When it comes to the overall health of your restaurant, knowing where you stand is essential. Using key performance indicators (KPIs) allows you to clearly see how you’re doing overall, taking the guesswork out of managing your restaurant. Through working with thousands of restaurants across many concepts and locations, Avero restaurant software has identified the most important restaurant performance metrics you should be measuring on a daily basis.
Labor: Your single biggest cost. Running a restaurant is expensive, especially when it comes to labor. Maintain a happy and well-compensated staff while managing their labor with:
- Total labor costs as a percentage of your gross sales.
- Cover per labor hour to indicate how to manage your labor based on volume.
- Total weekly overtime hours to take control of your overtime.
Promotions: Don’t let them eat away your profit. “Promotions” indicate items that receive some type of discount. Over-promoting might result in your business losing money, so take control of your promotions and generate more revenue for your business by:
- Trending total promotion amount to see how it’s changed over a specific period of time.
- Trending promotions as % of gross sales to see if it’s increased/decreased over time.
- Sorting the $ column in a promos report to see which one is costing you the most money.
Service: Capitalize on your human assets. Knowing how each member of your service team is performing and where they have opportunity for growth allows you to target and train for increased revenue. Enhance your service team with:
- Gross average check per cover, the most important metric for a cover-counting server.
- Item per cover percentage to keep track of how well they sell certain items and categories.
- Tip percentage to make sure it’s in proportion to that of other members of your team.
Get more information on identifying and measuring key performance metrics for restaurants!
