A successful and responsible restaurant manager uses Key Performance Indicators (KPIs) to find out if effort, time and money are being devoted correctly towards the restaurant’s goals.

With KPIs, you can quickly identify any problems in the way you’re running your restaurant and act accordingly, or spend time on nurturing the areas in which you’re doing well. The list of KPIs is long and not all of them will be relevant to you.

Focusing on finding the important and relevant KPIs will ensure that you keep leading your restaurant towards success, and to help you get started, we have listed a few that are always relevant to a restaurant manager. There is especially one KPI that many tend to overlook but can easily save you money if taken into consideration.

In general, all restaurant KPIs fall under the following categories and objectives:

Social Media and Marketing

In an age where review site ratings and social media can make or break a business, it’s crucial to monitor them effectively and to have a strategy that brings all of your marketing together. For example, if your website is not well optimized and customers have a hard time finding what they’re looking for, such as opening times, address or the menu, it won’t take much for them to leave the site and look for other options.

KPIs in this area include:

  • Social media goals such as number of engagements with a post
  • Website KPIs such as bounce rate, page dwell time or organic SEO ranking
  • Average review scores on sites such as Tripadvisor, Zomato and Yelp

People and Profitability

Any restaurant is only as good as it’s people, including both the management and staff. Since labour costs tend to be among the highest costs in any establishment, it’s important to have an idea about how productive your staff are and how much sales they bring in. Similarly, it’s very important to ensure that employees are engaged and happy at work, as high employee turnover impacts productivity and the bottom line. Check out how our reporting feature can help you get a better overview of labour costs vs. revenues.

The most important KPIs in this area include:

  • Labour Cost Percentage shows how much is spent on labour as a percentage of revenue
  • Sales Per Employee Per Hour looks at how much revenue each employee generates
  • Employee Turnover goes into how often staff leave within a set period of time

Kitchen and Management

The key to good kitchen management is finding a balance between providing great value to the customers, while keeping the cost down. This includes reducing waste, optimising the menu and reducing waste to keep down food costs.

Here are some of the KPIs to keep an eye on:

  • Gross profit margin is a key profitability metric to know whether you’re staying profitable
  • Menu item profitability helps with setting a strong pricing strategy
  • Waste can be a high deterrent for growth as it can quickly add up

 

Customer Service

Customer satisfaction should be at the top of any restaurant manager’s list, whether they run a Michelin star eatery or a small restaurant. Customers vote with their wallet, and to keep them coming back, smiling and efficient staff is essential to encourage return visits.

Key metrics to consider are:

  • Average table occupancy tells you how many customers on average have visited your restaurant during a particular period of time
  • Spend per head highlights the average spend per customer
  • Customer loyalty reaps rewards in the long term

 

Does your restaurant pass the test?

Want to find out how well your restaurant is doing? Take our Restaurant KPI Health Check test!

Created in collaboration with UK’s Institute of Hospitality, the checklist covers all of the essential KPI areas and helps you understand your strengths and areas for improvement.

Download the Restaurant Health Check below!

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If you want to deep dive even further and understand how each metric is calculated, we’ve got you covered with The Ultimate Guide To Restaurant KPIs eBook! The eBook will get sent to your email directly after you download the checklist for your easy reference.

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