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- 1. Guest Accounts
- 2. Average profit per cut
- 3. Avg. customer check
- 4. Acquisition cost
- 5. Retention rate
- 6. Percentage of labor
- 7. Revenue per hour
- 8. Rolling drawbar seats
- 9. Break-Even Point
If you’re a coffee shop owner, you know how important it is to monitor your key performance indicators (KPIs). These are the metrics that show how well your business is doing, and they vary from industry to industry. In this article, we’ll cover some of the most common KPI metrics for cafes and how to calculate them so you can start tracking them on your own.
These are the KPIs to track if you own a cafe.
If you’re a coffee shop owner, tracking key performance indicators (KPIs) is essential. They will help you make good decisions about your business. What are these KPIs?
- How many customers visit your store each week/month/year?
- How much money do they spend on average?
- How many times do they come back?
How much money do you make per customer? Are there any KPIs we missed? Let us know in the comments below!
1. Guest Accounts
The number of guests is a key metric to measure the success of your café.
This will give you an idea of how your business is performing and whether or not you need to make any changes.
The most important thing to remember about KPIs is that they will make your life easier. You won’t have to guess how well your store is doing, because you can see exactly what’s going on. You can track your performance against the goals you set for yourself, or against the industry, the average cafe will have a turnover rate of around 4%. This means that on average, customers will visit your place four times before deciding to go elsewhere.
2. Average profit per cut
Average profit per cup (APPC) is a measure of how much profit you make on each cup of coffee sold. It is calculated by dividing profit by total sales, which can be in different units depending on your pricing structure.
For example: .00 profit divided by .00 sales equals 10% profit per cup.
This is a useful number to know, as it tells you exactly how profitable your cafe is. If the APPC is too low, you may need to raise prices or find ways to cut costs. If it’s too high, you can consider lowering prices or adding more value for customers.
It is important to note that APPC is not the same thing as profit margin. This is not an apples to apples comparison. You can have a high profit margin while earning less money per cup than if you had a lower margin and charged more for each cup.
3. Average Customer Verification
Average Customer Verification is the average amount of money spent per customer. It is calculated by dividing the total revenue by the total number of customers. The formula looks like this:
Average Customer Verification = (Number of Customers) x (Average Ticket Size)
This metric is important because it helps you understand how much to charge for products in order to make a profit and stay competitive in your industry.
For example, if the average customer check is 0, you can use this metric to decide whether to cut prices or cut costs to increase revenue per customer. Additionally, this metric will help you gauge how much money each of your customers spends on average.
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4. Customer Acquisition Cost
Customer acquisition cost is a metric that measures the cost of acquiring a new customer. It is calculated by dividing the total cost of customer acquisition by the number of new customers acquired, and can be used to determine how much profit you need to make from each customer in order to cover your costs.
For example: if you spend on ads and get 100 new customers, your CAC would be .00 ( divided by 100). If they’re paying per order, you’d need at least five orders per month (or 50% conversion rate) just to break even .
The formula for calculating the CAC is:
Cac = Total acquisition costs / number of new customers acquired
CAC is a critical metric to track for any business that relies on marketing and advertising to attract new customers. It lets you see how much it costs to acquire each customer, helping you determine whether your ad campaigns are profitable or not.
5. Customer retention rate
Customer retention rate is the percentage of customers who return to a business within a particular time frame. The most common way to calculate this metric is to look at the number of customers returned to your business during a given time period, divided by the total number of customers who arrived during that same time period.
For example, if 100 people visited your cafe in a month and 20 of them returned within 30 days, your customer retention rate would be 20%.
To determine what constitutes an acceptable level for your business, you will need to know what the industry average is as well as the number of repeat visits needed to compensate for lost revenue due to customer churn (customers who leave ). According to research firm Gartner Inc., companies with 50% or higher retention rates generally grow faster than their peers who have lower retention rates; However, there is no universal target figure as each industry has its own average number of repeat visits required per order and related customer conversion rates.
6. Percentage of labor
Labor percentage is the time spent doing work versus non-work. For example, in a cafe, it is calculated as the total number of hours worked divided by the total number of hours open for business. This metric should be tracked in conjunction with other workforce metrics like turnover rate and absenteeism rate to give you an idea of whether your employees are happy or not.
The formula for calculating the percentage of labor is:
Percentage of labor = (number of hours worked) / (total store hours) * 100
7. Earnings per hour worked (RPH)
RPH is a metric that measures how much revenue your cafe makes per hour of work. It is calculated as:
RPH = Earnings / working hours
For example, let’s say you made ,000 in a month in your cafe and worked 100 hours during that time. This means your RPH would be 0/hour. This number can be used to determine things like how productive employees are or if they need more training on their shifts.
8. Tourneau cafe seats
Cafe seat renue is calculated by dividing the number of customers served by the number of seats in a cafe.
You can use this metric to calculate the average number of customers per hour, day, week, month, and year.
This is a good metric to use if you want to determine your store’s capacity, as well as monitor how often customers arrive.
9. Cafe Coffee Exit Point
The break point is the amount of money you need to earn to cover your costs. It is calculated by dividing fixed costs by variable costs. This metric is important for businesses as it helps them plan for growth and profitability, but it can also be useful for cafe owners who want to keep tabs on results throughout their business.
You can use this formula to calculate your break-even point:
Break pair point = fixed cost / (units sold x average variable cost)
For example, say you have ,000 in fixed expenses each month and your average cup of coffee sells for .50. To figure out how many cups you need to sell each month to not lose money (i.e. tap your breakdown), take 10k divided by (3×5) = 5k or 5,000 cups per month! If you think that sounds like a lot of work just so we don’t lose money…well, I’m sorry but maybe don’t open a cafe because it’s not worth it; )
Conclusion
With KPIs, you will be able to easily track and monitor important metrics like customer counts, average profit per cut, etc. You can even use them to help you determine when it may be time for expansion or other changes within your business.