How is the average guest check calculated?

The average guest check is calculated by dividing total sales by the total number of covers, which represents the number of guests served. This metric is crucial for hospitality businesses as it provides insight into the spending patterns of customers. By understanding the average check size, restaurants and other hospitality venues can evaluate their pricing strategies, assess customer behavior, and identify opportunities to increase revenue.

For instance, if a restaurant generates $2,000 in sales and serves 100 guests, dividing the total sales by the total covers yields an average guest check of $20. This figure helps managers make informed decisions related to menu pricing, promotions, and service efficiency to ultimately enhance the guest experience and profitability.