14 Restoring KPI metrics to track

KPIs help business owners track their restaurant’s performance, but they can be difficult to understand. In this article, we will discuss what a KPI is and how you can use it to your advantage as a restaurateur.

1. Average control size

Average check size is a key metric to track. This is the average amount spent by customers in a restaurant, and it can help you determine if your menu prices are too high or low.

In order to calculate the size of the average check, divide the total revenue by the number of guests served.

For example, if an establishment serves an average of 100 people on a weeknight and earns million in gross sales during that period (which includes food and beverage sales), its average check would be calculated as follows:

• million / 100 = per person
• 10x10x10x100 = 10^6 dollars/person

The average check size formula can be applied to any business that charges a fee for its services. It could be used to determine the profit margin on an hourly basis, as well as the employee amount.

For example, if an employee earns per hour and works 40 hours per week, then their annual salary would be calculated as follows: x 40 = 0/week x 52 weeks = ,800 per year

2. Employee turnover rate

Employee turnover rate is a key metric that can help you gauge your restaurant’s efficiency. The employee turnover rate indicates how many employees leave your company in a given period, which can be costly if they leave because they are unhappy or dissatisfied with their jobs. A high employee turnover rate can also be indicative of an unhealthy work environment, where workers do not feel valued or respected by their employers.

The general rule for calculating an employee’s average tenure with a company is 1 year per every 2 to 3 years (or more). This means that if someone leaves after 1 year on average but returns after 3 years, their average tenure would still total 2-3 years – not any time away from work due to vacation or sick leave. If someone leaves after 3 years on average but comes back later with another job offer before retiring at age 65 (which is when most people reach retirement), then their overall tenure will actually be closer to 3 + 2 = 5 years in total instead of just 4 + 1 = 5

3. Average gross profit margin

Gross margin is the amount of money a business earns from every dollar of sales. It’s measured by dividing gross profit by revenue, and it’s an indicator of how effectively a company is managing its costs.

If you run a restaurant, your gross profit margin would be calculated like this:

Gross Profit = Gross Sales – Cost of Goods Sold (COGS) + Other Operating Expenses

The formula basically tells you how much revenue your business generates is profit and helps you compare your margins with competitors.

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4. Cost of Goods Sold

Cost of Goods Sold (COG) is one of the most important KPIs to track. It represents the cost of all food and beverages sold, labor costs incurred by your restaurant staff, and all other overhead costs associated with preparing and selling meals in your establishment. This number can be divided into two main categories:

• food ingredients
• Work

Work is one of the largest components of COGs, and it’s also one of the most important to track. Labor costs include wages for all employees, including managers, and any overtime wages. You can break down labor costs into even smaller categories by tracking the hours worked by each employee and their respective hourly rate.

5. Customer retention rate

Customer retention rate is a key KPI for restaurants. It can be calculated by dividing your new customer acquisition rate by your overall loss (or churn).

The higher the retention rate, the more likely customers will come back to visit on future visits. A high retention rate means you have an established customer base and are doing something right! And if you want more customers, having a solid base means you have success stories to tell potential customers or investors about how things are going at your restaurant.

6. Average revenue per available seat hour

This is an important metric to track because it shows how much revenue you are generating per available seat. It is calculated by dividing total revenue by the number of seats occupied. The higher the Ar-asah, the better your restaurant is.

7. Income per hour worked

Revenue per labor hour (RPLH) is a metric used to track your restaurant’s labor cost efficiency. This helps you determine how much each employee is costing you and whether they are worth more than other workers in similar positions.

The formula for calculating the RPLH is as follows:

Earnings per hour worked = Earnings – Cost of Goods Sold – Labor

This means that if your restaurant sells 0 worth of food but pays its employees per hour (/hour x hours worked), its RPLH would be 50%. If he had only paid them per hour (/hour x hours worked), his RPLH would be 33%.

8. Average tickets per table per hour

This metric is an indicator of how busy your restaurant is and therefore how much money you are earning. If you have fewer customers than the industry average, it’s probably because your food isn’t as good or cheap to attract a crowd. Conversely, if you pack them like sardines and bring home the bacon, you’re doing something right! A high average ticket price per hour can be a sign that there’s something special about your establishment (like great service) that keeps people coming back for more (and more).

9. Number of tables turned during a service period

Your number of tables turned during a service period is the total number of tables that are turned during a service period. This metric can be calculated in two ways:

Number of tables turned during a shift = Total number of table turns * Number of seats, or Number of tables turned per shift per server = Total number of table turns / # of turns per day / # of servers on shift

10. The table rotates per team per server

This metric is a measure of the number of tables your server can rotate during a change. Tracking is important because it helps you understand how efficient your staff are at getting tables cleaned and ready for the next guests. The higher this number, the better your servers are at getting customers served and out of their seats as quickly as possible!

11. Table d’hôtes waiting time

Table d’hôtes wait time is a key metric to track, especially if you have a busy restaurant. Restaurants that serve quick meals and drinks can see wait times of over two minutes, while those that serve more elaborate dishes will see much higher waits (up to five minutes). If every customer has to wait more than 3 minutes before being seated, that’s an indication that there may be something wrong with the way your staff does their job!

The average table d’hôtes wait time depends on several factors: peak versus non-peak times, weather conditions, and special holidays/events like New Year’s Eve dinners or Saint’s Day brunches. -Valentine.

12. Average waiting time before placing a client

The average wait time Before you seat a customer is the average time a customer waits before being seated. This is an important KPI to track because it can help you determine if you are consistently meeting your customers’ needs and expectations or if there are areas for improvement that need to be addressed.

The average wait time to seat a customer will vary depending on the types of guests who visit your restaurant.

For example, if most people come at lunchtime and want to eat immediately, then the wait time would be much shorter than for those who come at dinnertime looking for more dining experiences. quietly (or even those that occur just your establishment).

13. Food cost percentage and beverage cost percentage

These metrics are used to calculate an average food cost percentage for each restaurant’s menu items. The purpose of this metric is to give you an idea of how much money you’re spending on food, so you can make informed financial decisions about your menu design, staffing levels, and operations.

Food cost percentage = Total food purchased – Total menu items sold – average prices per item (incl. sales tax)

Beverage Cost Percentage = Total Beverage Purchased – Total Non-Alcoholic Beverages Served (Excluding Coffee)

14. Revenue Item Type by Menu

Revenue type per menu is a great way to get an idea of your revenue per menu item type. You can also use this metric to compare revenue for the same period last year, or any other period you choose.

Revenue per Menu Item Type: This is one of my favorite KPI metrics because it gives me a better idea of how much money we are making from each item on our menu.

For example, if we sell chicken wings for each and hamburgers for each (and there are no discounts), then our total revenue would be per order, but if we We only sell chicken wings and burgers (or something else entirely), so our total sales would be just under per order! It’s almost double!

It’s quite easy to calculate this metric using Google Sheets or Excel, just add up all your orders by product type over time periods (eg three months) and divide by the number of orders received in those delays (for example, 5). Then multiply by 100 so you can show percentages instead of raw numbers.

Conclusion

If you’re looking to improve your restaurant’s performance, it’s important to track the right KPIs. By tracking these key metrics consistently over time, you’ll be able to identify trends and take action on what needs improvement.

A good starting point is to measure customer satisfaction. This will tell you how customers feel about their experience at your restaurant or business overall and can help identify issues that need attention. Customer satisfaction is an important part of cost management because if people aren’t happy with their experience at your establishment, they won’t return or recommend it as often, which can lead to lower sales in his outfit.