Restaurants, hotels and travel
Same-store sales (comparable sales)
The US name for like-for-like sales: growth at restaurants or stores open in both periods.
Last reviewedWhat does Same-store sales (comparable sales) mean?
Same-store sales growth (also called comparable sales, or comps) measures the change in sales at locations open for the whole of both periods, usually at least 12 to 18 months depending on the company, so that new openings do not flatter growth. It is the same idea as like-for-like sales. For restaurants it splits into traffic (the number of transactions) and average check. Example: same-store sales up 4 percent, with traffic down 1 percent and average check up 5 percent, means growth came from price and mix, not from more guests, which may not last. Listed chains report it every quarter, and investors watch it closely.
Where does it come up in case interview prep?
Related terms
- Like-for-like sales (LFL)Sales growth from stores open in both periods, leaving out new and closed stores.
- Average unit volume (AUV)Average yearly sales per restaurant or store.
- CoverOne guest served a meal: the unit restaurants count.
- Prime costFood and drink cost plus labour cost, the two biggest restaurant costs.
- Table turnsHow many times each table is used by a new group in a meal period or day.
- Franchise royaltyThe ongoing fee a franchisee pays the brand, usually a percentage of sales.
- Master franchiseThe right to develop a brand across a whole country or region, including signing sub-franchisees.
- Delivery aggregatorAn app that lists many restaurants and delivers their food for a commission.