sts are too high before transformation of the food. The reasons could be waste, spoilage, theft or oversized portions. Beverage costThis ratio is similar to the food cost percentage ratio: The ratio is expressed as a percentage of beverage revenue. By comparing it to the budgeted figure, the company can assess how efficiently the restaurant manages the purchase, transportation, delivery and storage of beverages.Labor costThe labor cost ratio is expressed as a percentage of total F&B revenue: Labor cost shows the amount of revenue needed to cover salaries, wages and other employee benefits.Revenue per employeeRevenue per employee is calculated as follows: This ratio is used to determine how efficiently the restaurant is using its employees to generate sales; the higher the figure, the more efficient the employees are.Notes on Benchmark ComparisonUsing the previously described ratios, below is a comparison of some of Darden against three of its main competitors and to the restaurant industry average (see Table 3). The figures for the latter were taken from the 1999 Restaurant Industry Report compiled by the National Restaurant Association and Deloitte & Touche LLP and show median values. The data for the four companies (i.e. Darden Restaurant, Inc., Brinker International, Inc., Outback Steakhouse, Inc. and Lone Star Steakhouse & Saloon, Inc.) was gathered from the respective 1999 10K reports. The average check figures are weighted averages for restaurants operating in the same segment. In the case of each company, the weighted average check was obtained by, first adding the products of the average check and total number of restaurants brand by brand, and then dividing the result by the total number of restaurants selected for all brands selected. The choice of brands were Red Lobster and Olive Garden for Darden Restaurants, Inc.; Chilis, Romanos Macaroni Grill, On the Border Mexican Grill & Cantina, Cozymels Coast Mexican Grill and Big...
