As restaurant owner or manager, you will undoubtedly be tracking sales figures and profits using your POS system. However, with increased competition your business needs more in-depth on data to operate more efficiently. The most successfully businesses focus on several key performance indicators (KPI’s) to help really gain a proper view on their businesses.
KPIs cover all areas of your business from sales, and HR to marketing. With a proper restaurant POS platform like PointOS your business can capture real-time data into all aspects of your business. This allows you to make reactive and proactive decisions about everything which ultimately will increase your bottom line.
However today we will discuss the 5 key elements in which you need to track from a sales perspective.
1.Sales per labor hour (SPLH)
SPLH assesses the earnings generated by your business each hour. An efficient labor hour is achieved when the resources available generate the most revenue.
This KPI has two factors which come into play, your labor hours and sales revenue. Labor hours won’t change significantly because you are open when you are open. However your sales will change based on weather, holidays, weekends and peak meal times.
Ultimately your SPLH will help to predict when you have the customers coming into to dine which will then help you to staff accordingly.
2.Food and drink sales per guest
Sales per head will give you a full picture of what appeals most to guests and whether time of day impacts total spending. It also reveals underperforming dishes that have a negative impact on the BOH’s productivity while doing little to boost profits. Alternatively, it shows which popular or hot-selling items to increase prices and improve margins on. What’s more, this KPI will tell you the best time (slow periods) to run a promotion or happy hour to increase sales.
3.Table turnover rate
Whether your restaurant is fast-casual dining or white-tablecloth service, tracking the table turnover rate is essential for any sit-down restaurant.
Once you know the average time it takes for a table to sit, eat, pay, and leave at your establishment, you can take deliberate steps to improve the rate. Often, the biggest problem lies in service; the FOH is too slow or a slow legacy system is used to process payments.
Making sure your staff are well trained will help improve your turn over rate.
Looking past how many waitstaff you have on the floor, you also want to know how hard they are working for your business to sell. Taking orders is one thing, but if your staff are up-selling or making pairing suggestions they are helping your business’s bottom line. You can analyze how much each staff member is selling, and cross reference with your actual sales and see what percentage each employee is giving your business.
These are just a few of the KPIs your business should be tracking. Your POS can offer many more insights, and even customized based on what you actually need for your business. No matter the size of your business, more is more, and remember to do it often for measurable results. The more you know the more you can improve your business.
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See you next week!
Your devoted hostess,
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