How to Track and Calculate Your Top Seven Bojangles Franchise Performance Indicators

Introduction

As a Bojangles franchise owner, there’s a lot to consider when it comes to running a successful business. It’s not enough to run your store efficiently and provide excellent customer service; You also need to track and measure your performance to maximize profitability. This is where Key Performance Indicators (KPIs) come in. Key Performance Indicators help you measure and compare your performance, giving you an indication of where your strengths and weaknesses lie.

By using KPIs, you can track and calculate the top seven Bojangles Franchise KPI metrics. This blog post will walk you through each of the KPIs and give you an overview of how to measure, track, and calculate each.

• Franchise revenue
• Franchisee satisfaction
• Sales by store
• Average ticket size
• Loyalty of the clientele
• Cost of Goods Sold
• Marketing ROI

Franchise revenue

Definition

Franchise revenue is a key performance indicator (KPI) for Bojangles franchises. It represents the total income generated by sales and other activities over a given period. This metric is important because it gives a clear picture of the success of the franchise and how it is performing against its competitors.

Benefits of Tracking

Tracking franchise revenue is important for Bojangles franchises because it can help them identify areas of strength and weakness. By tracking this metric, franchises can make informed decisions on how to improve their operations and maximize profits. Additionally, tracking franchise revenue can provide valuable insight into customer behavior and preferences, allowing franchises to better serve their customers.

Industry Benchmarks

The average Bojangles franchise generates around .2 million in revenue per year. However, this figure can vary significantly depending on the size of the franchise and its location. Therefore, it is important for each franchise to track its own revenue and compare it to industry benchmarks to ensure it is performing as expected.

How to calculate

Franchise revenue is calculated by subtracting the total costs associated with running the franchise from the total revenue generated from sales and other activities over a given period of time. The formula for calculating franchise revenue is:

Calculation example

For example, if a Bojangles franchise generated .5 million in total revenue over a one-year period and incurred 0,000 in total costs, its franchise revenue would be .2 million. This can be calculated using the following formula:

Tips and Tricks for KPIs

• Be sure to track franchise revenue regularly to ensure it is in line with industry benchmarks.
• Analyze the costs associated with running the franchise to identify potential savings areas.
• Monitor customer behavior and preferences to identify new revenue generation opportunities.
• Use franchise revenue as a measure of success and strive to continually improve performance.

Franchisee satisfaction

Definition

Franchisee satisfaction is a key performance indicator that measures how happy and satisfied franchisees are with their business. It is a metric that takes into account both the quality of products and services and the overall customer experience.

Benefits of Tracking

• It helps to identify areas for improvement within the business and opportunities to increase customer satisfaction.
• It allows the franchisor to track progress over time and make adjustments to ensure franchisees are happy and satisfied.
• It helps to increase loyalty and trust between the franchisor and the franchisees.

Industry Benchmarks

The average franchisee satisfaction rating is 8 out of 10. Some franchisors aim for at least 9 out of 10, while others aim for the highest possible score of 10 out of 10.

How to calculate

Franchisee satisfaction is calculated by taking the average of responses to a survey sent to all franchisees. The survey should ask about their overall experience, customer service, and product quality.

Calculation example

For example, if there are 50 franchisees and their average rating is 8.5 out of 10, the franchisee’s satisfaction score would be 8.5 / 50 = 0.17.

Tips and tricks

• Send surveys regularly to track progress and identify areas for improvement.
• Encourage franchisees to provide honest feedback.
• Provide incentives to franchisees to complete the survey.
• Follow up with franchisees who provided negative feedback to try to resolve their issues.

[right_ad_blog]

Sales by store

Definition

Sales per store is a key performance indicator (KPI) used to measure the average revenue generated by each unit in a franchise network.

Benefits of Tracking

Tracking sales by store is important for franchise owners to understand the financial performance of each unit in the franchise network. This KPI helps franchise owners measure the efficiency of their operations and identify areas for improvement.

Industry Benchmarks

Average sales per store for Bojangles franchises are approximately .1 million per year.

How to calculate

The formula for calculating sales per store is:

Calculation example

For example, if a Bojangles franchise has total sales of million and 10 stores, the sales per store would be:

Tips and tricks

• Regularly monitor sales by store to ensure each unit meets industry benchmarks.
• Compare sales by store in different locations to identify areas for improvement.
• Focus on increasing sales per store for underperforming units in the network.
• Look for opportunities to increase efficiency and reduce costs to maximize profits.

Average ticket size

Definition

Average ticket size (ATS) is a key performance indicator (KPI) for Bojangles franchise businesses. It measures the average cost of a single sale. It is important to track the ATS in order to understand the performance of the business in terms of customer spend and profitability.

Benefits of Tracking

• It helps to identify customer spending patterns and trends.
• It can be used to identify areas of opportunity to up-sell and cross-sell.
• It can be used to optimize prices and promotions.
• It can be used to compare performance at different locations.

Industry Benchmarks

The average ticket size varies between different industries. Generally, a higher ATS indicates higher customer spending, while a lower ATS indicates lower customer spending. According to the National Restaurant Association, the average ticket size for quick-service restaurants (QSR) is .90, while the average ticket size for full-service restaurants is .60.

How to calculate

The average ticket size is calculated by dividing the total sales by the number of transactions. The formula is:

Calculation example

For example, if a Bojangles franchise generated total sales of ,000 from 500 transactions, the average ticket size would be (,000 / 500 = ).

Tips and tricks

• Track ATS over time to identify customer spending trends and patterns.
• Compare ATS to different locations to identify areas of opportunity.
• Use ATS to optimize prices and promotions.
• Set realistic ATS goals to ensure profitability.

Loyalty of the clientele

Definition

Customer retention, also known as customer loyalty, is the ability of a business to keep customers coming back. It is usually measured by the number of customers who have visited the business multiple times over a certain period of time. This metric is an important indicator of customer satisfaction and loyalty.

Benefits of Tracking

• It helps to identify customer behavior and preferences.
• It can provide insight into customer loyalty, which can help a business identify and target potential customers.
• It can help a business understand which strategies are working and which are not.

Industry Benchmarks

The industry benchmark for customer retention is usually between 70-80%. This indicates that a business successfully retains the majority of its customers.

How to calculate

The customer retention rate can be calculated by dividing the number of customers who visited the business multiple times over a certain period by the total number of customers in that period.

Calculation example

For example, if a business had a total of 1000 customers over a three month period and 250 of those customers visited the business more than once, the customer retention rate would be 25%.

Tips and tricks

• Be sure to track customer retention over time so you can identify changes or trends in customer behavior.
• Keep track of what strategies are working and which aren’t so you can make adjustments as needed.
• Be sure to reward customer loyalty with discounts or other incentives to encourage customers to continue visiting your business.

Cost of Goods Sold

Definition

Cost of Goods Sold (COGS) is a metric used to measure the cost of goods that have been sold during a specific period of time. This metric is used to calculate a company’s gross profit and is usually expressed as a percentage of total sales. This is an important metric for Bojangles franchise owners as it helps them track their expenses and determine the profitability of their business.

Benefits of Tracking

COGS tracking provides Bojangles franchise owners with invaluable insight into their business operations. It helps them identify areas for improvement and opportunities for savings. It also helps them set realistic goals and measure their performance against industry benchmarks. Additionally, COG tracking provides franchise owners with a better understanding of their pricing strategies and helps them make informed pricing decisions.

Industry Benchmarks

Industry benchmarks for COGs vary depending on the type of business, but generally it should be between 30-40% of total sales. Knowing the industry benchmarks for your business can help Bojangles franchise owners set realistic goals and measure their performance against their peers.

How to calculate

The formula for calculating COGs is as follows:

Calculation example

Let’s say a Bojangles franchise has a beginning inventory of ,000, purchases of ,000, and an ending inventory of ,000. The cogs of this franchise would be:

Tips and tricks

• Accurately tracking inventory is crucial to accurately calculating COGs.
• Track your COGs on a monthly basis to identify trends and make adjustments as needed.
• Compare your cogs to industry benchmarks to make sure you’re on the right track.

Marketing ROI

Definition

Marketing return on investment (ROI) is a performance metric used to measure the effectiveness of a company’s marketing initiatives. It is calculated by dividing the total revenue generated by a marketing activity by the total cost of this activity.

Benefits of Tracking

Tracking marketing ROI helps businesses understand which marketing campaigns are actually generating revenue and which are not. By getting a clear picture of which activities are yielding the most returns, companies can allocate resources to the most successful campaigns and adjust or eliminate those that aren’t performing well.

Industry Benchmarks

The average marketing ROI across industries typically ranges between 2:1 and 5:1. However, depending on the industry, the average ROI can be much higher or lower. For example, in the retail industry, the average return on investment can be as high as 10:1, while in the healthcare industry, the average return on investment can be as high as 1.5:1.

How to calculate

Marketing ROI can be calculated using the following formula:

Calculation example

For example, if a business spends ,000 on a marketing campaign and generates ,000 in revenue, the marketing ROI would be:

KPI Tips and Tricks

• Make sure you’re tracking the right metrics for each marketing campaign.
• Analyze data to identify trends and determine which campaigns are the most successful.
• Be sure to consider the cost of customer acquisition when calculating ROI.
• Be sure to consider the long-term effects of a marketing campaign when determining ROI.

Conclusion

As a Bojangles franchisee, using Key Performance Indicators (KPIs) is an important part of maximizing profitability and evaluating performance. Tracking and measuring the following seven key performance indicators will allow business owners to develop a better understanding of where their strengths and weaknesses lie:

• Franchise revenue
• Franchisee satisfaction
• Sales by store
• Average ticket size
• Loyalty of the clientele
• Cost of Goods Sold
• Marketing ROI

By taking the time to calculate and track these KPIs, Bojangles franchisees will have the information they need to effectively manage their business, maximize profitability, and set themselves up for success.