Setting the table for success: Key performance indicators for restaurants
10/05/2023
To elevate your restaurant, you need to know how it is performing.
To ensure that your restaurants consistently meet the high standards of your customers, it’s crucial to track and analyse key performance indicators (KPIs).
The KPIs that you track will depend on your goals, but some indicators to consider include:
Revenue per Available Seat Hour (RevPASH)
RevPASH is a crucial metric that assesses how efficiently your restaurant generates revenue.
By dividing the total revenue by the available seat hours, you can identify areas for improvement, such as increasing table turnover, adjusting opening hours, or optimising pricing strategies.
Food and beverage cost percentage
Maintaining a keen eye on food and beverage costs is essential for maintaining profitability in the fine dining sector.
This KPI is calculated by dividing the total cost of food and beverages by the revenue generated from their sales.
Monitoring this metric can help you identify inefficiencies in purchasing, portion control, or menu pricing.
Labour cost percentage
Your employees are essential to keep your restaurant running.
But you need to maintain an overview of your labour costs, as this is likely to account for a significant portion of your overall expenses.
This KPI is determined by dividing total labour costs by total revenue. Keeping labour costs in check ensures that the restaurant remains profitable while maintaining the highest levels of service and culinary expertise.
Online reputation score
In today’s digital age, online reviews can significantly impact a restaurant’s success.
By monitoring their online reputation score, you can gauge guest satisfaction which can identify areas for improvement.
This can then shape your strategies to address issues and improve your guests’ experience.
Employee retention rate
The ability to retain skilled and dedicated staff members is crucial for maintaining high standards of service.
A high employee retention rate indicates a positive work environment and effective staff development, both of which contribute to the overall success of the restaurant.
By tracking and analysing these key performance indicators, you can continually refine your operations, ensuring that you deliver an exceptional service.
With a data-driven approach, you can set the table for success, creating a solid foundation for a thriving and profitable business.
For advice on monitoring KPIs and your business’s strategies, get in touch with our hospitality experts today.