KPIs are the most effective approach for managers to obtain insight into how their restaurant is operating. They may be used to gather and measure both team and financial performance. With KPIs, you can immediately discover any issues with the way you’re running your restaurant and take action, or you can focus on improving the areas where you’re succeeding.

The restaurant business has always been very competitive. Managing a successful restaurant is challenging due to tight margins and shifting culinary trends. To make matters worse, restaurateurs might sometimes feel as if they are stuck in a fog — even with a regular physical presence in the restaurant, keeping track of their personnel and everyday operations can be tough.

The list of restaurant KPIs is extensive, and you will not be interested in all of them. The trick here is to focus on the KPIs that are most relevant to your overall goals — concentrating on the incorrect ones might cost your business money.

We’ve whittled down a list of widely used KPIs to the ones we feel are most relevant to restaurant managers to save you time:

Sales & Profitability KPIs

Any restaurant, including management and staff, is only as excellent as its people. Because labor expenses are often among the highest in any business, it’s critical to know how productive your employees are and how much revenue they generate.

Similarly, ensuring that employees are engaged and happy at work is critical, since excessive staff turnover has a negative influence on productivity and the bottom line.

Cash Flow: The quantity of money that comes in and out of your restaurant, as well as the amount of cash you have on hand, are two of the most crucial items to keep track of as a restaurant. You might be putting your restaurant up for failure if you don’t analyze your cash flow on a regular basis.

Here’s a formula to assist you figure out your cash flow: Cash Flow = Beginning cash – Ending Cash

Customer Experience KPIs

When was the last time you went to a new restaurant on your own? Exactly!

Before making a purchase, 97 percent of shoppers examine internet reviews, with over half of those trusting evaluations with four stars or above. Similarly, whether running a Michelin-starred restaurant or a tiny, neighborhood café, client happiness should be at the top of every restaurant manager’s priority list. Customers vote with their wallets, and to keep them coming back, a team of friendly and effective employees is important.

Customer Retention Rate: When you evaluate the expense of gaining new consumers, this KPI is quite important. To keep your restaurant expanding, you must compensate for every client you lose while also drawing new customers. Your customer retention rate can also be used to determine how loyal your present clients are, and hence how good your customer service is.

Customer retention rate = the number of customers at the end of a period – the number of new customers acquired during that period / the number of customers at the start of that period * 100

Marketing KPIs

In an age where a bad website and a lackluster social media presence can make or destroy a company, it’s critical to keep track of various promotional channels and have a strategy that ties everything together.

Website traffic metrics: Includes KPIS such as sessions by channel, website engagement and keyword rankings and search traffic

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