The 4 essential restaurant KPIs you need to gorge on regularly
If you want to grow your cash waistline whilst shrinking unsightly costs, these are the four essential restaurant KPIs you need to gorge on regularly. Grab the nearest fork, it’s time to get business fat.
1. Average customer headcount. Unless your restaurant happens to be a front for the New York Mafia, then without sufficient customers it is doomed to fail. Average customer headcount is an engagement metric which measures how many customers are using your restaurant within a set window or period. Coupled with your average revenue per customer, you can use this information to plot out future revenue targets and factor it into your cash flow projections.
2. Average revenue per customer. This KPI measures how much revenue you are generating on average from those that dine at your restaurant. A high figure should be aimed for, particularly if your customer headcount is low or you’re targeting niche clientele. Whilst a lower figure can be acceptable if you’re prioritising volume and have the customer headcount to justify it, this may indicate problems in pricing strategy or with your menu itself, which require further investigation.
3. Dry and wet sales gross profit percentage. Even when your restaurant is fully booked and your customer reviews are glowing, your profits may be being eaten away due to low, inefficient profit margins. By monitoring your dry and wet sales gross profit percentage, you can stay abreast of how much of a return you are actually generating from food and drink relative to your costs. Consider increasing the price you charge per item and whether cost reductions could be made to boost your margins.
4. Wages to sales. Another key variable which can impact your profit margins is the amount you spend on wages. If your balance of wages to sales is disproportionate, then several bad sales months in a row could drain your cash reserves and seriously impact the future security of your business. To mitigate against this, it’s important to both measure and manage salaries relative to the revenue that you’re generating, as well as factor in how future changes may alter this KPI.
To learn more about the KPIs that could impact your business, check out our KPI Library.
Find out how to measure average customer headcount in Futrli.
Find out how to measure average revenue per customer in Futrli.
Find out how to measure dry sales and wet sales gross profit percentage in Futrli.
Find out how to measure wages to sales in Futrli.