Kracking the 7 Key KPIs for N Out Burger Franchises

Introduction

Running a Burger in N Out franchise means keeping track of many metrics to generate a successful business. In this blog post, we will discuss the seven most important sales and business metrics that every franchise should measure and track. These performance indicators give you insight into customer satisfaction, efficiency of operations, and any areas that need improvement.

The seven important KPI metrics for Burger franchises in N Out are:

• Average waiting time
• Unit sales
• Customer Satisfaction Scores
• Food cost percentage
• Store visits
• Customer retention rate
• Employee satisfaction

We’ll take a closer look at each of these metrics and discuss how to track and calculate each.

Average waiting time

Definition

Average Wait Time (AWT) is a KPI used to measure the average time it takes for customers to receive their orders from the point of order to the In N Out Burger franchise. This is an important metric for evaluating the efficiency and effectiveness of restaurant operations.

Benefits of Tracking

• Enables franchise owners to make informed decisions on staffing levels and other operational changes.
• Helps identify areas for improvement and opportunities to reduce wait times.
• Provides valuable feedback to customers on their wait time experience.

Industry Benchmarks

The average wait time for a Burger in N Out franchise is usually 2-3 minutes. This time may vary depending on order size and other factors. Customers generally expect their orders to be ready within 5 minutes of ordering.

How to calculate

The formula to calculate the average wait time is:

Total wait time is the total time customers waited for their orders. The number of orders is the total number of orders received by the restaurant during a given period.

Calculation example

For example, if the In N Out Burger franchise received 50 orders in one day and the total wait time was 100 minutes, the average wait time would be calculated as follows:

Tips and tricks

• It is important to track the average wait time regularly to identify areas for improvement and opportunities to reduce wait times.
• Using technology such as customer feedback tools and order tracking systems can help accurately measure and monitor average wait time.
• Analyzing customer feedback can help identify ways to improve customer experience and reduce wait times.

Unit sales

Definition

Unit sales is a metric that measures the total number of products sold over a period of time. This metric is important for the Burger N Out franchise, as it is an indication of the level of customer demand and the success of their product offerings.

Benefits of Tracking

Tracking unit sales can help better understand the Burger franchise, as well as the overall demand for their product offerings. This can help them make informed decisions about product development and marketing strategies. Additionally, tracking unit sales can provide insight into how the franchise is performing against its competitors.

Industry Benchmarks

Average unit sales for the Burger N Out franchise are typically between 4 and 8 units per day. However, this may vary depending on product type, location and other factors. Franchises should strive for higher than average unit sales to maximize profits.

How to calculate

Unit sales can be calculated by taking the total number of products sold in a given period and dividing it by the number of days in that period. The formula for this calculation is as follows:

Calculation example

For example, if in N Out Burger Franchise sold 200 products over a 10-day period, unit sales would be calculated as follows:

This means that at N Out Burger, the franchise sold an average of 20 units per day over the 10 day period.

Tips and tricks

• In N Out Burger, the franchise should track unit sales regularly to identify trends and optimize their business operations.
• It is important to compare unit sales with industry benchmarks to gauge performance.
• Unit sales should be tracked over a longer period to better understand customer demand.
• It can be beneficial to track unit sales by region to better understand geographic differences in customer demand.

Customer Satisfaction Scores

Definition

Customer Satisfaction Scores (CSAT) measure how satisfied customers are with the products or services they receive from a company. It’s a way to gauge customer loyalty, as customers who are satisfied with their experience are more likely to return. The CSAT score is an important metric for businesses because it can help them identify areas that need improvement and give them an idea of how their services stack up against their competitors.

Benefits of Tracking

• Keep an overview of customer satisfaction and loyalty.
• Identify areas for improvement.
• Compare performance to industry benchmarks.
• Encourage customer feedback.

Industry Benchmarks

The average CSAT score in the restaurant industry is 83.5%. In N Out, Burger has a higher average CSAT score than its competitors, with a score of 89%. It’s important to note that different industries have different benchmarks, so it’s important to compare your company’s CSAT score to those of competitors in the same industry.

How to calculate

The CSAT score is calculated by dividing the number of satisfied customers by the total number of customers. The formula is:

Calculation example

For example, if in N Out Burger had 1,000 customers and 900 of them were satisfied, the CSAT score would be calculated as follows:

Tips and tricks

• Keep surveys short and simple to increase response rates.
• Ask for feedback at every customer touchpoint.
• Take steps to respond quickly to customer feedback.
• Provide incentives to encourage customers to leave reviews.

Food cost percentage

Definition

The Food Cost Percentage (FCP) is a metric used to measure the amount of money spent on food compared to total sales. It is expressed as a percentage and is used to monitor and evaluate the profitability of a n-out burger franchise.

Benefits of Tracking

Tracking food cost percentage is important for a burger franchise in N Out because it helps identify areas where costs can be reduced. It also allows for better budget planning and forecasting for future food purchases. Plus, it can help determine whether the restaurant is overspending on food or not.

Industry Benchmarks

Food cost percentages vary depending on the type of restaurant. Because in N Out Burger Restaurants, the industry index is usually between 18% and 28%.

How to calculate

The food cost percentage can be calculated by dividing the total food cost by the total sales. The formula is:

Calculation example

For example, if the In N Out Burger franchise has total food costs of ,000 and total sales of 0,000, the food cost percentage would be 25%:

Tips and Tricks for KPIs

• Regularly monitor the food cost percentage.
• Analyze the data to identify areas where costs can be reduced.
• Compare the food cost percentage to industry benchmarks to ensure the restaurant remains competitive.
• Use data to make informed decisions about future food purchases.

Store visits

Definition

Store Visits is a Key Performance Indicator (KPI) that measures the number of visitors to a Burger In-N-Out franchise. This metric helps franchise owners understand the popularity of their location, as well as overall customer satisfaction.

Benefits of Tracking

Follow-up store visits can provide valuable information to franchise owners. By monitoring the number of visits, franchise owners can identify audience trends over time. This can help them make more informed decisions about their marketing and promotional strategies, as well as the overall customer experience. Additionally, store visits can be used to compare the performance of different locations, helping franchise owners identify top performers.

Industry Benchmarks

Average store visits by franchise location are often used as an industry benchmark. This figure can be compared to the performance of other In-N-Out burger locations, as well as franchises in other industries. This can provide valuable insight into a franchise’s overall performance, as well as the competitive landscape.

How to calculate

Store visits can be calculated by dividing the total number of visitors to a franchise location by the total number of days the store has been open. This can be done by taking the total number of visitors during a given period and dividing it by the total number of days in that period.

Calculation example

For example, if a Burger In-N-Out franchise had 10,000 visitors in a month and the store was open for 20 days during that time, the store visit KPI would be calculated as follows:

Tips and Tricks for KPIs

• It’s important to track store visits over time to identify trends and make more informed decisions.
• Store visits can be compared to industry benchmarks to gauge a franchise’s performance.
• Storage visits should be calculated consistently to ensure accuracy.

Customer retention rate

Definition

In N Out Burger Franchise KPI Metrics, customer retention rate is the ratio of customers returning to the store for another purchase. This metric provides an indication of the success of the franchise in retaining customers and ensuring their loyalty.

Benefits of Tracking

Tracking customer retention rate is beneficial for the In N Out Burger franchise as it helps to identify their loyal customers and provide them with additional rewards and discounts. Additionally, tracking the customer retention rate allows the franchise to identify areas for improvement and make necessary changes to ensure customer satisfaction.

Industry Benchmarks

Industry benchmarks for customer retention rate vary depending on the type of business. However, for an In N Out Burger franchise, a customer retention rate of 70-80% is considered a good benchmark. This rate is higher than the national average of 50 to 60%.

How to calculate

Customer retention rate is calculated using the following formula:

Calculation example

For example, if a Burger in N Out franchise has 500 customers in a month and 400 of them return to the store in the same month, the customer retention rate will be calculated as follows:

Tips and tricks

• To improve customer retention rate, it is important to provide good customer service and ensure customer satisfaction.
• Providing rewards and discounts to loyal customers is a great way to improve customer retention rate.
• Regularly monitoring the customer retention rate helps identify areas for improvement and make necessary changes.

Employee satisfaction

Definition

Employee satisfaction is a measure of how content and satisfied employees are in their work environment. This is a key performance indicator (KPI) that can help employers understand how engaged and motivated their workforce is.

Benefits of Tracking

Tracking employee satisfaction can have many benefits in Burger N Out franchises. It can provide insight into employee morale, the effectiveness of the company culture, and the overall job satisfaction of staff. Regularly measuring employee satisfaction can help identify areas for improvement and help employers develop strategies to improve the workplace and increase employee satisfaction.

Industry Benchmarks

The industry benchmark for employee satisfaction can vary by industry and company size. However, some general benchmarks for employee satisfaction are:

• 90% of employees are satisfied with their work
• 80% of employees feel they have a good work-life balance
• 75% of employees are proud to work for the company
• 70% of employees believe they are paid fairly
• 70% of employees believe their work is meaningful

How to calculate

Employee satisfaction is usually calculated by surveying employees and asking them to rate their satisfaction on a scale of 1 to 10. These ratings are then averaged to give an employee satisfaction score percentage.

Calculation example

For example, if the average employee rating is 8.5, the employee satisfaction percentage would be:

KPI Tips and Tricks

• Conduct regular satisfaction surveys to track employee satisfaction over time
• Develop strategies to improve employee satisfaction scores if necessary
• Make sure the survey is anonymous to get honest responses from employees
• Encourage employee feedback to better understand their specific needs and concerns
• Provide incentives for employees to participate in the survey

Conclusion

In N Out, Burger franchises must measure and track various performance indicators to maximize efficiency and customer satisfaction. Understanding customer retention, store visits, dwell time, and unit sales are all part of building a successful business. It’s also important to measure food cost percentage, customer satisfaction scores, and employee satisfaction to ensure customer service is top-notch.

By tracking and calculating the seven metrics we’ve discussed in this blog post, you’ll be well on your way to creating a successful Burger franchise.