How to Measure the Success of an Epic Wings Franchise

Introduction

Running an Epic Wings franchise can be a challenging but rewarding experience. Having an understanding of the Key Performance Indicators (KPIs) needed to measure success is critical to achieving and sustaining that achievement.

The following seven metrics are the most important KPIs for Epic Wings franchises. Each explains why effective tracking and calculation is essential for ongoing business success.

• Customer Satisfaction Score
• Food profitability
• Average turnover time
• Average Customer Spend
• Customer repeat visit rate
• It’s time to make a new franchise work
• Employee satisfaction and retention score

Customer Satisfaction Score

Definition

Customer Satisfaction Score (CSAT) is a metric used to track customer satisfaction with a company’s product or service. It is typically measured using a customer survey that asks customers to rate their satisfaction on a scale of 1-5 or 1-10. The higher the score, the higher the customer experience.

Benefits of Tracking

Tracking customer satisfaction score is important for businesses as it can help them identify areas for improvement and measure customer loyalty. Additionally, tracking customer satisfaction score over time can provide valuable insight into customer sentiment and trends.

Industry Benchmarks

The industry benchmark for customer satisfaction score varies by industry. Generally, a customer satisfaction score of 8 or higher is considered excellent, while a score of 5 or lower is considered poor. It is important to note that customer satisfaction scores can vary widely from industry to industry.

How to calculate

The customer satisfaction score can be calculated by taking the average of all customer responses in the customer survey. For example, if the customer survey asks customers to rate their satisfaction on a scale of 1 to 5, the average customer satisfaction score can be calculated by adding up all responses and dividing by the total number of responses.

Calculation example

For example, if a customer survey received 50 responses, with a total score of 350, the customer satisfaction score would be 7 (350/50 = 7).

Tips and tricks

• Be sure to include all customer responses in the calculation, including negative responses.
• Keep track of customer satisfaction score over time to identify trends and areas for improvement.
• Use customer feedback to make changes that will improve customer satisfaction.

Food profitability

Definition

Food profitability (FCE) is a key performance indicator (KPI) that measures a restaurant’s ability to control and reduce the cost of food relative to its sales. This is one of the most important KPI metrics for a restaurant because food cost has a direct impact on the overall profitability of the business.

Benefits of Tracking

Tracking food profitability allows restaurant owners to identify potential areas for improvement and adjust their strategies accordingly. It also helps them make informed decisions about menu pricing and food cost management. Additionally, tracking FCE allows restaurant owners to benchmark their performance against industry benchmarks and measure the success of their cost reduction initiatives.

Industry Benchmarks

The average industry benchmark for food profitability is 28-32%. The ideal benchmark for FCE is around 30%, but this can vary depending on the type of restaurant. For example, high-end restaurants may have a higher FCE, while fast casual restaurants may have a lower FCE.

How to calculate

The formula for calculating feed profitability is as follows:

Calculation example

For example, if a restaurant has food costs of ,000 and sales of ,000, its food profitability is 33.3%.

Tips and tricks

• Track FCE regularly to identify trends and areas for improvement.
• Monitor and adjust menu prices to ensure competitive advantage.
• Implement cost-saving measures such as reducing portion sizes and optimizing inventory.
• Use technology to streamline food cost tracking and calculations.

Average turnover time

Definition

Average Turnaround Time is a KPI used to measure how quickly a service or product is completed and delivered. It is used to assess a company’s performance and its ability to meet customer demands. Average revenue lead time is calculated by taking the total number of days it took to complete and deliver the products or services and dividing it by the total number of products or services completed and delivered.

Benefits of Tracking

• Monitor business performance and ability to meet customer demands
• Compare a company’s performance against industry benchmarks
• Provide insight into how quickly the business completes and delivers products or services

Industry Benchmarks

The average turnaround time for a business in the quick service restaurant industry is typically between four and six days. For a company in the automotive sector, the average turnover time is usually between five and seven days.

How to calculate

Average turnover time = total number of days to complete and deliver / the total number of products or services completed and delivered

Calculation example

If a company completes and delivers five products in a total of twenty days, the average turnaround time would be four days. The calculation is as follows:

Tips and tricks

• Regularly monitor average turnaround time to track performance and identify areas for improvement
• Set realistic goals for average turnaround time and track progress toward those goals
• Analyze data to determine if process or procedure changes need to be made

Average Customer Spend

Definition

Average customer spend (ACS) is a key performance indicator (KPI) that measures the total amount a customer spends over a period of time divided by the total number of customers in the same period.

Benefits of Tracking

ACS tracking can provide insight into a company’s financial performance and the impact of marketing campaigns on customer behavior. By understanding the average amount spent, businesses can allocate resources more efficiently and plan more effective marketing strategies and promotions.

Industry Benchmarks

Industry benchmarks for ACS vary depending on the type of business. For example, in the restaurant industry, average customer spending is typically between and per visit. In the retail industry, the average customer spend is typically between and .

How to calculate

ACS is calculated by dividing the total amount spent by customers over a certain period of time by the total number of customers in the same period. The formula is:

Calculation example

For example, if a business has a total of 100 customers in a month, and the total amount spent during the same period is ,000, the average customer spend for that month would be:

Tips and tricks

• Tracking SAC regularly can help businesses identify trends in customer spending and adjust their marketing strategies accordingly.
• Measuring CA in different geographic regions can provide insight into which regions are more profitable.
• Comparing the ACS of new customers to existing customers can help companies understand the impact of their marketing campaigns.

Customer repeat visit rate

Definition

Customer repeat visit rate is a KPI (key performance indicator) used to measure the percentage of customers who have visited a restaurant multiple times. This is a measure of customer loyalty, as it shows how often customers choose to return to the restaurant.

Benefits of Tracking

Tracking customer repeat visit rate is a great way to measure customer loyalty and gauge customer satisfaction. It is also useful for understanding the most effective marketing strategies to bring customers back to the restaurant. It can also provide insight into which menu items are most popular and which customers are most likely to return.

Industry Benchmarks

The industry benchmark for repeat customer visitation rate varies from restaurant to restaurant. Generally, a rate of 50-60% is considered good, while a rate of 70-80% is considered excellent.

How to calculate

The repeat customer visit rate can be calculated by dividing the number of customers who visited the restaurant repeatedly by the total number of customers who visited the restaurant:

Calculation example

For example, if a restaurant had 500 customers in the last month and 200 of those customers visited multiple times, the repeat customer visit rate would be 40%:

Tips and tricks

• Encourage repeat visits by offering loyalty programs or discounts for returning customers.
• Survey customers to find out why they come back or why they don’t.
• Provide excellent customer service to ensure customers have a good experience and want to return.

It’s time to make a new franchise work

Definition

The Time to Operate a New Franchise KPI measures the time taken to get a new franchise operational. It includes the time taken to obtain a franchise agreement, complete registration, obtain necessary licenses and open the business.

Benefits of Tracking

This KPI is important for franchise owners to measure the effectiveness of their processes when setting up a new franchise. It can help identify areas where the process can be streamlined or improved to reduce the time taken and cost of setting up a new franchise.

Industry Benchmarks

The industry benchmark for this KPI is typically three to six months. However, this may vary depending on the franchise, industry, and complexity of the process.

How to calculate

Calculation example

For example, if the franchise agreement was signed on April 1 and the business opened on June 15 and two franchises were opened during this period, the KPI would be calculated as follows:

KPI Tips and Tricks

• Make sure all the documents required for setting up a franchise are in order and up to date.
• Set internal deadlines for each step of the process.
• Streamline processes where possible to reduce time taken.
• Regularly monitor the KPI to identify areas for improvement.

Employee satisfaction and retention score

Definition

The employee satisfaction and retention score is a key performance indicator (KPI) that measures how well an organization retains its employees and how satisfied they are with their jobs. It takes into account factors such as employee turnover rate, job satisfaction, motivation and commitment. This score can be used to gauge the effectiveness of a company’s recruitment, retention, and motivation initiatives.

Benefits of Tracking

Tracking employee satisfaction and retention score is important for any organization. It provides insight into how a company is doing in terms of retaining and motivating its employees. It also helps identify areas for improvement, such as improved job satisfaction or increased motivation. Tracking this KPI can also help identify potential issues that could affect employee retention, such as lack of job security or inadequate training.

Industry Benchmarks

The industry benchmark for employee satisfaction and retention score varies depending on the type of industry and the size of the organization. Generally, a good score would be 80-90%. Anything less than this indicates potential issues with employee retention and motivation.

How to calculate

The employee satisfaction and retention score can be calculated using the following formula:

Or:

• Retention rate = percentage of employees who stay with the organization in a given period
• Job satisfaction = the percentage of employees who are satisfied with their job

Calculation example

Let’s say an organization has an 80% retention rate and a 90% job satisfaction rate. The employee satisfaction and retention score would be calculated as follows:

Tips and tricks

• Collect employee feedback regularly to measure job satisfaction.
• Provide incentives for employees to stay with the organization for a longer period.
• Encourage employees to be engaged and motivated at work.
• Analyze the collected data to identify any potential areas for improvement.

Conclusion

Taken together, the top seven Epic Wings Franchise KPIs paint a critical picture of each franchise’s success. Each of these metrics should be accurately tracked and calculated regularly to assess and identify areas for improvement. A strong understanding of these KPIs helps keep epic wing franchises on the path to success.