3 old metrics that are hurting the restaurant industry, and 3 that operators should use every day instead.

A quick 4 minute read today;

If you have spent any time working in the restaurant industry, you know how rich in tradition it is, you know how tied to it's ways it can be, and you know how it has used some of the same methods and strategy for decades.

But things are changing... Faster than ever.

In fact, it is changing so fast that it is getting harder and harder for operators to stay ahead, and stay on top of things.

The restaurant industry is more of a moving target than it ever has been.

Learn how to stop the target from moving HERE .

At Benchmark Sixty Restaurant Services, we work with hundreds of restaurants every year, helping them to navigate the rapidly changing landscape of the restaurant industry. Every day we speak with operators who are finding it harder and harder to keep up.

That's where we come in, and simplify things.

After years of this work, and too many conversations with operators to count, we have realized that there are 3 metrics that are hurting the industry, and 3 that are often missed.

Here is what we have found:

3 metrics that are hurting the restaurant industry...

1. Labor cost %
2. COGS %
3. Sales contests

And here is why...

-> Labor cost as a percentage is made up of far too many variables for a manager to control, and because they typically can't see what all of the pieces are doing they cut hard to hit targets that may not be achievable, which often damage service and employee experience.

-> COGS are the second metric that the industry needs to be careful with. The old ways of costing a menu don't work as well as they used to, and often we see restaurants miss the "contribution" piece as they are too focused on % of sales. Let's put it this way, I would rather sell a 40% cost item that makes $12, than a 25% item that makes $4. Wouldn't you?

-> Sales contests are the third... And they can be incredibly damaging. Imagine being the grill cook on a steak sales night, or consider what happens to sales when the whole team is trying to sell dessert, which increases dine time on a night that there is already a wait. There are so many hidden parts here...

Find out about all of the alternatives to these HERE.

Now here are 3 metrics that we believe operators are missing out if they don't use.

1. Employee workload protection
2. Productivity
3. Cover count

-> Cover count is ALWAYS the first piece of data I encourage any operator to look at. If they don't track this number, they are leaving money on the table 100% of the time.

-> Productivity is the only true way to negate rising cost without increasing prices, or just cutting harder. Check out how we support restaurants on this strategy HERE.

-> Employee workload protection... "A proactive strategy put in place in order to protect the biggest asset(people), from undue stress, mental or physical injury, and burnout. If you can reduce undue stress, injury and burnout, you will reduce turnover. Find out more about this core strategy HERE

At the end of the day, the industry just isn't the same as it used to be, so we need to continue to look at new ways to strategize and operate our businesses in order to stay ahead.

Until next week,

Jim

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Oh and one last thought...

Whenever you are ready here are a few other ways I help restaurateurs every day.

• If you are a restaurant operator or owner who realizes that increased productivity, improved employee workload, and lower turnover are the only responsible ways to succeed in our industry these days... I've got you covered. Let's connect for a discussion. DM me at?Jim Taylor , email me [email protected] or you can even text me at 6047898991.

(Don't worry, I won't try to sell you anything.)

• If you are a consultant, or service provider to the restaurant industry and you are wondering how to create opportunity, looking to build your business in 2023, or find it to be lonely as a solo-preneur there is a spot for you right?here ?and I would love to meet you.