One of NATSO’s primary roles is to deliver solutions to members’ challenges. Every day members tap into the expertise of NATSO’s staff for answers to some of their most pressing questions. We’ll be periodically sharing those questions and answers here on NATSO’s blog so that all readers can benefit. Have a question you’d like answered? Email it to editor@natso.com. We’d love to tackle it. - AT
What Items Go Into The Sales per Square Foot Calculation For Truckstops?
Question:
How is sales per square foot calculated for truckstops? For instance:
- Do you include diesel sales and/or gas sales in the calculation?
- Do you use the c-store (and showers) sq. ft and include the separate quick serve restaurant (QSR) square feet for an overall number or do you do them separately?
- Do you deduct any "back of the house" footage from the calculations i.e. office, storage, restrooms, electrical room, etc.?
- Do you include lotto, parking fees, scales and other service fees?
Answer:
Much like any calculation in our industry, the exact items included in the calculation for sales per square foot is often up to the operator. It can be very misleading when sales per square foot is spoken about because retailers often look at what is included in the generation of the figure differently.
It is simple to identify the sales per square foot of a display but more challenging when trying to identify the sales per square foot of an operation.
Essentially the best way to approach the question is to ask what are you really trying to find out.
Historically when it comes to overall and/or specific sales per square foot, it is retail focused. Thus the actual retail selling space is used.
In response to your specific questions:
- Do you include diesel sales and/or gas sales in the calculation? Traditionally the diesel sales and gas sales are not part of the calculation.
- Do you use the c-store (and showers) sq. ft and include the separate QSR sf for an overall number or do you do them separately? The retail space in the travel store/c-store is used excluding showers. You can indeed include the QSR square footage for an overall number, just like you can include showers for an overall number, depending on what are you trying to identify. Many operators look at the QSR sales per square foot separately.
- Do you deduct any "back of the house" footage from the calculations i.e. office, storage, restrooms, electrical room, etc.? Traditionally you do not include the "back of the house" footage.
- Do you include lotto, parking fees, scales and other service fees? Again, you can use these other income figures in your calculations. Generally other than lotto I am not aware of any retailers within our industry utilizing any service fees and/or other revenue sources in their calculations of sales per square foot.
More resources on key performance indicators for truckstops:
- These Top Ten Monthly Metrics Will Result in Key Takeaways For Your Truckstop
- Key Performance Indicators
- Key Performance Indicators for Truckstops
- Top 10 Daily Metric Checks for Truckstop Operators
- How to Calculate the Breakeven Point on a Truckstop Promotion
Photo Credit: Ira Wexler/NATSO
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