• Ice cream retailing

    Businesses in this industry sell ice cream, gelato, frozen yogurt and soft serve cones.

    Some businesses may also sell confectionery, drinks, other desserts and a limited selection of fast food. Ice cream retailers may operate from free standing shops, inside shopping centres or from vans and trucks.

    Performance benchmarks

    These performance benchmarks are updated annually and developed using information reported on income tax returns and activity statements for the 2013–14 year.

    These benchmarks show a number of different financial ratios of business income to business expenses, to help businesses compare their performance against similar businesses in their industry.

    The key benchmark ratio for this industry is cost of sales to turnover (see definitions). This ratio is likely to be the most accurate predictor of business turnover. For businesses that do not report cost of sales or only report a small amount, total expenses to turnover can be used to predict turnover.

    2013–14 financial year

    Key benchmark ratio

    Annual turnover range

    $65,000 – $275,000

    $275,000 – $475,000

    More than $475,000

    Income tax return

    Cost of sales/turnover

    29% – 35%

    30% – 34%

    28% – 31%

    Average cost of sales

    32%

    32%

    30%

    Total expenses/turnover

    79% – 88%

    85% – 90%

    84% – 93%

    Average total expenses

    83%

    88%

    88%

    Activity statement

    Non-capital purchases/
    total sales

    65% – 75%

    65% – 74%

    57% – 66%

    The following benchmarks can be used as a guide for businesses to review their performance and business practices against other similar businesses.

    Not all expenses are reported by every business, so one or more of the below benchmarks may not apply to your business.

    Benchmark ratio

    Annual turnover range

    Income tax return

    $65,000 – $275,000

    $275,000 – $475,000

    More than $475,000

    Labour/turnover

    16% – 22%

    17% – 23%

    21% – 27%

    Rent/turnover

    17% – 23%

    13% – 21%

    12% – 19%

    Motor vehicle expenses/turnover

    2% – 5%

    1% – 3%

    1% – 2%

      Last modified: 25 Feb 2016QC 43760