Key Performance Indicators for Restaurant Businesses
Being in the restaurant industry is highly rewarding but it's also extremely challenging! It's a saturated market which means competition and customer expectation is high. Not to mention labor shortages, regulatory compliance, supply chain issues, and rapidly shifting trends. It's a lot to track and monitor, but it can be done!
Key Performance Indicators (KPIs) are quantifiable metrics that you can use to gauge the overall health and success of your restaurant business. They are key to identifying issues, uncovering behaviors, highlighting areas of consistency and growth, and when used regularly, can be a driving force in the success of your business. When deciding which KPIs would be beneficial to begin tracking, consider the following options:
Average Check Size
Customer Satisfaction Score
Employee Turnover Rate
Food Waste Percentage
Online and Delivery Sales Growth
Operating Cash Flow
Revenue Growth
Identifying the KPIs that are most relevant to your business, and then monitoring and measuring them can be crucial to uncovering issues, adapting to current trends, making informative and essential financial decisions, and driving the overall health and sustainability of your business. Once you've established these metrics, stay consistent in your tracking so that you can benchmark your business against your business and others in the industry, from year to year.