Restaurants, hotels and travel
Average unit volume (AUV)
Average yearly sales per restaurant or store.
Facts checked against sources onWhat does Average unit volume (AUV) mean?
Average unit volume is the average annual sales of one restaurant in a chain, usually counting only units open for the full year. It is the headline measure of how productive each location is. Example: a chain with 250 restaurants open all year and system sales of 500 million has an AUV of 2 million. Investors compare AUV with the cost to open a new restaurant to judge new-unit returns: if a unit costs 1.5 million to open and earns a restaurant-level margin of 18 percent on 2 million of sales (360,000 a year), cash payback is a little over four years.
Where does it come up in case interview prep?
Related terms
- Same-store sales (comparable sales)The US name for like-for-like sales: growth at restaurants or stores open in both periods.
- Payback periodHow long until an investment earns back its cost.
- Unit economicsThe revenue and cost of one unit: one product, order or customer.
- 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.
- CoverOne guest served a meal: the unit restaurants count.
- 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.
Learn it in context
See Average unit volume (AUV) at work in a lesson from Restaurants and food service, with checks as you go.
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