Explain restaurant CAM variance
Use two steps for a site cost ratio change.
First, split sales movement from site cost movement. Then test CAM against lease proof.
Do not use the ratio alone. It cannot show what the lease permits.
Restaurant.org reported 2024 survey medians. The source says these figures help managers.
They are not standards or goals.
Service type and location also shape its survey view. Keep those limits with each check.
Pick one cost list
Choose which site costs go above sales.
- Rent
- Taxes
- Insurance
- CAM
- Building-tied utilities
This is one method, not an industry rule. Write the cost list above the math.
Use the same cost types each period:
- Base rent
- CAM
- Property taxes
- Building insurance
- Site utilities
- Percentage rent, when the lease applies
Do not add food or labor to site costs. Keep sales below those costs.
Build the ratio bridge
First explain the full ratio. Then test only the CAM change.
Use these first layer fields:
| Field | Prior period | Current period | Change |
|---|---|---|---|
| Sales | Source amount | Source amount | Current less prior |
| Base rent | Source amount | Source amount | Current less prior |
| CAM | Source amount | Source amount | Current less prior |
| Taxes | Source amount | Source amount | Current less prior |
| Insurance | Source amount | Source amount | Current less prior |
| Utilities | Source amount | Source amount | Current less prior |
| Total occupancy cost | Sum above | Sum above | Current less prior |
| Occupancy ratio | Cost divided by sales | Cost divided by sales | Current less prior |
Stop when the periods do not match. Also stop when the cost list changed.
Walk one ratio sample
This example is fictional. All amounts are made up.
| Input | Prior year | Current year |
|---|---|---|
| Sales | $1,000,000 | $950,000 |
| Base rent | $60,000 | $62,000 |
| CAM | $20,000 | $28,000 |
| Taxes | $10,000 | $11,000 |
| Insurance | $5,000 | $5,000 |
| Utilities | $5,000 | $6,000 |
| Total occupancy cost | $100,000 | $112,000 |
| Occupancy ratio | 10% | 11.79% |
The ratio rose by 1.79 points. Two forces drove that change.
Sales fell by $50,000. Site costs rose by $12,000.
CAM caused $8,000 of the cost rise. That still proves no billing error.
The next step tests the $8,000 CAM change.
Test the CAM change
A restaurant lease guide says CAM bills may come each year. It says lease terms control the year end check.
Use this second layer:
| Test field | What to record |
|---|---|
| CAM change | Current CAM less prior CAM |
| Lease clause | Exact section and page |
| Statement line | Exact label and page |
| Allowed method | Share, cap, base, or other term |
| Math inputs | Every amount used |
| Support state | Present, missing, or unclear |
| Reviewer state | Open, checked, or approved |
| Next step | Ask, close, or send to counsel |
Now extend the fictional sample.
The lease file has a CAM share clause. The statement shows the $28,000 line.
The landlord cost detail is missing. The support state is Missing.
The reviewer state stays Open. No one calls the $8,000 wrong.
The next step is a support request. The ratio does not change that answer.
Use three stop rules
Stop the bridge when any rule fails:
- Both periods must use the same cost list.
- Sales periods must match the cost periods.
- CAM claims need lease and statement proof.
Send unclear lease meaning to counsel. Do not turn it into a math guess.
Use the site cost audit card after explaining the variance.
Move flagged sites into the restaurant CAM queue.
Send checked costs to the menu pricing gate.
The restaurant advisor pillar maps the variance handoff.
Find other variance owners in the Practice Growth hub.
Check source steps in the franchise consultant hub.
Frame the variance service on the franchise consultant page.
Where CAMAudit fits
Restaurant advisors own food, labor, POS, menu, and sales inputs.
CAMAudit handles supplied lease and CAM files only.
It can run fixed math. Its report links approved findings to source lines.
Your firm reviews and signs the branded CAM audit. You then explain the bridge.
An approved cost bridge item may support a dispute letter draft. Your firm reviews it before use.
It is not legal advice. Have counsel review before sending.
Use the service line guide to set review roles.