The human body needs a routine checkup to ensure that everything is working properly. So does your restaurant too. This is where Restaurant KPIs (Key Performance Indicators) come into play. By measuring restaurant performance metrics like sales, revenue, and customer feedback, you can gain a lot of vital information that will keep you on your toes.
In this blog, we delve deep into the world of Restaurant KPIs, exploring why they’re crucial for your business’s success. You will also read about some commonly used restaurant KPIs that track financial success, and measure customer satisfaction and operational efficiency of your restaurant. Lastly, you’ll learn how EasyEat’s 7 comprehensive reports empower you to make data-driven decisions.
Everything you need to grow your restaurant
What are Restaurant KPIs?
Restaurant KPIs (Key Performance Indicators) are quantifiable metrics on various parameters like sales, revenue, marketing, quality, health and safety, etc. You can use these metrics to assess the health of your restaurant business and pinpoint its strengths and weaknesses.
How to decide on Restaurant KPIs?
Define your objectives and goals
The first and foremost step that you should be following is defining your goals clearly. What is it that you want to achieve? Is it more revenue? is it more customer satisfaction? Or is it increasing customer loyalty? You can then align your KPIs accordingly.
Once you clearly define your goals the next thing you would want to do is take inspiration from these examples of metrics that are commonly used by restaurant owners to track the health of their restaurant.
KPIs to Track Financial Health
Gross Profit margin
This metric is the percentage of revenue left after subtracting the cost of goods sold. This metric can help you calculate the profitability of your restaurant.
Average check size
This is the average of the checks of your restaurant. It helps in measuring the amount people are willing to spend at your restaurant.
Cost of labor
It’s important to track the labor costs as a percentage of sales in your restaurant.
KPIs to track Customer Satisfaction
Customer Feedback Score
Utilize surveys, online reviews, and comment cards to gauge customer satisfaction. This KPI gives you insights into the quality of your service, food, and overall dining experience.
Net Promoter Score (NPS)
NPS measures customer loyalty and their likelihood of recommending your restaurant to others. NPS is calculated as the difference between the percentage of your customers who will recommend your restaurant and customers who will not recommend your restaurant. Monitoring this score helps you identify brand advocates and areas for improvement.
Repeat Customer Rate
The percentage of customers who return to your restaurant is a strong indicator of customer satisfaction. A high repeat customer rate implies a positive overall dining experience.
KPIs to track Operational Efficiency
Table Turnover Rate
This KPI measures the number of times a table is occupied during a particular period. A high table turnover rate indicates efficient service and maximized seating capacity.
Order Accuracy
Accuracy in taking and processing orders is crucial for customer satisfaction. This KPI helps you identify any bottlenecks or training needs in your order management process.
Food and Beverage Waste
Keeping track of wasted food and beverages is essential for cost control and sustainability. Measuring this KPI allows you to identify areas where waste can be reduced through better inventory management or portion control.
How EasyEat help you in analyzing these restaurant performance metrics?
EasyEat offers you the opportunity to look into 6 different types of reports related to orders and sales that will help you fix things that aren’t working in your restaurant and will empower you to make data-driven decisions.
Order Report
This report comes to your rescue when you want to know about sales. You can track a specific order and analyze monthly sales trends. It gives you a detailed overview of orders, item sales, and payments. This report is a treasure trove of information that will help you in calculating your income.
Dish Report
To know the stars of your menu that are taking the spotlight, refer to these reports. These reports are very handy when you want to know what your customers like. The Dish report highlights top-selling items, quantities sold, revenue generated, and voided items over a specified period. Use this information to upsell the best items and modify your menu to always stay relevant.
Sales Report
You can track sales over different time frames (daily, weekly, monthly, quarterly), transaction types (online, offline), and payment methods. This report will help you assess the growth of your restaurant by letting you compare the sales. This will be very useful while planning your marketing strategies. By knowing the type of transaction you can stay prepared with liquidity of cash.
End of Day restaurant report is like a daily checkup that you can look into before going back home in the evening. You can access all the details related to all the orders placed throughout the day or said reporting hours. All the transactions will segregated based on payment methods, order types, commissions, discounts, item sales, etc. This will help you to stay updated with the details related to commission and also make sure that you don’t miss out on the discounts that you have given throughout the day to the customers.
Cash Balance
This is one of those restaurant metrics that you can use to assess the financial health of your restaurant. It gives you real-time visibility into the cash drawer transactions, including cash in/out, opening cash floats, and invoice settlements. This is useful to manage liquidity in your restaurant and settle any kind of dispute arising over the cash drawer.
Customer Data Report
You can get a list of all those people who just can’t get enough of your restaurant. If you own multiple outlets then this is for you. Customer Data report has your users’ contact details, their total purchases during that period, the outlets they placed orders from, and the latest date of order. This will help you create tailored loyalty programs and coupons for them.
Customer Review Report
This report will help you get validated. It is coming from your customers’ mouths, you should pay attention to it so that you can keep improving your food and your service. Find all the reviews and ratings left by your customers in this report.
To conclude, you have learned in detail about what are restaurant KPIs. You have also learned about how you can create your restaurant KPIs to measure the success of your restaurant. You also went through some of the commonly used KPIs that are used to measure financial health, operational efficiency, and customer satisfaction. Then you read about how EasyEat allows you to track these metrics by comparing 7 different types of reports. From tracking sales trends to identifying popular menu items and managing finances effectively, these insights are essential for making informed decisions and driving growth. By harnessing the power of data, you can not only optimize your operations but also enhance customer satisfaction and loyalty.
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