What are the main KPIs of sales and costs in the restaurant

In the restaurant industry, sales and costs are key areas that need to be tracked to ensure profitability and operational efficiency. The main Key Performance Indicators (KPIs) related to sales and costs typically include:

Sales KPIs:

1. Total Sales Revenue:

• ·?????? Measures the total income generated from all sales within a specific period such as monthly or yearly.
• ·?????? Important for tracking overall performance of restaurant.

Average Transaction Value (ATV):

• ·?????? The average amount spent by each customer in a single transaction.
• ·?????? Formula: Total Sales ÷ Number of Transactions.

1. Revenue per Seat (RPS):

• ·?????? Measures how much revenue is generated per seat in the restaurant.
• ·?????? Formula: Total Sales ÷ Number of Seats.

1. Sales per Square Foot:

• ·?????? Measures how much revenue is generated per square foot of the restaurant.
• ·?????? Formula: Total Sales ÷ Total Square Footage.

1. Sales per Employee:

• ·?????? Tracks how much revenue each employee generates.
• ·?????? Formula: Total Sales ÷ Number of Employees.

1. Table Turnover Rate:

• ·?????? Measures how often tables are occupied during service hours.
• ·?????? Higher turnover generally indicates more customers served.

1. Sales by Menu Category:

• ·?????? Tracks the sales of different categories (e.g., appetizers, soups, main courses, desserts,beverages).
• ·?????? Helps identify best-selling items and areas for menu adjustments.

Customer Retention Rate:

• ·?????? Measures how often customers return.
• ·?????? An important KPI for understanding customer loyalty.

Cost KPIs:

• Food Cost Percentage:
• ·?????? Measures the cost of ingredients as a percentage of total food sales.
• ·?????? Formula: (Cost of Goods Sold ÷ Total Food Sales) × 100.
• ·?????? Typically aimed to be around 28-33%.

1. Labour Cost Percentage:

• ·?????? Tracks the cost of labour as a percentage of total sales.
• ·?????? Formula: (Total Labor Costs ÷ Total Sales) × 100.

·?????? A critical KPI for maintaining profitability, often targeted at 25-30%.

1. Prime Cost:

• ·?????? Combines food and labour costs as a percentage of total sales.
• ·?????? Formula: (Total Cost of Goods Sold + Labor Costs) ÷ Total Sales.

·?????? Should ideally be below 60%.

1. Cost per Seat:

• ·?????? Measures the total cost per seat in the restaurant.
• ·?????? Formula: Total Costs ÷ Number of Seats.

1. Waste Percentage:

• ·?????? Tracks food waste as a percentage of total food cost.
• ·?????? Formula: (Value of Wasted Food ÷ Total Food Cost) × 100.

·?????? Helps control unnecessary losses.

1. Occupancy Cost Percentage:

• ·?????? Measures the cost of rent, utilities, and other overheads as a percentage of sales.
• ·?????? Formula: (Occupancy Costs ÷ Total Sales) × 100.

·?????? Should be in the range of 6-10%.

1. Break-Even Point:

• ·?????? The point at which total revenue equals total costs, and the restaurant starts to make a profit.
• ·?????? Important for understanding how much revenue needs to be generated to cover all costs.

Operational Cost Percentage:

• ·?????? Tracks the costs associated with daily operations, excluding food and labour, as a percentage of total sales.
• ·?????? Helps to keep operational expenses under control.?

These KPIs provide critical insights into both the financial and operational performance of a restaurant and are essential for decision-making and strategy formulation.