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KPI is a performance management tool or data that indicates the success of opportunities to gain success within a business. Data is running business these days, especially if we talk about the restaurant industry. Key Performance Indicators are able to provide real-time data to various business owners to track their company’s performance.

As the owner of the business of a restaurant, it is necessary to monitor activities for daily basis. It defines the efforts made to accelerate success.

KPI is a performance measurement used to evaluate how effectively your company is operating and reaches its key business objectives. KPI should be:

  • Properly defined
  • Communicated clearly
  • Generated and measured with actual data
  • Applicable
  • Monitored regularly

How to design Restaurant Manager KPIs

Below are some points mentioned that every restaurant manager needs to be focused before planning to use KPIs

  1. KPI should be clearly defined and linked with strategy. The point of paying attention to what matters most matters.
  2. Every KPI should be appropriate to provide answers to our most important questions.
  3. KPIs should be primarily designed to empower employees and provide them with the relevant information to learn.

KPIs to track Restaurant activities

Below are the top 5 KPIs, so that you can quickly identify the problem in running your restaurant. With these KPIs you can increase sales and profitability, and you can make measured adjustments to help your business grow.

1. Sales Per Head

restaurant kpis

The restaurant manager is regularly calculating their sales per head at different time intervals of the day. Most of the managers are ready to know the sales of per head during lunch and dinner. It can be on a daily, weekly or monthly basis. This approach helps in obtaining a sales graph and justifying the business in a positive or negative manner.

2. Sales Per Labor Hour

restaurant kpis

It is clear that labor is the most important resource. The productivity of your employees, whether on the restaurant floor or in the kitchen, has a huge impact on the success of the business.

3. Revenue per available seat hour

restaurant kpis

This KPIs helps the manager to operators and understands how efficiently and effectively each seat in a restaurant generates revenue. This KPIs is similarly like Hotel KPIs – revenue per available room.

4. Seating Efficiency

restaurant kpis

Seating Efficiency simply counts the number of seats filled and divide the total number of seats available at a specific time across all the location. While a seating efficiency of 100 percent is most likely not possible, you should aim to create the highest percentage possible without sacrificing the guest experience. Seating efficiency is just like giving right place to the right party.

5. Table Turn Time

restaurant kpis

Table turn time measure from the time they sit to the time they leave. It is very important to track this metrics because the faster the table turn the more money you make.

restaurant kpis

Restaurant Dashboard

1.Executive Dashboard

restaurant kpis

The Restaurant Executive Dashboard provides visual understanding of operating KPI, matrix and data. Its aim is to provide professional display dashboard to the CEO of a restaurant for all the units.

2. Kitchen to Customer in Minutes

restaurant kpis

The Kitchen-to-Customer Dashboard explains how often your guests are being served. It is important to identify potential areas for improvement. Slow service is a huge change for customers and when they are happening once, they may be ready to forgive it, if this is a continuous problem then it will not be understandable.

3. Sales Margin

restaurant kpis

Sales margin dashboard shows profit generated from the sale of a product or service. It is used to analyse profits at the level of an individual sale transaction, rather than for an entire business.

4. Net Sales Customer Count

restaurant kpis

Net sales, customer count gives you the total revenue reported by the company. This dashboard allows you to search by area, name, location, or year. Here you can compare progress between two years, place or area.

Conclusion

We hope this list of metrics is useful for your continued success as a business owner or manager. By monitoring these key performance indicators, you can see where your restaurant stands and where it can use improvements. It is ideal to take a holistic view, whatever steps you take to improve each metric, it is one in the right direction.

Abhishek Sharma

Abhishek Sharma

Software Developer

Abhishek is working as a Web Graphics Designer at EzDataMunch. He is involved in Maintaining and enhancing websites by adding and improving the design and interactive features, optimizing the web architectures for navigability & accessibility and ensuring the website and databases are being backed up. Also involved in marketing activities for brand promotion.

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