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- 1. Average sale
- 2. Number of trans
- 3. Customer count
- 4. Retention rate
- 5. Customer ACQ Cost
- 6. Coffee sales mix
- 7. Gross margin
- 8. Profit per Sq. Foot
- 9. Labor cost percentage
A cafe is a place where people go to relax, have fun and spend time with family or friends. It’s a place to hang out and socialize with other people. Customers expect their coffee shop experience to be extremely enjoyable and enjoyable, so it’s important for you to measure the success of your coffee shop by tracking key performance indicators (KPIs). These KPIs should give you an idea of the financial health of your business over time.
1. Average sale
Average sale is the most important metric for a cafe. It is calculated by dividing the total sales by the number of transactions.
For example, if you sold 0 worth of food and beverages in one day with five customers, your average sale would be (150/5). This means that each customer spent on average about . If you had three customers on the same day who each purchased two items at each, your total sales would be and your average sale would still be ( / 3).
It is important to know your average sale so that you can accurately predict the amount of money you will regularly receive. This is especially important if your cafe has fluctuating sales that vary from day to day or season to season. You may have days when you sell a single item for and other days when 100 people walk through your doors and spend 0 each.
2. Average number of transactions
You’ll want to track the number of transactions your cafe makes per day, week, month, and year.
This can be done in two ways:
- Total number of transactions for a given period (week/month/year) divided by total days/weeks/months which equals an average number of transactions per day/week/month/year.
- Total number of transactions for a given period multiplied by 365 days in a year divided by a total of days that make up this period equals an average number of transactions per day / week / month / year
3. Customer count
The number of customers is quite simple to measure. The only thing you need to know is the number of customers visiting your cafe in a day, week or month.
You can also track the number of long-term customers by tracking the number of customer visits from customers. If you have a loyal fan base, this will give you an indication of how many people are coming back regularly and show their loyalty to your business.
The best way to measure the number of customers is to use a counting tool. This will help you get an accurate count, and it’s also easier than trying to do it manually. If you have a lot of customers coming in and out of your cafe, it can be difficult to keep track of all of their visits.
4. Customer retention rate
Customer retention rate is the percentage of customers who return to your cafe. It is calculated by dividing the number of repeat customers by the total number of customers over a period of time.
This metric is an important metric for cafes and restaurants because it shows how many people return, so it can help you identify ways to improve your business to attract more repeat customers.
The formula for calculating customer retention rate is:
Customer retention rate = Number of repeat customers / Total customers over a period of time
For example: you have a cafe with 10 customers in one day. Five of them are new customers and five have already visited. The customer retention rate would be 50% (5/10).
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5. Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is the amount of money it costs you to acquire a new customer. Therefore, it is a useful metric for measuring the effectiveness of your marketing campaigns and sales teams in introducing new customers.
CAC can be calculated by taking the total amount spent on marketing and advertising, dividing that by the number of new customers acquired during that period, and then multiplying that answer by 100.
For example:
- Total marketing spend: ,000
- New customers acquired: 120 people (120 x 100 = 120000)
Total cost per customer acquisition = 10,000 divided by 120 = (). This tells you that each customer costs around for you to acquire; However, as we will discuss later in this post – every dollar spent does not necessarily equal a dollar earned from a customer!
6. Coffee sales mix
The Café Sales Mix is the percentage of each product sold in a café.
For example, if you sell 70% coffee, 20% baked goods, and 10% other products, your coffee sales mix would be 70:20:10. This is how you arrive at this metric – you take the total revenue generated by all products sold and divide that number by 3 (the total number of items).
This metric will help you understand which products are working well for your business so you can focus more time and resources on improving areas that aren’t working as well.
7. Gross margin
Gross margin is the difference between revenue and cost of goods sold. Gross margin is the most important metric to track in a coffee shop, as it tells you how much profit you make on each item sold. To calculate gross margin, divide your total revenue by your total cost of goods sold.
This calculation can also be called “gross profit”.
For example, if you sold a cup of coffee for and spent on ingredients to make that cup, your gross profit would be 50%. If you spent .50 and sold it for , your gross profit would be 50%.
8. Gross profit per square foot
Gross profit per square foot is the amount of revenue remaining after subtracting operating expenses from sales.
It’s a useful metric for comparing companies of different sizes, but it doesn’t tell you much about individual locations or time periods.
Let’s say the average restaurant in your city has a gross profit per square foot of and your cafe has a gross profit per square foot of . While this might be good news for your business, it doesn’t necessarily mean you’ll experience that same level of profitability in every location or even every branch for a year.
9. Coffee Labor Cost Percentage
Labor Cost Percentage (LPC) is the percentage of revenue that goes to work. It is calculated by dividing your total labor costs for a period by your total revenue for that same period. This metric is one of the best indicators of your effectiveness in managing your staff and keeping them focused on delivering great service with every interaction.
To calculate your LPC, simply take your total labor costs and divide that number by your total revenue for the period.
Here’s an example: if you have a total of million in sales in a month and your labor costs totaled ,000, your LPC would be 0.1%.
Conclusion
In this article, we’ve talked about some of the most important KPI metrics to track in your cafe and how to calculate them. Now that you know the basics, get out there and start tracking your cafe’s KPIs!