Definition
APC, or average per cover, is the average amount each diner spends in a hotel outlet — the food and beverage equivalent of ADR, measuring value per guest rather than the number of guests served.
Also called: Average Per Cover · Average spend per cover · Average check
How it is calculated
- APC = Outlet Revenue ÷ Number of Covers
In practice
Almost every hotel manager can explain their ADR and what drives it. Far fewer can do the same for APC, which is noted during budgeting and then lost behind total F&B revenue, year-on-year growth and food promotions.
Part of the reason is structural. ADR is largely market-driven while APC is still menu-pricing-driven. Every outlet has a different APC, so a banquet figure cannot fairly be compared with a coffee shop or a bar, dinner APC is generally higher than lunch, guests' dietary habits vary widely, and meal plans distort the number in a hotel. Hotel restaurants also compete more with standalone restaurants and QSR chains than with other hotels' outlets.
One working rule of thumb — widely used rather than formally established — is that an outlet's APC should not fall below the combined price of its most popular starter and main course. It is a quick way to sense-check whether menu pricing and the sales mix are holding up.
Why it matters to an owner
APC is where menu engineering shows up in the numbers. If average per cover and total contribution rise while covers hold steady, a menu change worked; if covers rise while APC falls, the outlet is busier and no better off.
Frequently Asked Questions
Not fairly. Banquet APC cannot be compared with a coffee shop or a bar, dinner is generally higher than lunch, and meal plans and dietary habits distort the figure. Compare an outlet against its own history instead.
Capture ratio for each meal session and the number of non-resident guests dining at the hotel. Those say more about whether the outlets are working than APC does on its own.