Benchmarking is the process of comparing businesses and performance metrics across an industry to determine best practices within the sector.
The three-tier comparison - top 25%, middle 50% and low 25% - is a benchmarking standard used throughout many industries.
Breaking up the averages for venues into three distinct groupings provides a greater level of detail than simply measuring performance against one overall average for each metric. It also provides an easy reference point that you can use to rank your venue’s performance within the industry.
For example, most venue managers would like to be in the top 25% for profitability. Knowing exactly where your own venue is positioned, whether it is in the top 25%, mid 50% or low 25%, puts your venue’s performance in context, provides a guide to what is possible and, through analysis of a range of other metrics, highlights areas for improvement.
Top, mid and low calculations in financial reports are all based on EBITDARD (%) as this is considered the best way to determine whether a venue is performing well. This means that a venue may be performing poorly in the selected KPI (e.g. Food Revenue ($)) but still be listed as being in the top 25%.
The top, mid and low figures in the gaming benchmarking reports are all based on Avg Profit/Day/EGM ($).