9 KPI metrics to track and how to calculate

To ensure that your bar is working well, you must follow certain measures. The following list contains some of the most important KPIs (Key Performance Indicators), which will help you assess your business function:

Bar KPI metrics to track

The above metrics are important to track to see how your bar is performing. You can use these metrics to measure your bar’s performance, make improvements in your bar, and set goals for your bar.

1. Average control size

Average check size is the average amount spent per customer. It is calculated by dividing the total revenue by the number of customers: (,000 / 0) = 20. In this case, each customer spends an average of on food and beverages. When you have a high average check size, that means most people are spending a lot of money in your bar; When you have a low average check size, it means people aren’t spending as much money or at least not regularly. Knowing what your bar’s average check size helps you understand how much your customers are spending and allows you to determine if what you’re charging for drinks is reasonable for them.

Calculating the average check size can help you get an idea of the quantity of your customers and whether what you charge for drinks is reasonable for them. It’s important to keep in mind that your average check size will change depending on the time of year (businesses tend to do best during holidays), the day of the week, and even the season.

2. Daily sales per square foot

Calculating daily sales per square foot is a quick and easy process that allows you to compare your bar’s sales performance with other establishments in the area.

• Take a day’s total revenue and divide it by your bar’s total square footage, including outdoor seating if applicable.
• The result will be an average number of dollars in sales per square foot for that particular day.

For example: ,000 / 4,000 = 0 / square feet.

3. average price of drinks per shift

You can calculate the average drink price per shift by multiplying the total sales for each shift by the number of drinks sold, dividing that total by 2, and then finding the average selling price.

For example, if you have ,000 in total sales and 200 drinks were sold, your average drink price would be (1,000/200) * .50 = .40 per drink.

This metric is useful for understanding how much profit you’re making from each sale – the higher this number compared to other metrics like cost per item and markup percentage (which we’ll cover later), the better off you will be financially.

4. Average number of drinks per shift

The average number of drinks per shift is calculated by dividing the total number of drinks sold by the total number of changes. This information is helpful in understanding how many drinks you need to sell per shift to meet your sales goals.

For example, if you sell 25 beers and 4 shots during an 8 hour shift, your average number of drinks would be (25 + 4) / 8 = 3.125. This means that on average, each bartender sells 3 alcoholic drinks per hour!

Another way to calculate the average number of drinks per shift is to divide the total number of drinks sold by the total hours worked. This information can be used to determine how many drinks you need to sell per hour to meet your sales goals.

For example, if you sold 25 beers and 4 shots during an 8-hour shift, your average number of drinks would be (25 + 4) / 8 = 3.125.

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5. mix of food and drink sales

The mix of food and drink sales is an important metric for bars and restaurants. It tells you how much of your income comes from food, versus alcoholic beverages.

It’s calculated by dividing total food sales by total overall sales, which gives you a percentage.

If you have 50% of your customers ordering dinner, they eat at least half of their meals there – which means they can also buy other items like drinks or dessert while they dine.

6. Bar Gross Margin Analysis

Gross margin is a key metric you need to track for your bar if you want to make a profit. Gross margin Measures how much money you make on each unit sold, and it’s important because it shows how effectively you sell your products.

Gross margin is calculated by dividing revenue by cost of goods sold (or COG). If a bottle costs and sells for , the gross margin is 50%. If a drink costs and sells for , the gross margin is 67%.

However, gross margin isn’t the only metric you should be tracking. You should also consider operating expenses and other costs, such as rent and labor. If your gross margin is low but your operating expenses are high, then it may not matter how much you earn from each sale.

7. Food cost percentage bar

Calculate the cost of each food item and divide by the total food sales.

For example, if you have a sandwich that costs and your bar sold 100 sandwiches that week, your cost percentage would be 8/100 = 0.08 or 8%.

Foods not included in this calculation include: soft drinks, alcoholic beverages, candy/snacks, and condiments (soda syrup).

If you are using an accounting software system, you may have the ability to calculate the food cost percentage. For manual calculations, divide the total cost of food by the total amount of sales of those items.

8. Beverage Cost Percentage

The beverage cost percentage is the cost of your bar compared to the cost of your beverages. It’s a way for you to easily see if your bar is profitable and if you have an opportunity to cut costs or sell to make more money.

Many bars use a formula that takes beverage costs as a percentage of overall sales (the “b/s” ratio) as an indication of how profitable their business is. If that number is too high, it means they’re not making enough profit on each drink – or they could be losing money when they include things like payroll and utilities in their total cost per drink.

A good b/s ration is between 40 and 60%, so if yours is over 60%, consider changing your pricing structure or cutting back on some extras like free snacks or entertainment until you get it. ‘get where it should be!

9. Bar percentage of labor costs

This is the ratio of bartender salaries to total bar sales. To calculate, you’ll need to know what percentage of your total sales goes to labor costs (and then multiply by the amount you pay your employees in salary).

For example: if you make a million dollars in sales and pay your bartender ,000 a year, 50% of those profits go to pay that bartender’s salary. So if a bar has a higher percentage than that, it means they’re spending more than they should on their staff; If it has a lower figure – according to 40% – it means they get away with not paying enough for their staff!

It’s not always an easy metric to get your hands on, but if you have the ability to do it, it can be very useful.

For example: if a bar has a high ratio of bartender salaries to total bar sales (say, 50%), then they are spending more than they should on their staff; If it has a lower figure – according to 40% – it means they get away with not paying enough for their staff!

The above metrics can help you see how your bar is doing.

The above metrics can help you see how your bar is doing. Tracking these metrics will give you a better idea of how to improve your bar and also whether or not to pay off. Remember that many people track these metrics on a daily basis, so if a competitor is tracking them as well, be sure to pay attention to what they are doing!

You can see if there is an increase or decrease in sales over time. This will let you know if your efforts to upgrade your bar were successful or not. If you notice that sales are down, it could be due to competition from other bars in the area or just bad weather for that season.

Conclusion

We hope this post has given you some ideas on how to track your bar’s performance. If you are looking for a more in-depth look at the above measures and how they can help your business, please contact us today!