Analyze Whataburger franchise KPI metrics

Introduction

Whataburger is a Texas-based food franchise popular for its unique and delicious menu items. Owned and operated by over 150 franchisees, this popular fast food chain has been in business since 1950. To ensure the continued success of its franchisees, Whataburger requires each owner to track and report key performance indicators (KPIs).

These KPIs provide valuable insight into overall franchise performance, allowing Whataburger to identify areas for improvement, determine the success of new initiatives, and make informed decisions about the direction of their business. In this blog post, we’ll discuss the seven key Whataburger KPI franchise metrics – how to track and calculate them – so you can better gauge your own franchise’s performance.

• Client satisfaction
• Food quality
• Foodservice turnaround time
• Cost of goods sold as a percentage of revenue
• Labor costs as a percentage of revenue
• Marketing effectiveness
• Revenue increase

Client satisfaction

Definition

Customer satisfaction is a measure of how satisfied customers are with the products and services provided by a business. It is a key performance indicator (KPI) for evaluating the overall quality of a company’s customer service.

Benefits of Tracking

Tracking customer satisfaction is important for any business because it allows you to identify areas where improvement is needed. It also helps you understand what customers value and what they are looking for in terms of service. By tracking customer satisfaction, you can also measure your performance against competitors and industry benchmarks.

Industry Benchmarks

Industry standards for customer satisfaction vary by business type and industry. Generally, a customer satisfaction score of 80-90% is considered excellent, 70-80% is considered good, and anything below 70% is considered bad.

How to calculate

Calculation example

For example, if a Whataburger franchise had 100 customers and 85 of them were satisfied, the customer satisfaction score would be 85%.

Tips and Tricks for KPIs

• Regularly check customer feedback and reviews for areas of improvement.
• Create surveys to collect customer feedback.
• Monitor customer satisfaction trends to identify any changes in customer needs or expectations.
• Provide incentives to encourage customers to provide feedback.
• Analyze customer satisfaction data to identify areas for improvement.
• Provide customers with prompt and efficient customer service.

Food quality

Definition

Food quality is a measure of the taste, freshness and overall satisfaction of the food served by a Whataburger franchise. This is an essential metric to consider when evaluating the success of a restaurant or franchise.

Benefits of Tracking

Tracking food quality provides insight into customer satisfaction and can help a franchise identify areas for improvement. By monitoring food quality, a franchise can identify any food issues and make adjustments to provide customers with a better experience.

Industry Benchmarks

The industry benchmark for food quality is usually a score of 7 out of 10. A score of 7 is considered average and is generally standard for most Whataburger franchises.

How to calculate

The food quality metric is calculated by taking the average score of customer feedback on food quality. The score can be obtained from customer surveys, reviews, or other feedback methods. The average score is then used to determine the franchise’s overall food quality.

Calculation example

For example, if a Whataburger franchise receives 100 customer feedback surveys and the average score is 7.5, the food quality metric for the franchise would be 7.5.

Tips and tricks

• Gather customer feedback regularly to get an accurate assessment of food quality.
• Analyze customer feedback to identify any areas of improvement.
• Make adjustments to improve customer satisfaction.

Foodservice turnaround time

Definition

Foodservice turnaround time (FSTT) is a metric that measures the time it takes for a customer’s order to be completed and served. This metric is important for Whataburger franchise owners because it provides insight into the efficiency of their operations and can be used to identify opportunities for improvement.

Benefits of Tracking

Food Service Lead Time Tracking (FSTT) can help Whataburger franchise owners identify areas of their operations that are inefficient and need improvement. Additionally, this metric can help them make better staffing decisions by understanding how many employees they need to ensure quick turnarounds. Finally, tracking this metric can help them identify other opportunities for improvement, such as streamlining their processes or providing better customer service.

Industry Benchmarks

The average FSTT for Whataburger franchises is usually around 2.5 minutes. However, this may vary depending on the size and complexity of the orders. Additionally, larger franchises may have longer turnaround times due to the complexity of their operations.

How to calculate

To calculate the food service turnaround time (FSTT), you will need to subtract the customer’s order time from when the order was completed and served. The formula for this calculation is:

Calculation example

For example, if a customer orders a burger at 12:00 p.m. and the order is completed and served at 12:02 p.m., the food service turnaround time would be 2 minutes. The formula for this calculation is:

Tips and tricks for calculating the KPI

• Track customer orders throughout the day to get an accurate picture of your FSTT.
• Analyze the data to identify areas for improvement.
• Make sure your employees are properly trained and have the tools they need to complete orders.
• Provide feedback and incentives to employees to encourage them to complete orders quickly.

Cost of goods sold as a percentage of revenue

Definition

Cost of goods sold as a percentage of revenue (COGS%) is a metric used to measure a company’s cost of goods sold relative to its total revenue. This metric is used to track the profitability of a business and is calculated by dividing the total cost of goods sold by total revenue.

Benefits of Tracking

Tracking COG% is important for any business because it provides insight into the cost it costs to produce products or services. This metric helps companies better understand their cost structure and identify areas for improvement. Additionally, tracking this metric can help companies identify when there is an increase in costs that could be impacting profitability.

Industry Benchmarks

The industry benchmark for COGS% varies by business type. Generally, more labor-intensive companies have a higher COGS than those that are capital-intensive. For example, a restaurant’s COGS is typically higher than a manufacturing center’s COGS.

How to calculate

COGS% can be calculated by dividing the cost of goods sold by total revenue and multiplying the result by 100. The formula is as follows:

Calculation example

For example, if a company has total revenue of ,000,000 and the cost of goods sold is 0,000, the COGS% would be 30%. This can be calculated using the following formula:

Tips and tricks

• Tracking COG% can provide insight into how effectively a company is managing its costs.
• It is important to compare a company’s COGS to industry benchmarks to ensure it is in line with competitors.
• COGS% can also be tracked over time to identify changes in cost structure and profitability.

Labor costs as a percentage of revenue

Definition

Labor cost as a percentage of revenue is a key performance indicator (KPI) that measures the amount of money spent on labor relative to the total revenue generated by a business. This metric is useful for understanding the costs associated with labor and the organization’s effectiveness in managing these costs. It is important for Whataburger franchise owners to track this metric in order to make informed decisions on how best to increase profits and ensure the long-term success of the business.

Benefits of Tracking

Tracking labor costs as a percentage of revenue allows Whataburger franchise owners to better understand the financial health of their business. By understanding their labor costs, owners can make informed decisions about staffing levels, wage rates, and other aspects of running their business. By tracking this metric, owners can identify areas where they can reduce costs, such as reducing work hours or increasing productivity. Additionally, tracking labor costs as a percentage of revenue can help owners identify areas of opportunity to increase revenue, such as increasing sales or implementing new marketing strategies. .

Industry Benchmarks

The industry benchmark for labor costs as a percentage of revenue varies by business type. Generally, a higher percentage indicates that the company is spending too much on labor and should look for ways to cut costs. For Whataburger franchises, the benchmark for labor costs as a percentage of revenue is typically between 20-30%.

How to calculate

Calculation example

For example, if a Whataburger franchise has a total labor cost of ,000 and total revenue of ,000, the labor costs as a percentage of revenue would be:

Tips and tricks

• Regularly review labor costs as a percentage of revenue to ensure the business is running efficiently.
• Compare actual labor costs as a percentage of revenue to the industry benchmark to identify areas of opportunity.
• Look for ways to reduce labor costs, such as increasing employee productivity or reducing work hours.
• Look for opportunities to increase revenue, such as implementing new marketing strategies or increasing sales.

Marketing effectiveness

Definition

Marketing effectiveness is a key performance indicator (KPI) that measures the effectiveness of a company’s marketing activities in generating revenue. It is calculated by dividing a company’s total marketing costs by the total revenue generated from these activities.

Benefits of Tracking

Tracking marketing effectiveness is important for any business looking to optimize marketing spend and maximize return on investment. By tracking this KPI, companies can gain valuable insight into the impact of their marketing activities. This information can then be used to make decisions about where to allocate resources, which campaigns are most effective, and which areas need more attention.

Industry Benchmarks

The industry benchmark for marketing effectiveness varies depending on the type of business and the industry in which it operates. Generally speaking, businesses should aim for marketing effectiveness of at least 3:1, meaning they generate at least three times more revenue than their total marketing costs. However, some industries may have higher benchmarks, such as 5:1 or 10:1.

How to calculate

To calculate marketing effectiveness, simply divide a company’s total marketing costs by the total revenue generated from these activities:

Calculation example

For example, if a company spends ,000 on marketing activities and generates ,000 in revenue from these activities, its marketing effectiveness would be 3:1.

Tips and tricks

• Regularly monitor your marketing effectiveness to ensure that you are getting the most out of your marketing budget.
• Compare your marketing effectiveness against industry benchmarks to ensure you are meeting the standard.
• Analyze your marketing efforts to identify areas for improvement and adjust your strategy accordingly.

Revenue increase

Definition

Revenue growth is a key performance indicator (KPI) that measures the percentage increase or decrease in a company’s revenue over a certain period of time. It is an important metric for assessing the financial health of a business, as it indicates the success of various strategies and initiatives.

Benefits of Tracking

Tracking revenue growth is essential for any business. It helps identify and measure revenue trends, which can be used to make informed decisions about operations and improve efficiency. Additionally, tracking revenue growth can help identify areas of opportunity for further growth and expansion.

Industry Benchmarks

Industry benchmarks for revenue growth can vary widely depending on the industry in which the company operates. Generally speaking, companies should strive to achieve a minimum of 5-10% revenue growth each year. However, some sectors may have higher benchmarks, such as technology and healthcare, which generally have higher growth rates.

How to calculate

Revenue growth can be calculated using the following formula:

Calculation example

For example, if a Whataburger franchise had total revenue of 0,000 in the first quarter of 2021 and 0,000 in the second quarter, the revenue growth in the second quarter would be calculated as follows:

Tips and tricks

• Track revenue growth on a monthly, quarterly, or annual basis to identify revenue trends.
• Compare revenue growth with industry benchmarks to gauge performance.
• Identify areas of opportunity for further growth and expansion.
• Regularly review and adjust strategies to ensure continued growth.

Conclusion

These seven Whataburger Franchise KPIs provide valuable insight into your restaurant’s performance. By tracking and analyzing them, you are able to identify areas for improvement, gauge the success of new initiatives, and make more informed decisions about the direction of your business.

By understanding how to track and calculate each of these metrics, you’ll be better equipped to measure and evaluate your franchise’s performance. A deeper understanding of your performance can lead to better business choices and ultimately improve the success of your franchise.