Methods of measuring performance in restaurants


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    Measuring the success of restaurant management using KPIs

    Managing successful restaurants is a very complex process between trying to maintain high profit rates and reduce employee turnover, and between a highly competitive market, and changing customer trends. It is always difficult to assess the performance of restaurant management and the level of quality that exists without the availability of key performance indicators that are monitored and measured, and due to the complexity of departments The main operational indicators of any restaurant, the performance indicators are difficult to be the same for all these sections, and therefore it is necessary to identify the most important KPIs for each of them separately so that we can evaluate the performance and reach the weaknesses and work to solve them, and enhance your success more than the past.

    Key performance indicators in restaurant management

    KPIs are one of the best ways that restaurant management can use to track the level of quality in their restaurants by keeping track of some of the key factors that show the financial condition of the restaurant and whether it is stable or not, the actual performance, quality and turnover of employees, customer experiences and their level of satisfaction with The service provided to them, as the main performance indicators help to follow up and effectively evaluate the general performance of the administration to improve the situation in general. The most important indicators that can be monitored are the following:  

    Restaurant Operational KPIs

    They are the indicators responsible for following up on the overall efficiency of the restaurant by following up on profit and sales rates, employee productivity, and the way the restaurant works in general, and they can be summarized in some basic concepts such as:

     
    • Cost of goods soldIts goal is to know the cost of each menu item separately, and thus reach the best pricing for these items and determine the profit margin that can be achieved for each dish on the menu, and thus helps you know the best-selling and most profitable menu items, and thus you can make pricing and promotion decisions Best.
    • net profit margin: It is the profit achieved after deducting all costs from rent, electricity, salaries, and others, knowing that the vast majority of restaurants take a few years to start achieving actual profit margins, so there is no need to worry.
    • نcat tieIt is the point that helps determine the volume of sales required until we reach a break-even point, and accordingly determine the period of time it takes to recover the invested capital.
    • متوسط ​​occupancy : It means the number of actual restaurant customers during a specified period of time, and helps in identifying peak times and slack times, thus determining the appropriate times for promotions to attract more customers.
    • scheduling turnover: It means the rate of table occupancy during a specified period of time, thus increasing sales by reducing service times, increasing turnover and increasing the number of leads.
    • Sales per customer : Which means the amount of money the customer spends on average while he is in the restaurant, and therefore you will be able to determine the most profitable times and items, whether it is food or drinks, and therefore you can predict the volume of sales.
    • Staff turnover: It is the average length of time a worker stays at a restaurant, thereby addressing employee problems, and saving unnecessary recruitment and training costs to replace unsuitable employees.

    Kitchen KPIs and Inventory KPIs

    The kitchen is the soul of the restaurant and is the number one influencer in profit margins, efficiency, quality, cost reduction and waste, so here are the KPIs for kitchen management:

    • Production time for each dish It is necessary to know the length of time it takes to prepare each of the menu dishes in your restaurant, especially the dishes that are most and least requested, so that you can find ways to reduce these times and make the service provided faster.
    • Food waste (per food purchased): Keep track of the amount of food waste and waste for each menu item and consider improving the ways you buy and store these items to eliminate the financial burden of food waste and increase profit margins.
    • Inventory turnover ratio: The number of times that inventory is sold during a specified period of time, thus better managing inventory and ensuring that there is no shortage or increase in the stock of products and controlling them.

    Customer satisfaction KPIs

    The customer is the king, and everyone works for him. Therefore, maintaining customer satisfaction is the first guarantor for the long-term survival of your restaurant in the market. The most important performance indicators for tracking customer satisfaction are the following:

    • Customer retention rate: It shows how loyal customers are to your restaurant and how often they come back to you, and this can be achieved by implementing loyalty and incentive programs that ensure they keep coming back.

    Online Reviews: Which is what customers say about you on the Internet, so carefully monitor the reviews of your customers online, especially social networking sites, understand their opinions well, and work to continuously improve your level of service and always provide the best



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