Average Profit per Store
Average Profit per Store is a financial metric used by Franchises, Groups and Retailers with multiple shopfronts to calculate the value of past and the benefit of future expansion.A higher figure is desired, whilst a lower figure may indicate that profits are being hindered by poor performance in particular locations. High average profit should be seen as a marker that the business is well positioned to grow its revenue base further by adding to its portfolio of stores.
Making the KPI
To create Average Profit per Store you will need to know:
- Total Profit
- Number of Stores
Total Profit is a financial metric, which should be calculated using financial data pulled directly from your accountancy platform of choice. Number of Stores is a Non-financial metric which should be uploaded into FUTRLI via CSV.
Once you’ve got the necessary ingredients, you can calculate Average Profit per Store by dividing Total Profit by your Number of Stores.
In the example below, we’re viewing our Average Profit per Store against a rolling 6-month trend, in order to get a clearer picture of performance.