cartoon trade

How to calibrate the effort rate for a business ?


The effort rate is the ratio between the rent and charges (co-ownership charges and property tax in particular) and the turnover generated by the exploitation in the property, object of the rent.

How to calibrate the effort rate for a business?

The effort rate is generally below 10%, especially for non-food businesses.
On the other hand, for the trades whose location is essential, the effort rate can increase beyond 15%, and in particular for the catering trades, catering or hospitality.
For the latter category, it has its own calculation methods which we will study in another section.
The effort rate is a very important ratio for the business manager, who must monitor him periodically, at the risk of endangering his structure.


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