Unlock the 7 key performance indicators of your Zaxby franchise

Introduction

As a Zaxby franchisee, it’s important to understand your restaurant’s seven KPIs. By tracking and calculating these metrics, you gain a better understanding of your business’ financial performance, as well as other vital indicators. In this blog post, we’ll explore the KPIs you need to focus on and how to track and calculate them.

The seven KPIs you should track are:

• Sales volume
• Sales growth
• Cost control
• Food quality
• Order accuracy
• Customer’s purchase
• Loyalty of the clientele

Let’s take a look at each of these KPIs and how you can track and calculate them to ensure your business is reaching its full potential.

Sales volume

Definition

Sales volume is a measure of the total amount of sales generated by a Zaxby franchise over a given period. It is usually expressed as a dollar amount or a number of units sold.

Benefits of Tracking

Tracking sales volume can help Zaxby franchise owners determine the overall health and success of their business. It can also be used to compare performance between locations and to predict future sales. Additionally, tracking sales volume can be used to identify which products or services are selling the best, allowing the franchisee to adjust their inventory and pricing accordingly.

Industry Benchmarks

Industry benchmarks for sales volume vary depending on the type of business and location of the franchise. However, most Zaxby franchises should aim for sales volume at least 20% higher than the industry average.

How to calculate

Sales volume can be calculated by increasing the total sales generated by a Zaxby franchise over a given period. This is usually done by taking the total revenue generated during that period and subtracting any discounts or refunds given to customers. The resulting figure is the sales volume.

Calculation example

For example, a Zaxby franchise had total sales of 0,000 in July and gave customers discounts and refunds totaling ,000. This month’s sales volume would be calculated as follows:

Tips and Tricks for Tracking the KPI

• Track sales volume on a weekly or monthly basis.
• Compare sales performance between locations.
• Identify the products and services that are selling the best.
• Adjust inventory and prices accordingly.

Sales growth

Definition

Sales growth is a key performance indicator (KPI) that tracks the increase or decrease in sales revenue from period to period. It is an important metric for franchisees to measure and track their sales growth over time.

Benefits of Tracking

Tracking sales growth allows franchisees to measure the success of their business over time. It can be used to compare the performance of different locations and to identify areas for improvement. By tracking sales growth, franchisees can make informed decisions on how to improve their business and increase their profits.

Industry Benchmarks

The industry benchmark for sales growth varies by business type. However, a general rule of thumb is that a healthy business should aim for a sales growth rate of at least 5% year-over-year.

How to calculate

The formula for calculating sales growth is:

Calculation example

For example, if a Zaxbys franchise had sales of 0,000 in the previous month and sales of 5,000 in the current month, their sales growth rate would be calculated as follows:

Tips and Tricks for KPIs

• Set goals for sales growth and track progress over time.
• Implement strategies to increase sales, such as offering discounts or promotional offers.
• Analyze customer data to identify trends and opportunities for sales growth.
• Monitor competitor performance and adjust strategies accordingly.

Cost control

Definition

Cost control is a KPI metric used to track and monitor the money spent while operating a Zaxbys franchise. It measures how well the company manages expenses, such as labor and materials, to ensure they are within their budget.

Benefits of Tracking

• It helps identify and resolve overspending areas.
• It allows for better resource management.
• It allows for better budgeting and forecasting.

Industry Benchmarks

The industry benchmark for cost control is a ratio of total costs to total revenues. This ratio should remain below 1.0, which means total costs should be less than total revenue. If the ratio is greater than 1.0, it indicates that the company is spending too much and needs to adjust its expenses accordingly.

How to calculate

Cost control can be calculated by dividing total costs by total revenues, expressed as a percentage. The formula is:

Calculation example

For example, if a Zaxbys franchise has a total cost of ,000 and a total revenue of ,000, their cost control would be:

Tips and Tricks for KPIs

• Make sure the budget is realistic and achievable.
• Track spending regularly to identify areas of overspending.
• Adjust expenses accordingly to ensure that the cost control rate remains below 1.0.

Food quality

Definition

Food quality is a key performance indicator (KPI) used to measure the level of customer satisfaction with the food served by a Zaxby franchise. It is a measure of how well a franchise meets customer expectations in terms of taste, presentation, freshness and other food quality factors.

Benefits of Tracking

• Food quality is an important measure of customer satisfaction, which can affect the overall success and profitability of a franchise.
• Tracking food quality can help identify areas for improvement and provide feedback to staff on how they can better serve their customers.
• Tracking food quality can also help a franchise gauge the effectiveness of new menu items, specials, and promotions.

Industry Benchmarks

The industry benchmark for feed quality is usually set at 85% or higher. This means that 85% or more of customers should rate the food served by a franchise as good or better. Anything less than this indicates that the franchise may need to adjust its recipes, improve its processes, or provide additional staff training.

How to calculate

Food quality can be measured by tracking customer feedback through surveys or comment cards. The KPI formula for measuring food quality is as follows:

Calculation example

For example, if a franchise receives 100 customer surveys and 90 of them rate the food quality as satisfactory or better, the food quality KPI would be 90%.

Tips and tricks

• Encourage customers to provide feedback on their experience, either through surveys or comment cards.
• Regularly review customer feedback to identify areas for improvement and make adjustments accordingly.
• Provide additional training to staff to ensure they consistently provide high quality food.
• Reward employees for providing excellent customer service and food quality.

Order accuracy

Definition

Order accuracy is the KPI that tracks the accuracy of how a restaurant delivers the order placed by the customer. This metric is used to measure the efficiency of store staff and the accuracy of orders processed.

Benefits of Tracking

Tracking order accuracy is an important metric for Zaxby franchise owners because it helps them identify areas for improvement in restaurant operations and customer service. By tracking this metric, owners can ensure that customers receive their orders accurately and on time.

Industry Benchmarks

The industry standard for order accuracy is usually between 95 and 100%. A score of 95% or higher would be considered good, while anything below 95% is considered suboptimal.

How to calculate

Calculation example

For example, if the store received 10 orders and 8 of them were delivered on time and correctly, the order accuracy for that store would be:

Tips and tricks to improve the KPI

• Train employees on order accuracy and proper order taking procedures.
• Implement processes to ensure order accuracy, such as double checking orders before being sent.
• Use technology, like an online ordering system, to help streamline the ordering process.
• Encourage customer feedback to ensure orders are accurate and served on time.

Customer’s purchase

Definition

Customer acquisition is a key performance indicator (KPI) used by Zaxby franchises to measure the rate at which new customers are brought into their business. It is a measure of the success of the franchise’s marketing and customer acquisition efforts.

Benefits of Tracking

Tracking customer acquisition is an important part of any business. It allows Zaxby franchises to understand the effectiveness of their marketing efforts and measure the success of their customer acquisition strategies. By tracking customer acquisition, Zaxby franchises can make more informed decisions about how best to allocate their resources.

Industry Benchmarks

It is important to compare the performance of a Zaxby franchise to industry benchmarks. This gives a good indication of how the franchise is doing compared to other Zaxby franchises. The industry benchmark for customer acquisition is typically around 5-7%.

How to calculate

Customer acquisition can be calculated using the following formula:

Calculation example

For example, if a Zaxby franchise had 200 new customers and a total of 1,000 customers during a given period, the customer acquisition rate would be calculated as follows:

Tips and Tricks for KPIs

There are a few tips and tricks that can help Zaxby franchises maximize their customer acquisition rates. These include:

• Be sure to track customer acquisition over time to identify trends and patterns.
• Analyze data to identify the most effective marketing channels and strategies.
• Focus on providing excellent customer service to retain current customers and attract new customers.
• Offer incentives and discounts to encourage repeat business and attract new customers.

Loyalty of the clientele

Definition

Customer retention is a measure of the number of customers retained by a business or organization over a period of time. This metric helps in evaluating customer loyalty, customer satisfaction, and customer lifetime value. This is an important KPI for Zaxby franchise owners as it provides insight into how they are engaging customers and can help them increase profitability.

Benefits of Tracking

By tracking customer retention, Zaxby franchise owners can better understand how they are meeting customer needs. It can also help them identify areas for improvement, such as offering more competitive prices, providing better customer service, or improving product quality. Additionally, customer retention tracking can help Zaxby franchise owners better understand their customer base and target marketing efforts.

Industry Benchmarks

The average customer retention rate for the restaurant industry is around 70%. This means that the majority of customers will return to the same restaurant more than once. Zaxby franchise owners should strive to meet or exceed this benchmark. Additionally, they should monitor customer retention rates over time to ensure they are meeting the needs of their customers.

How to calculate

The customer retention rate is calculated by dividing the number of customers who return to the same restaurant or franchise by the total number of customers who visited the restaurant or franchise during a given period. The following formula can be used:

Calculation example

For example, if a Zaxby franchise had 100 customers in the last month and 80 of those customers returned for a second visit, the customer retention rate would be 80%.

Tips and tricks

• Regularly monitor customer retention rates to ensure customers return to the same restaurant or franchise.
• Develop customer loyalty programs to encourage customers to return to the same restaurant or franchise.
• Focus on providing excellent customer service to ensure customers return.
• Offer customer discounts and promotions to increase customer loyalty.

Conclusion

Tracking and calculating KPIs for your Zaxby franchise is an important step in ensuring your business is operating at its full potential. The seven KPIs you need to focus on are sales volume, sales growth, cost control, food quality, order accuracy, customer acquisition, and customer retention. By understanding how to track and calculate these metrics, you gain a better understanding of your company’s financial performance and other key metrics.