Emily Clarke

5 Most Important Metrics to Keep an Eye on for Your Restaurant

Running a successful restaurant requires more than just a killer menu and awesome staff. The restaurant business is complex, and maximizing revenue requires you to keep track of several key metrics. Here are some of the most important you should monitor with a restaurant analytics dashboard.

Order Volume

Understanding order volume matters. In addition to shedding light on potential revenue, it can help you optimize staffing to ensure your restaurant can serve people efficiently during your busiest hours.

There are many ways to monitor order volume, and what figures you pay attention to will depend on how your restaurant operates. However, general metrics should include how many orders you receive for dine-in, takeout and online. It also pays to monitor average covers for more insight into the average number of customers you serve per day or service period.

Average Check Size

The more food diners order, the better! Knowing the average check size at different points throughout the day can help you understand revenue potential. Furthermore, it can dictate how your servers approach upselling. In addition to monitoring check sizes, you can also look at revenue per available seat hour.

Cost of Goods Sold

In this industry, you must spend money to make money. The cost of goods sold (COGS) reflects the direct costs of producing the meals you sell. This figure is important because it will help you manage inventory and adjust your menu prices for maximum profit.

Cash Flow

Cash flow is an important metric for any business. However, it's crucial for restaurants. Many restaurants operate with razor-thin margins. Knowing your cash flow will help you understand how much money flows in and out of your business. It's an important metric for maximizing revenue, understanding liquidity and assessing your restaurant's financial health.

Reviews

Finally, don't forget to keep an eye on your reviews. Customer reviews reflect what diners think of your business. Seeing your average review score on a restaurant analytics dashboard allows you to take action and improve your reputation.

Author Resource:-

Emily Clarke writes about business softwares and SaaS solutions. You can find her thoughts at virtual restaurant blog.