LET'S TALK
LET'S TALK
We’ve worked with hundreds of people in the restaurant industry across Europe, and we’ve noticed an interesting pattern: restaurant owners can often be divided into two groups — “numbers people” and “culinary experts.” The most successful businesses strike a balance between the two, achieving sustainable growth without compromising on quality.
In this article, we’ll break down key metrics to help you evaluate your restaurant’s performance and highlight questions you should ask to ensure long-term success.
Revenue Growth:
Monitor and measure revenue growth across different time periods to spot trends. Use this information to analyze seasonality or gauge the effectiveness of sales campaigns.
Profit Margin:
Calculate product input costs, selling prices, and net income after accounting for discounts or delivery platform fees. Focus on profitability without sacrificing quality.
Cost Management:
Take a close look at fixed costs. Are there opportunities to renegotiate contracts with suppliers? Consider streamlining expenses while maintaining service and product standards.
Pro Tip: Dive deep into delivery platform back-office data. Analyze refunds, deductions, and ask for additional insights from delivery platforms — such as upselling metrics, category revenue, and product performance. Use this data to make informed adjustments to your menu, pricing, and promotions.
Customer Satisfaction:
Gather feedback from customers using online surveys or forms. Address complaints promptly and highlight areas where customers feel satisfied.
Number of Loyal Customers:
Track loyalty program memberships and analyze repeat customers. Loyal customers are critical for predictable revenue and can also serve as brand ambassadors.
Social Media and Online Presence:
How does your online presence stack up? Measure metrics like your Google review scores, social media engagement rates, and reach. Proactively resolve negative reviews and celebrate positive feedback publicly.
Pro Tip: Create targeted delivery platform promotions (e.g., discounts for returning or new customers) to encourage repeat orders and loyalty.
Monitor Service and Kitchen Speed:
Efficiency starts with timing. From greeting guests to delivering meals, every second counts. In delivery orders, ensure timely preparation and dispatch to maintain high customer satisfaction ratings.
Employee Turnover:
A high turnover rate can impact consistency and team morale. Conduct 1:1 conversations with team members to understand and address their challenges before they decide to leave.
Inventory Management:
Measure food waste and use automated inventory systems to track stock levels. Tools like SPINDL OS can also ensure that menus on delivery platforms are up-to-date, preventing stock-outs and ensuring accuracy.
Pro Tip: Analyze delivery platform metrics to identify peak hours and align staffing levels accordingly.
Competitor Analysis:
Compare your offerings, prices, and brand positioning with competitors. Identify your strengths and areas where you can stand out, whether through unique dishes, better pricing, or superior customer service.
Brand Awareness:
Evaluate how visible your brand is in your community and beyond. Use social media and targeted ads to promote your business and attract new customers.
Pro Tip: Use delivery platform banners or featured placement to increase visibility and attract more online orders.
Menu Analysis:
Identify which menu items are customer favorites and ensure that they are both profitable and high quality. Regularly review and update your offerings to reflect customer demand.
Keeping Up with Trends:
Even traditional establishments can benefit from innovation. Consider incorporating popular trends, such as eco-friendly packaging for deliveries or creative plating for dine-in orders.
Pro Tip: Include dietary icons (e.g., vegetarian, vegan, or gluten-free) on your delivery menu to cater to specific customer preferences.
Running a successful restaurant requires more than great food — it demands consistent evaluation, innovation, and a keen eye for opportunities to grow. By focusing on these metrics, you can ensure long-term success while continuing to delight your customers.
Want to dive deeper into your business's performance metrics? Our Game Changer package focuses on profitability analysis, streamlining processes, and increasing delivery profitability.
Let’s work together to create sustainable growth for your restaurant — contact us today for a personalized plan!
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