← Business Metric: Industry Specific (Consumer, Services & Financial) (all topics)
ADS (average daily sales per store)
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