Maximize Your Schlotzsky Franchise Profits with Key Performance Indicators

Introduction

Franchise performance measurement is essential for Schlotzsky business owners to maximize profits. To track and calculate the performance and success of Schlotzsky’s franchise operations, Key Performance Indicators (KPIs) are commonly used to analyze, compare and share performance results. This blog post serves as an introduction to the seven key KPIs franchisees should track and calculate to ensure their business operations are optimized and their profit margins are maximized. The seven KPIs are:

• Sales growth
• Income
• Profit margin
• Average check
• Client satisfaction
• Operating Expenses
• Average kitchen wait time

Sales growth

Definition

Sales growth is the measure of how quickly a Schlotzsky franchise earns revenue over a period of time. It is a key performance indicator (KPI) used to measure the success of the business and track its financial performance.

Benefits of Tracking

Sales growth tracking is an important tool for Schlotzsky franchisees because it helps them identify market trends, measure the success of their marketing and promotional campaigns, and monitor their business performance. By tracking sales growth, franchisees can make informed decisions about where to invest their resources to maximize profits.

Industry Benchmarks

The industry benchmark for sales growth for Schlotzsky franchises is a year-over-year increase in revenue of at least 10%. This means that, over the course of a year, the franchise should have increased its revenue by 10% or more.

How to calculate

Sales growth can be calculated by taking the difference between the current period’s sales and the previous period’s sales, then dividing that amount by the previous period’s sales. The formula is:

Calculation example

For example, if a Schlotzsky franchise had sales of 0,000 in the prior period and 0,000 in the current period, sales growth would be calculated as:

Tips and Tricks for Tracking KPIs

• Track sales growth regularly to identify trends and measure the success of your marketing campaigns.
• Compare your sales growth to industry benchmarks to ensure your business is operating at an acceptable level.
• Analyze your data to identify areas for improvement and make informed decisions about where to invest resources.

Income

Definition

Revenue is the total amount of money Schlotzsky franchisees receive from the sale of all goods and services. It is one of the most important KPI metrics for any business because it indicates business success and can be used to measure growth over time.

Benefits of Tracking

By tracking your Schlotzsky’s franchisee earnings, you can better understand the success of the business and whether it is meeting its financial goals. Tracking revenue also allows you to identify any areas of weakness or areas for improvement, as well as identify any potential opportunities for growth.

Industry Benchmarks

The industry benchmark for Schlotzsky franchisees is typically around million in annual sales. However, this may vary depending on the location and size of the franchise. It is important to keep in mind that these benchmarks may change over time.

How to calculate

The formula for calculating Schlotzsky’s franchisee income is:

Calculation example

For example, if a Schlotzsky franchisee had total sales of 0,000 and a cost of goods sold of 0,000, the franchisee’s revenue would be calculated as follows:

Tips and tricks

• It is important to track revenue regularly to monitor the success of the franchise.
• It’s also important to compare revenue to industry benchmarks to measure franchise performance.
• Tracking revenue can also help identify potential opportunities for growth and areas for improvement.

Profit margin

Definition

Profit margin is a financial ratio used to measure the profitability of a business. It is calculated by dividing net income by total income.

Benefits of Tracking

Tracking profit margin is important for Schlotzsky franchise owners because it can give them a better understanding of the overall profitability of their business. Knowing a company’s profitability helps franchise owners plan future operations and gauge performance against industry benchmarks.

Industry Benchmarks

Profit margin benchmarks for Schlotzsky franchise owners vary by industry. Generally, the average profit margin of quick service restaurants is between 1 and 3%.

How to calculate

Profit margin is calculated by dividing net profit by total revenue. The margin-to-profit formula is as follows:

Calculation example

For example, if a Schlotzsky franchise has net income of ,000 and total sales of 0,000, its profit margin would be 10%.

Tips and Tricks for Tracking KPIs

• Track profit margin on a quarterly or annual basis to get an accurate picture of overall company profitability.
• Compare current profit margin to industry average to gauge performance.
• Analyze profit margin trends over time to see if there is an improvement or a decline.

Average check

Definition

Average check, also known as average ticket size, is a metric that measures the average amount a customer spends each time they visit a restaurant. This metric is important because it allows restaurant owners to understand customer spending behavior and tailor their menu and promotions accordingly.

Benefits of Tracking

Tracking the average check is important for Schlotzsky franchise owners to better understand how their customers are spending their money. With this information, restaurant owners can determine which menu items are most popular and adjust their price accordingly. Additionally, tracking this metric can help Schlotzsky franchise owners identify which promotions are more successful and which need improvement.

Industry Benchmarks

The average check size for Schlotzsky’s restaurants varies by location, but is generally around – per person. This is in line with industry benchmarks for quick service restaurants.

How to calculate

The average check size can be calculated by dividing the total sales for a given period by the total number of customers during the same period. The formula to calculate the size of the average check is:

Calculation example

For example, if a Schlotzsky franchise had total sales of ,000 and served 200 customers during the same period, the average check size would be (,000/200).

Tips and tricks

• Regularly check the size of the average check to ensure that it is in line with industry benchmarks.
• Adjust prices and promotions accordingly to increase the average control size.
• Monitor customer reviews to ensure menu items are rated appropriately.

Client satisfaction

Definition

Customer satisfaction is a business metric used to measure the level of customer happiness with a product, service, or experience. It is usually measured using surveys, interviews and other feedback tools.

Benefits of Tracking

Tracking customer satisfaction is important for businesses of all sizes. It can help businesses identify current customer needs, understand customer preferences, and measure customer loyalty. By understanding customer satisfaction, businesses can also improve their products and services and increase customer loyalty.

Industry Benchmarks

The industry benchmark for customer satisfaction is usually determined by the Net Promoter Score (NPS). NPS is a customer loyalty metric that measures the likelihood that a customer will recommend a product or service to friends or family. The industry benchmark for NPs is usually between 50 and 70.

How to calculate

Customer satisfaction can be calculated by measuring customer response to a survey or feedback tool. The most common approach is to measure overall customer satisfaction with a product or service on a scale of 0 to 10.

Calculation example

For example, if a company has 100 customers and 80 of them are satisfied with the product or service, the customer satisfaction rate would be 80%.

Tips and tricks

• Systematically monitor customer feedback to identify areas for improvement
• Actively respond to customer feedback to ensure customer satisfaction
• Regularly review customer satisfaction metrics and benchmark against industry benchmarks

Operating Expenses

Definition

Operating expenses refer to the costs incurred to run a business. This includes direct costs such as salaries, utilities and raw materials, as well as indirect costs such as advertising, research and development and administrative costs.

Benefits of Tracking

Operating expense tracking is beneficial to Schlotzsky franchise owners because it provides an accurate measure of the costs associated with running the business. By tracking these expenses, owners can identify potential savings areas, as well as areas that require greater investment. This information can then be used to make informed decisions to improve profitability.

Industry Benchmarks

The average operating expense ratio for a Schlotzsky franchise is around 15-20% of total revenue. This ratio is used to measure the company’s efficiency in generating profits compared to other franchises.

How to calculate

The operating expense ratio can be calculated by dividing the total operating expenses by the total franchise revenue. The formula for this calculation is as follows:

Calculation example

If total operating expenses for a Schlotzsky franchise were 0,000 and total revenues for the year were ,000,000, the operating expense ratio would be calculated as follows:

Tips and tricks

• Track and compare operating expenses over time to identify trends and potential savings areas.
• Monitor the operating expense ratio against industry benchmarks to measure business efficiency.
• Analyze operating expenses by category to identify areas for potential improvement.

Average kitchen wait time

Definition

The average kitchen wait time is a key performance indicator (KPI) that measures the average time it takes for an order to be filled. This metric includes the time the customer waits for their order to be prepared, as well as the time the order spends being prepared in the kitchen. This is an important metric for any restaurant, as it allows businesses to track their efficiency and optimize their processes.

Benefits of Tracking

Tracking the average kitchen wait time has many benefits for Schlotzsky franchise owners. It can be used to measure the efficiency of kitchen staff and identify areas for improvement. Additionally, it can be used to monitor customer satisfaction, as customers are more likely to be happy with their experience if their orders are fulfilled quickly and accurately. Finally, tracking the average kitchen wait time can help owners better manage their inventory, as they can adjust their order patterns based on the time it takes to prepare each item.

Industry Benchmarks

The industry benchmark for average kitchen wait time varies by restaurant type. For Schlotzsky, the benchmark is usually between 10 and 15 minutes. This includes the time the customer waits for their order to be prepared, as well as the time the order spends being prepared in the kitchen.

How to calculate

To calculate the average kitchen wait time, first add up the total time each order spends waiting. Then divide that total time by the total number of orders. The resulting number is the average kitchen wait time.

Calculation example

For example, if Schlotzsky has ten orders that take a total of 100 minutes to fill, the average kitchen wait time would be 10 minutes. This would be calculated by dividing the total time (100 minutes) by the total number of orders (10 orders).

Tips and Tricks for KPIs

• Track average kitchen wait time daily to identify trends and peak times.
• Invest in kitchen staff training and technology to reduce kitchen wait times.
• Monitor customer feedback to identify any areas of improvement.
• Adjust the order templates to ensure the kitchen is stocked with needed items.

Conclusion

Tracking the top seven KPIs for Schlotzsky’s franchise operations is paramount to ensuring the success and profitability of their business. By understanding how each KPI impacts the business, owners can make calculated decisions to maximize their profits. Using a comprehensive KPI tracking and analysis system, franchise owners can uncover trends and patterns, identify specific areas for improvement, and take awareness actions to ensure continued success and profit growth. Ultimately, this will help franchise owners reduce operating costs and improve their bottom line.