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- 1. Pizzeria income
- 2. Guest Accounts
- 3. Sales per Sq. Foot
- 4. Check by guest
- 5. Table turnover rate
- 6. Gross profit
- 7. Item Gross Margin
- 8. Net profit
- 9. Food cost percentage
- 10. Labor cost
Pizza is a personal thing. Some people prefer thin crusts, others thick. Some like their pizza gooey, while others prefer it crispy. But as a pizzeria owner, you don’t have the luxury of personal preference – you need to make sure your store is operating at its peak and serving the best pies possible for your customers. In this guide, I’ll walk you through all the metrics you should follow for your pizzeria (and how to calculate them).
Make sure you know the metrics your store needs to follow.
KPIs are important because they help you gauge your performance against goals and objectives. This allows you to make informed decisions about where to spend your time and resources so you can continually improve your business.
Of course, the metrics that matter most depend on the type of pizzeria you own. Here are some examples:
- A traditional pizzeria can track sales by day, week, or month to get an idea of how many people are walking through the door each day. If there’s a lot of variation between days – or it looks like there should be more customers than what’s showing in their analytics – then maybe it’s time for an ad! Or maybe they need better marketing materials like menus or signage outside the store so people know what they’re selling inside (and vice versa).
- An artisan pizza might want to track how many people buy whole pies (by size), slices, or by type of topping (vegetarian vs. pepperoni) in certain price ranges. They could then adjust prices based on demand for certain types of pizza, so sometimes “cheaper” options become more popular than others at different times of the year without impacting overall profits.
1. Pizzeria income
Revenue is the most important metric for any business. It’s a measure of how much money your business has made, and so it can be used to determine the overall health of your business.
Income = Money brought by your pizzeria (sales, advice, etc.)
You can calculate it by looking at your monthly receipts or by using accounting software like QuickBooks Online.
The more money you bring in, the healthier your business. If your income is steadily increasing, it’s a good sign that your business is growing. If it decreases or remains the same, it may be time to consider strategy changes.
2. Guest Accounts
Guest counts can help you determine your customer base, identify growth opportunities, and track the success of your marketing campaigns. A guest count is simply a count of how many people visit your pizzeria.
Why Customers Matter
Guest counts are an essential part of the overall health of your business. They give you an overview of the amount of revenue generated by guests each month, week or day. If you have a limited budget for advertising, guest counts let you know if those efforts are paying off with new customers walking through the door.
Guest counts also help you determine the best time of day to run promotions or offer coupons. If you see a spike in sales after lunch, offering a lunch special may be worth it.
Guest counts also give you insight into how many people visit your business each month. This is useful if you have multiple locations and need to know how much revenue each is generating.
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3. Sales per square foot
Sales per square foot is calculated by dividing sales revenue by the total square footage of your pizzeria. If you have a small pizza place with only 2,000 square feet, you will have higher sales per square foot than someone with a large restaurant with over 20,000 square feet. The metric is important because it helps you see how much money your store is generating for every inch of space it takes up.
If your sales per square foot are low compared to other restaurants in your area or your average, it could mean one of two things: either customers don’t like visiting your store (and therefore don’t spend as much money), or there is something about its layout that does not work well for customers and does not make them spend less money there than in other pizza places.
Compare this metric to similar restaurants in your area to see if yours is underperforming or surpassing them when it comes to sales density (the more customers you get per square foot, the better) and adjust accordingly if necessary! If things aren’t looking good, consider adding new amenities or adjusting the layout so customers have better access to their favorite items like pizza and salads.
4. Average verification per guest
If a pizzeria has an average check per guest of , that means the average amount of money spent on each order is .
The reason this number is so important is that it tells you how much money your guests are spending at your pizzeria. Knowing this will help you make more informed decisions about how to best meet their needs, and will also help you determine if there are things you can do to increase their spending.
For example: if you notice that most guest orders have been under – and they’re not ordering soda refills or appetizers – there could be something wrong with the menu price or the general experience offered by your pizzeria .
On the other hand, if most guest orders are over — and they’re ordering soda refills and appetizers — you might want to consider raising pizza prices.
5. Table turnover rate
The number of times a table flips over a certain period. This is calculated by dividing the total number of customer visits by the total number of tables in your restaurant.
Table turnover rate = Total number of customer visits / total number of tables
To calculate your restaurant table turnover rate, you need to know the total number of customer visits and the total number of tables in your restaurant. If you don’t have access to these numbers, ask your manager or an employee who works at the front counter.
6. Gross profit
Gross profit is the difference between revenue and cost of goods sold. It’s the first profit you make in your business, so it’s a good indicator of your pizzeria’s financial health.
You can calculate gross profit by subtracting cogs from revenue:
Gross Profit = Revenue – Cogs
You need to know your gross profit in order to understand how profitable your pizzeria is. Plus, you can use it as a benchmark against which to compare other metrics, such as operating expenses and net profit margin.
7. Average Item Gross Margin
Average Item Gross Margin is the difference between the selling price and the cost of an item. It tells you what percentage of gross profit each item generates for your business.
For example, let’s say a pizza costs to earn and to sell. The average gross margin for the item would be 50%, which means that each pizza brings in profit for the pizzeria.
It can also tell you whether it is better to sell one large pizza or two medium ones at a cheaper price.
8. Net profit
Net profit is the difference between income and expenses. This is the amount of money you earn once all fees have been paid.
Net profit is also known as “net profit”, which refers to the same thing: the net profit after all expenses have been paid.
The bottom line is what matters most to your business, so it’s important to track and analyze your bottom line every month. If there is no net profit then what is left is not much, if anything at all!
9. Food cost percentage
The Food Cost Percentage is the percentage of total sales that goes towards purchasing food. It is also known as the food cost ratio. This metric is important to track because it shows how much money you make from each food sale, compared to other expenses such as labor or rent. The lower your food costs, the more profit you make from every dollar in sales.
Food Cost Percentage = Food Costs / Total Sales
This is the easiest way to calculate the food cost percentage. You simply take your total food costs for the month and divide it by your total sales that month.
10. Labor cost percentage
The labor cost percentage is the amount of money you spend on labor divided by your total revenue. In other words, it’s the share of your overall income to pay employees.
For example: if you earn 0,000 in revenue and spend ,000 on employee salaries, your labor cost percentage would be 30%.
If you manage to keep that number below 30%, great! This means that the more people you work at the pizzeria, the more money they can make for themselves (and maybe even for you). But if it gets too high – depending on 40% or 50% – you may struggle to stay afloat. This is why many successful business owners recommend keeping this metric as low as possible by reducing personnel costs whenever possible.
These KPIs will help you keep track of your pizzeria.
KPIs (key performance indicators) are a great way to measure success. They help you focus on the right things and make better decisions by providing insight into your business. In this article, we’ll cover some of the most important KPIs for pizzerias and how to calculate them.
Conclusion
We hope this blog post has helped you understand which KPIs your pizzeria should be tracking and how to calculate them. If you have any questions or comments, please leave them in the comments section below!