Restaurant owners have a lot on their plates (no pun intended). It might be tough to find the time to analyze restaurant analytics and implement new ideas because of the demands of maintaining customer happiness, having a productive work environment, and operating a successful business.
Businesses can't survive, much less thrive, in today's world without evaluating data. True success in the restaurant industry can only be achieved by owners who use these insights to form conclusions and implement improvements in their businesses. Most restaurants are highly unlikely to survive the first few years of existence due to the fast-paced and competitive industry.
In fact, according to research based on BLS data, the average longevity of an eatery in the Western United States is just 4.5 years long. To stay in business for more than five years, restaurant operators must regularly evaluate their operation against their own goals and industry standards.
Many restaurant software systems are now on the market, and it can be challenging to find one that meets all of your requirements without spending a lot of money. The finest restaurant online ordering software should allow you to handle orders and give you the greatest restaurant statistics, which will enable you to improve restaurant processes and enhance profitability.
Why Are Restaurant Metrics Important?
When it comes to running a profitable restaurant, there are several measures you should keep an eye on. By analyzing such metrics, restaurant managers can see how well their establishment is doing and where they may make adjustments. It takes time and effort to turn your restaurant into a profitable enterprise.
As a result of these restaurant measurements, your job is made simpler while allowing you to focus on the most pressing issues. Many expenses impact a restaurant's net profit; therefore, changing just one of them will not have a big impact. For this reason, you must monitor all restaurant metrics to run a successful business.
Important Restaurant Metrics
Let's take a look at some of the metrics restaurants should measure:
1. Cost Of Goods Sold
This is a way for restaurants to track their money on things like menu components. This lets you determine how successful your business handles its supplies and might help you plan for future purchases. Add your starting inventory to the purchases completed during the allotted period and then subtract your final inventory amount from it to calculate this metric.
2. Gross Profit
After deducting the cost of items sold, a restaurant's gross profit represents the remaining revenue. Using this indicator, eateries may assess their profitability and decide whether or not they've made a profit. Your gross profit can be calculated by adding up all of your sales income and then deducting your cost of products.
3. Prime Cost
The total of all labor costs (salaries, hourly wages, incentives, etc.) and the Cost of Goods Sold is the prime cost of a restaurant. Its prime cost accounts for approximately 60% of a restaurant's overall sales. As it reflects most of a restaurant's controllable costs, the prime cost is a crucial indicator.
There is no way to manipulate monthly or weekly rent payments, but you can reduce prime costs by properly handling your staff. Therefore, the primary cost of a business indicates the primary area in which a restaurant manager can optimize costs and profits by reducing expenditures.
4. Employee Turnover Rate
A company's employee turnover rate measures the number of employees that quit or moved on during a specified time. This indicator can be useful in measuring how satisfied your restaurant's staff are. Using this method, you can see how well you're retaining employees and giving them room to grow within your organization.
5. Table Turn
The amount of time that elapses from the moment a customer is seated and the period they clear their bill and depart is known as the "table turn." Your restaurant will make more money if you have a faster turnover of tables. It is important to keep track of this metric to discover trends and pinpoint areas for development.
Even though customers should not be rushed, organized restaurants and a speedy check return are fantastic ways to ensure that table turn isn't affecting your profit margins.
How Can Analyzing Metrics Through A Restaurant Online Ordering Software Help Restaurants?
Here are some benefits of it:
1. Get An Understanding Of How Good Your Menu Is
You'll be able to learn more about your customers' tastes if you're able to keep a record of customer data. It's helpful to know, for example, what their favorite dishes are, as well as what's being ordered and when. In addition, you learn which food item should be eliminated in favor of a more profitable one. The system can also keep tabs on how well each food item works.
This will make it easier for you to keep track of your inventory. By using a POS restaurant system and a restaurant online ordering software, you can get in-depth reports to revamp your menu and develop special deals to fit the needs of your consumers.
To further enhance your website's usability, you can experiment with multiple CTAs and menu positions to see what works best for you. A well-designed menu may both attract customers and delight them. It can help reduce food prices and waste by reducing the amount of wasted food. On the other side, a bad menu might hurt a restaurant's revenue.
2. Use Customer Data To Make The Right Changes
Your customers' preferences must be considered if you wish to remain competitive. It's possible to find out which foods are most popular with your clients based on the data you collect and then modify your menu accordingly.
Take, for example, whether customers are choosing to try anything else instead of a certain meal that they don't like. You need to integrate client feedback with data analytics to get to the bottom of the problem. If the dish has a terrible flavor, it should be removed or modified. You'll be able to better serve your clients and provide them with superior meal options if you have the appropriate information.
3. Create An Effective Marketing Strategy
A restaurant CRM system can be used to collect and combine customer information. You get a clearer picture of your data when you centralize management. You can develop numerous statistics based on your customer's buying trends and spending habits. In addition, these statistics can be used to deliver personalized emails, messages, promotions, loyalty programs, and more.
Each time a discount voucher is redeemed, you'll learn which promotional strategies are having an effect. It will assist you in developing a more effective marketing plan. Tracking social media metrics like Facebook likes can help you better sell your products and reach more of your target audience.
4. Use Customer Data To Create Discounts And Deals
You can experiment with various menu pricing alternatives to see which one is most profitable. Moreover, keep a record of transactions and feedback to different offers and discover which combinations succeed. You'll have more control over menu prices this way. If you know how to make the most of customer data, it can be a great asset to your company.
You can quickly determine which days of the week are busiest or slowest by looking at customer data. Consider using specials such as BOGO (buy one, get one free). Your revenue will rise with these kinds of deals, especially during slow times. It can assist you in making wise decisions and implementing effective marketing strategies.
2. It Can Help Predict Future Trends
Predictive analytics can help you handle the cost of food as you'll be able to see how much food you have in the inventory in the past and the present moment. You won't waste food if you do this since you can purchase the right amount for your needs. Analyzing can help you determine which items are most popular at certain times of the day so that you can buy them then.
MenuCRM – A Comprehensive POS And A Restaurant Online Ordering Software
Restaurant information is essential in today's society. It gives you a clear picture of how your organization is performing and identifies areas for improvement. If you don't comprehend and organize these metrics in such a position that enables you to swiftly apply wise changes, they won't help your business in any capacity.
When it comes to managing these indicators, ensure your POS restaurant system enables secure management so that you may increase productivity in your restaurant without concern. If you're looking for reliable, comprehensive software for your restaurant, MenuCRM might be the answer.
By implementing this software, restaurants can provide their customers with a better online ordering experience. Businesses can use this software to display their menus online, allowing consumers to place their orders.
Furthermore, it provides restaurants with a customer loyalty program that can help them improve the number of digital orders they receive from customers. With the software's various means of communication, restaurants can distribute newsletters, email promotions, and text messages to their customers.
To see how our restaurant online ordering software may help you, sign up for a demo or start a conversation with us.