Your time is precious – you want to spend it focused on growing your business, not putting out fires.
One effective way to make sure your business is on track is to monitor key performance indicators, known as KPIs. KPIs are business metrics that help you monitor and improve the financial progress of your restaurant. Top managers around the world use them to ensure the success of their operations.
You’re probably already keeping a daily eye on sales figures and profits for your restaurant. You also likely watch average check size and the cost of food versus sales. These figures are important, but they miss several essential elements. The best restaurants track dozens of KPIs to keep things running smoothly.
As you likely don’t have the time or the systems to look at dozens, we researched and consulted with restaurateurs and experts to determine the most important ones for small to mid-sized independent restaurants. Some are new and some are old, but all shed new light on how a restaurant functions.
With these five KPIs, you can increase sales and profitability, and make measured adjustments to help your business grow:
Answers the question: Can I pay my bills, staff, and suppliers?
Revenue Per Available Seat Hour
Answers the question: Am I maximizing revenues for my restaurant’s capacity?
Answers the question: Am I doing a good job at keeping my best employees?
Answers the question: How well am I managing my biggest expenses for the restaurant?
Menu Item Profitability
Answers the question: Is my menu as profitable as it could be?
Watching average check size as well as sales figures and profits is an excellent start, but it’s not enough. You should know which figures and metrics will help you make the decisions you need to grow…