Do you have standards you want your business to meet? Are they objective and measurable?

That is in essence what KPIs (Key performance indicator) and metrics are.

Owning or managing a restaurant or bar is not an easy task. It is never a walk in a park. Your attention will always be drawn to different things. Howver, As a manager or business owner, you need to start measuring your KPIs. KPIs help you track your successes or failures. They help you track which part of your restaurant needs more effort as well as identify your strengths and weaknesses.

In order to take note of the right things to monitor and not end up more confused, leveraging technology is essential. You also need to take into consideration the features a sound KPI should have.

– Is it measurable and objective?

– It is applicable to your plan and goals?

– Can it be monitored regularly and in real time?

Let’s dig in.

The Powerhouse

These are the most important.  Think of them as sort of like the Kitchen of measurables.  There are other important aspects but without these you are completely lost.

– Best and worst selling items

– Costs and profits % of all the items you sell

– Labor costs as a % of sales

– Production time per dish

– Waste and spoilage per item

As you can see all of these are based around your prime costs.  They tell you what dishes to keep and what to remove, whether your items are priced properly, whether you need a better margin on a particular dish vs another.

The Foot Soldiers

These are still important, but they tell a different story.  These are more about efficency and optimization.  If is absolutely integral that you have your powerhouse metrics inline, but these are more about adding to your bottom line.

– Productivity per staff (are they upselling, who are your top people)

– Average ticket

– Occupancy rates

– Revenue per sq ft

– Revenue per available seat hour

– Table turns

– Customer satisfaction

– Staff turnover

Advertising and Marketing

The other two groups that we covered were focused on the operations of the establishment.  These next few are going to be focused on getting the customers in the door.  At some point, no matter how amazing that your food is, word of mouth is not going to be the sole source of driving customers.  When you reach that point you will need to persue other advertising and marketing efforts.  That may customer loyalty rewards, paid advertising, or using a food delivery services, but whichever route you take you need to measure the effectiveness and return on the investment you are making.

– Gross profit % on food delivery

– Cost per customer acquisition

– ROI for adspend toward new customer

– ROI for adspend for retargeting

– Social media engagement

Wrapping it up 

We covered a lot of important items to track, but these may or may not apply to you.  Every business is different and have different goals, and need to track different metrics.  There are going to be items that you should be tracking that were not even convered.  If you need help getting this set up, please book a free consultation and see how we can help.