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ADS (average daily sales per store)

Business Model & Unit Economics · Unit metrics

What it is

Revenue per store per day - the standard unit-economics measure in restaurant retail. It determines whether a store covers its rent, staff and utilities, which are largely fixed regardless of how many customers arrive

Rent and staff can be 25-30% of store-level revenue

Impact on industries

  • The cleanest test of format viability - a store either clears its fixed-cost hurdle or it does not, independent of chain-level accounting
  • QSR outlets are engineered for throughput, so when footfall drops the fixed-cost structure becomes a liability rather than an advantage
  • Smaller store formats, delivery-focused outlets and cloud kitchens lower the ADS threshold needed for viability
  • Delivery mix complicates it - delivery orders raise ADS but carry aggregator commission, so higher ADS does not always mean better store economics

Industries affected