RESTAURANT TECHNOLOGY KPIs
The Interactive Guide to
SEARCH KPIs BY BUSINESS MATURITY
SEARCH KPIs BY FUNCTIONAL CATEGORY
MARKETING
SALES
SERVICE & OPERATIONS
PRODUCT
FINANCIALS
LABOR MANAGEMENT
INDEPENDENT
MULTI-UNIT
ENTERPRISE
FROM SURVIVAL TO STABILITY
FROM PLATEAU TO GROWTH
FROM GROWTH TO GREATER GROWTH
KEY CONTRIBUTORS
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Gross Sales
Net Sales
Average Order Value (AOV)
Traffic
Contribution Margin
Item Popularity
Inventory Turnover Rate
Server Errors Per Guest
Tips %
Training Compliance
Cost of Overtime/Net Sales Ratio
Overtime Hours/Total Hours
Overtime/Employees
Turnover Rate
DEFINING BUSINESS MATURITY LEVELS
Restaurant Stage
Focus
IT
KPI Objective
Need
Tech Proficiency
New Concept
From survival to stability
No internal IT (3rd party)
Learning Mode
Basic Guidance
Basic (3rd Party)
Group
From plateau to growth
Some IT
Tuning Business
Specific Interventions
Basic-Medium (3rd, 1st)
Enterprise
Growth to greater growth
Dedicated IT
Competitive Advantage
Benchmarks
High (1st primary, 3rd)
INDEPENDENT
MULTI-UNIT
ENTERPRISE
TRAFFIC
INDEPENDENT LEVEL MARKETING KPI:
DESCRIPTION
Traffic refers to the number of customer that do business with the restaurant across all channels over a period of time.
HOW IS IT CALCULATED?
Traffic
CLOSE
Traffic
Recency
Customer Return Rate (CRR)
Break Even
Cost of Goods Sold (COGS)
Gross Profit
Labor Cost
Prime Cost
Average Unit Volume (AUV)
Check Average
Per Person Average
Revenue Per Cover
Sales By Day Part
Recency
Average Rating
Time to Resolve Employee Issues
Time To Terminate
Social Media Audience
Item Average Prep Time
Item Relative Profitability
Items Sales Velocity
Customization Frequency
Item Deliverability
Average Customer Dwell Time
Customer Retention
Order Accuracy By Channel
Customer Satisfaction
Inventory Runouts
Number of Disciplinary Issues
Number of Employee Issues
Rent and Marketing
Available Labor Hours
Used Labor Hours
COGS Sales Ratio
Cost of Labor Sales Ratio
Direct Operating Expenses
Net Revenue Per Labor Hour
Operating Cash Flow
Regional Market Sales Comp
REVPASH - Revenue Per Available Seat Hour
Customer Return Rate (CRR)
Data Subject Request (DSR)
DSR Response Time
Customer Lifetime Value
Basket Margin
Basket Popularity
Food Cost Variance
Average Ticket Time
Recipe Compliance
Average Production Time Per Dish
Referral Bonus Awards Redemption
Time to Hire
Time to On Board
Friendly Fraud
Gift Card Fraud
Card Not Present Fraud (CNP)
Total Chargebacks Fraud
Cash Flow
Sales By Menu Items
Sales Actual vs Forecast Ratio
Sales Per Labor Hour (SPLH)
Store Sales By Sq Ft
Profit Margin
Working Capital
Item Quality
Item Price Variance
Social Media Engagement
Customer Acquisition Cost
Loyalty Participation
LTO Conversions
Mobile Engagement
New Customers
Marketing ROI
Delivery Service Provider (DSP) % of Sales
Actual To Planned Labor Ratio
Average Weekly Working Hours/Employee
Avg. Length of Employment
Benefits To Payroll Ratio
Net Revenue Per Labor Hour
Net Revenue Per Server
Employee Retention
Employee Satisfaction (NPS)
Inventory To Sales
Inventory Usage Variance
Equipment Reliability
Open/Close Compliance
Table Turnover Rate
Table Turnover Rate/Server
Occupancy By Day Part
Time To Prepare
Waste
MARKETING
Loyalty Participation
Data Subject Request (DSR)
DSR Response Time
Customer Lifetime Value
Average Rating
Time to Resolve Employee Issues
Time to Terminate
Social Media Audience
Social Media Engagement
Customer Acquisition Cost (CAC)
Customer Frequency
LTO Conversions
Mobile Engagement
New Customers
Marketing ROI
Delivery Service Provider (DSP) % of Sales
RECENCY
DESCRIPTION
HOW IS IT CALCULATED?
Recency measures how much time typically passes between customer visits.
Recency
MULTI-UNIT LEVEL MARKETING KPI:
AVERAGE RATING
DESCRIPTION
HOW IS IT CALCULATED?
The Average Rating metric tracks the customer perception of the restaurant experience through numerous 3rd party sources (e.g. Google, Facebook, Yelp, OpenTable, etc.) and internal sources (customer surveys).
Average Rating
MULTI-UNIT LEVEL MARKETING KPI:
TIME TO RESOLVE EMPLOYEE ISSUES
DESCRIPTION
HOW IS IT CALCULATED?
Copy to follow?
Copy to follow
MULTI-UNIT LEVEL MARKETING KPI:
TIME TO TERMINATE
DESCRIPTION
HOW IS IT CALCULATED?
Copy to Follow?
Copy to follow
MULTI-UNIT LEVEL MARKETING KPI:
SOCIAL MEDIA AUDIENCE
DESCRIPTION
HOW IS IT CALCULATED?
Social Media Audience tracks the number of followers of a restaurant brand's various social media accounts over time.
Social Media Audience
MULTI-UNIT LEVEL MARKETING KPI:
SOCIAL MEDIA ENGAGEMENT
DESCRIPTION
Social Media Engagement tracks the number of content engagement (e.g. likes, repost, mentions) of a restaurant brand's social media account over time. This metric will be specific to each social channel.
Number of customer engagement (e.g. likes, repost, comments, etc.) per social media channel
MULTI-UNIT LEVEL MARKETING KPI:
CUSTOMER ACQUISITION COST (CAC)
DESCRIPTION
HOW IS IT CALCULATED?
The Customer Acquisition Cost (CAC) is the total cost spent to acquire a new customer.
Customer Acquisition Cost (CAC)
MULTI-UNIT LEVEL MARKETING KPI:
DELIVERY SERVICE PROVIDER (DSP) % OF SALES
DESCRIPTION
HOW IS IT CALCULATED?
This ratio tracks the % of DSP sales revenue versus total sales. The primary value of DSP platform is access to new customers. Since DSP orders incur additional service fees and may be less profitable, significant growth in DSP % may reduce overall profitability. Marketing initiatives to convert DSP customers into direct customers will improve profitability while growing the business.
Delivery Service Provider (DSP) % of Sales
MULTI-UNIT LEVEL MARKETING KPI:
MARKETING ROI
DESCRIPTION
HOW IS IT CALCULATED?
Marketing ROI measures the value of a marketing campaign in comparison to the cost of set campaign.
Marketing ROI
MULTI-UNIT LEVEL MARKETING KPI:
NEW CUSTOMERS
DESCRIPTION
The New Customers metric tracks the number of new customers gained over a fixed period of time.
Number of new customers over a fixed period of time
MULTI-UNIT LEVEL MARKETING KPI:
MOBILE ENGAGEMENT
DESCRIPTION
HOW IS IT CALCULATED?
The Mobile Engagement metric tracks the number of mobile engagements over a period of time.
Number of active mobile users over a fixed period of time
MULTI-UNIT LEVEL MARKETING KPI:
LTO CONVERSIONS
DESCRIPTION
HOW IS IT CALCULATED?
LTO Conversions measure the effectiveness of Limited Time Offers (LTO).
LTO Conversions
MULTI-UNIT LEVEL MARKETING KPI:
LOYALTY PARTICIPATION
DESCRIPTION
HOW IS IT CALCULATED?
Loyalty Participation measures the percentage of customers who participate in the restaurant's Loyalty Program.
Loyalty Participation
MULTI-UNIT LEVEL MARKETING KPI:
CUSTOMER FREQUENCY
DESCRIPTION
HOW IS IT CALCULATED?
The Customer Frequency metric focuses on how frequently a customer may visit a restaurant over a given period of time. Rising values may indicate increase loyalty. Unexpected decreases in value may indicate a poor customer experience, competitive pressures, or loss of mindshare.
Customer Frequency
MULTI-UNIT LEVEL MARKETING KPI:
CUSTOMER LIFETIME VALUE
DESCRIPTION
HOW IS IT CALCULATED?
The Customer Lifetime Value is the total net revenue a restaurant makes from a given customer.
Customer Lifetime Value
ENTERPRISE LEVEL MARKETING KPI:
DSR RESPONSE TIME
DESCRIPTION
HOW IS IT CALCULATED?
DSR Response Time measures the average time it takes to complete a customers DSR request. State regulations vary on the time frame restaurants are required to respond.
DSR Response Time
ENTERPRISE LEVEL MARKETING KPI:
DATA SUBJECT REQUEST
DESCRIPTION
HOW IS IT CALCULATED?
The Data Subject Request (DSR) metric tracks the number of customers who request their personal data be deleted from the restaurant and their partners (e.g. Loyalty providers).
Data Subject Request (DSR)
ENTERPRISE LEVEL MARKETING KPI:
CUSTOMER RETURN RATE
DESCRIPTION
HOW IS IT CALCULATED?
The Customer Return Rate (CRR) metric tracks what percentage of customers make repeat visits over a fixed period of time.
Customer Return Rate (CRR)
ENTERPRISE LEVEL MARKETING KPI:
Number of Returning Customers
Total Number of Customers Over a Fixed Period of Time
Total Value of DSP Orders
Total Sales Over a Set Period of Time
Sales Growth
Marketing Cost
Number of LTO Redemptions
Total Number of Offers Extended
Number of Loyalty Customers
Total Number of Customers
Total number of customer visits
Total Number of Unique Customers Over a Fixed Period of Time
Total Cost of Marketing Effort Across Relevant Channels (digital, physical, etc.)
Number of New Customers Created
Average of scores collected over 1st party and 3rd party sources
Average number of days between visits
Customer Frequency
REVPASH - REVENUE PER AVAILABLE SEAT HOUR
DESCRIPTION
HOW IS IT CALCULATED?
RevPASH or Revenue Per Available Seat Hour is a measure of restaurant performance as a factor of time, capacity, and revenue. Low utilization of the available seats and/or low purchases by customers will lead to a low RevPASH.
RevPASH
ENTERPRISE LEVEL SALES KPI:
REGIONAL MARKET SALES COMP
DESCRIPTION
HOW IS IT CALCULATED?
Leverages 3rd party data services for a relative comparison of same-store sales performance with other regional restaurant and retail businesses to identify inconsistent performance. If other retail stores in an area are experiencing a 15% improvement in monthly sales, a restaurant that is only experiencing a 5% improvement is underperforming to market expectations.
Compare variance between same store sales performance with other local businesses over a given period of time
ENTERPRISE LEVEL SALES KPI:
STORE SALES BY SQUARE FOOT
DESCRIPTION
HOW IS IT CALCULATED?
Measure sales performance as a factor of restaurant size. The metric provides some basis for comparison of sales performance of larger stores vs smaller stores.
Sales By Sq. Ft.
Total Sales
Restaurant Total Square Footage
MULTI-UNIT LEVEL SALES KPI:
SALES PER LABOR HOUR (SPLH)
DESCRIPTION
HOW IS IT CALCULATED?
Sales Per Labor Hour is a measure of restaurant efficiency and performance based on factors of sales revenue and labor hours employed.
SLPH
Sales revenue
Labor Hours Used
MULTI-UNIT LEVEL SALES KPI:
SALES ACTUAL VS. SALES FORECAST
DESCRIPTION
HOW IS IT CALCULATED?
Gross sales of stores comparing actual record sales with expected restaurant performance.
Sales Actual vs Forecast Ratio
Actual Sales Revenue
Forecasted Sales Revenue
INDEPENDENT LEVEL SALES KPI:
SALES BY MENU ITEM
DESCRIPTION
HOW IS IT CALCULATED?
This is a measure of sale revenue by category.
Aggregate sales by types of menu items: food, alcoholic drink, and non-alcoholic drink
MULTI-UNIT LEVEL SALES KPI:
SALES BY DAY PART
DESCRIPTION
HOW IS IT CALCULATED?
Sales by Day Part seeks to understand the difference in restaurant sales performance based on time of day.
Measure sales over fixed time periods:
INDEPENDENT LEVEL SALES KPI:
REVENUE PER COVER
DESCRIPTION
HOW IS IT CALCULATED?
Revenue Per Cover describes the average revenue per customer served.
Total Dollar Amount Spent By All Customers
MULTI-UNIT LEVEL SALES KPI:
PER PERSON AVERAGE
DESCRIPTION
HOW IS IT CALCULATED?
The average amount by each customer.
Per Person Average
MULTI-UNIT LEVEL SALES KPI:
CHECK AVERAGE
DESCRIPTION
HOW IS IT CALCULATED?
The Check Average describes the average order value across all customers. This is a performance metric pertaining to check/transactions.
Check Average
Total dollar amount spent by all customers
MULTI-UNIT LEVEL SALES KPI:
AVERAGE UNIT VOLUME (AUV)
DESCRIPTION
HOW IS IT CALCULATED?
The Average Unit Volume refers to annual sales revenue on per store basis.
Average Unit Volume (AUV)
Total Annual Sales
MULTI-UNIT LEVEL SALES KPI:
GROSS SALES
DESCRIPTION
HOW IS IT CALCULATED?
Income associated with the sale of products and services in a restaurant over a given period of time.
Gross Sales
INDEPENDENT LEVEL SALES KPI:
Regional Market Sales Comp
REVPASH - Revenue Per Available Seat Hour
Average Unit Volume (AUV)
Check Average
Per Person Average
Revenue Per Cover
Sales By Day Part
Sales By Menu Items
Sales Actual vs Forecast Ratio
Sales Per Labor Hour (SPLH)
Store Sales By Sq Ft
Gross Sales
SALES
CLOSE
Net Sales
Average Order Value (AOV)
NET SALES
DESCRIPTION
The amount of a restaurant's Net Sales equals its gross sales minus customer discounts (such as Coupon, senior discount, children discount, happy hour discounts) minus customer refunds over a given period of time.
Net Sales
INDEPENDENT LEVEL SALES KPI:
AVERAGE ORDER VALUE
DESCRIPTION
HOW IS IT CALCULATED?
The Average Order Value (AOV) is the average amount of each order.
Average Order Value (AOV)
INDEPENDENT LEVEL SALES KPI:
Total Revenue
Number of Order Placed Over a Fixed Period of Time
Total Revenue
Number of Customers Served
Number of Customers in a Given Time Period
Revenue Per Cover
Breakfast (6am-10am)
Lunch (10am-2pm)
Snack (2-6pm)
Dinner (6pm-10pm)
Late Night/Snack (10pm-2am)
Graveyard (2am-6am)
Total Revenue
Number of Seats
Hours Open
X
BASKET POPULARITY
DESCRIPTION
HOW IS IT CALCULATED?
Tracks the most popular item combinations.
Basket Popularity
Total number of time basket is ordered over give period of time
ENTERPRISE LEVEL PRODUCT KPI:
BASKET MARGIN
DESCRIPTION
HOW IS IT CALCULATED?
The Basket Margin measures the profitability of popular combinations.
Cost of Basket
ENTERPRISE LEVEL PRODUCT KPI:
ITEM PRICE VARIANCE
DESCRIPTION
HOW IS IT CALCULATED?
The item price variance tracks changes in price over time.
Item Price Variance
Item's Highest Price
Item's Lowest Price
MULTI-UNIT LEVEL PRODUCT KPI:
ITEM QUALITY
DESCRIPTION
HOW IS IT CALCULATED?
Measures how frequently item is delivered with acceptable quality.
Item Quality
MULTI-UNIT LEVEL PRODUCT KPI:
ITEM DELIVERABILITY
DESCRIPTION
HOW IS IT CALCULATED?
Measures how frequently item is delivered on time.
Item Deliverability
Number of Times Product Is Delivered on Time
MULTI-UNIT LEVEL PRODUCT KPI:
CUSTOMIZATION FREQUENCY
DESCRIPTION
HOW IS IT CALCULATED?
Measures the frequency customers order a customization when they order a specific item.
Number of Customizations Requested
Number of Item Orders
Customization Frequency
MULTI-UNIT LEVEL PRODUCT KPI:
ITEM SALES VELOCITY
DESCRIPTION
HOW IS IT CALCULATED?
Measures the rate at which an item is sold.
Item Sales Velocity
Number of Items Sold
Time Period
MULTI-UNIT LEVEL PRODUCT KPI:
ITEM RELATIVE PROFITABILITY
DESCRIPTION
HOW IS IT CALCULATED?
This metric measures the profitability of an individual item in comparison to average profitability of all items.
Item Relative Profitability
Item Profitability
MULTI-UNIT LEVEL PRODUCT KPI:
ITEM AVERAGE PREP TIME
DESCRIPTION
HOW IS IT CALCULATED?
Tracks the prep time of high frequency entrees to identify unexpected variance and opportunities to improve efficiency.
Average Prep Time
Total Time Spent Preparing Entree
MULTI-UNIT LEVEL PRODUCT KPI:
ITEM POPULARITY
DESCRIPTION
HOW IS IT CALCULATED?
The Item Popularity measures the number of sales of an individual item in comparison to the sales of all other items.
Item Popularity
INDEPENDENT LEVEL PRODUCT KPI:
CONTRIBUTION MARGIN
DESCRIPTION
HOW IS IT CALCULATED?
The Contribution Margin is the menu price minus the cost.
Contribution Margin
INDEPENDENT LEVEL PRODUCT KPI:
Basket Margin
Basket Popularity
Item Average Prep Time
Item Relative Profitability
Items Sales Velocity
Customization Frequency
Item Deliverability
Item Quality
Item Price Variance
Contribution Margin
Item Popularity
PRODUCT
CLOSE
RECIPE COMPLIANCE
DESCRIPTION
Compares the expected associated ingredients required for the observed number of entree sales with the actual amount ingredients used.
ENTERPRISE LEVEL SERVICE & OPERATIONS KPI:
AVERAGE TICKET TIME
DESCRIPTION
Average Ticket Time measures the average elapsed time between when an order is placed and when the order is served to the customer.
Average Ticket Time
ENTERPRISE LEVEL SERVICE & OPERATIONS KPI:
OPEN/CLOSE COMPLIANCE
DESCRIPTION
HOW IS IT CALCULATED?
Tracks the number of steps that were not properly completed in the Open/Close checklist.
Open/Close Compliance
MULTI-UNIT LEVEL SERVICE & OPERATIONS KPI:
EQUIPMENT RELIABILITY
DESCRIPTION
HOW IS IT CALCULATED?
Tracks the reliability of equipment by monitoring failures and maintenance reports. Higher than normal equipment failure over different types of equipment may indicate electrical problems in the restaurant.
Equipment Reliability
MULTI-UNIT LEVEL SERVICE & OPERATIONS KPI:
INVENTORY USAGE VARIANCE
DESCRIPTION
HOW IS IT CALCULATED?
Comparing the theoretical usage over the actual usage to better understand is portion control correct, is there wastage, theft, etc. At minimum, stores should be doing this on a weekly basis, and high value items might be compared on a daily basis. A common practice is to bonus store managers based on the variance % to ensure they are incentivised to control this value.
Variance = Theoretical / Actual
Theoretical = Quantity of sales x Recipe
Actual = Opening Count + Deliveries - Returns +/- Transfers - Closing Count
MULTI-UNIT LEVEL SERVICE & OPERATIONS KPI:
INVENTORY TO SALES
DESCRIPTION
HOW IS IT CALCULATED?
The Inventory to Sales ratio measures a restaurant's efficiency in using inventory by comparing the value of inventory to total sales. A low value may indicate insufficient inventory with a higher risk of runouts. A high value may indicate overstock conditions with higher waste and unnecessary storage requirements.
Inventory to Sales
MULTI-UNIT LEVEL SERVICE & OPERATIONS KPI:
INVENTORY RUNOUTS
DESCRIPTION
HOW IS IT CALCULATED?
This metric tracks the number of inventory runouts over a given period of time.
Inventory Runout
Number of inventory runouts over a fix period of time
MULTI-UNIT LEVEL SERVICE & OPERATIONS KPI:
CUSTOMER SATISFACTION
DESCRIPTION
HOW IS IT CALCULATED?
Quantitative and qualitative survey of customers for their perspective of the dining experience.
Develop brand-specific survey to measures customer satisfaction on a scale of 0-5
MULTI-UNIT LEVEL SERVICE & OPERATIONS KPI:
ORDER ACCURACY BY CHANNEL
DESCRIPTION
This metric tracks customer complaints for incorrect orders. Rising trend may indicate need for additional training or fradulent customer activity.
Order Accuracy
Total Number of Orders
MULTI-UNIT LEVEL SERVICE & OPERATIONS KPI:
CUSTOMER RETENTION
DESCRIPTION
HOW IS IT CALCULATED?
Customer Retention measures restaurants ability to keep customers.
Customer Retention
Number of Customers at End Period
MULTI-UNIT LEVEL SERVICE & OPERATIONS KPI:
AVERAGE CUSTOMER DWELL TIME
DESCRIPTION
HOW IS IT CALCULATED?
Customer Dwell Time is the average amount of time a customer spends in the store.
Average Customer Dwell Time
Average time customer spends in store
MULTI-UNIT LEVEL SERVICE & OPERATIONS KPI:
TIPS %
DESCRIPTION
HOW IS IT CALCULATED?
The Tips % metric tracks the average tip percentage as an indicator of customer satisfaction.
Total Amount of Tips
INDEPENDENT LEVEL SERVICE & OPERATIONS KPI:
SERVER ERRORS PER GUEST
DESCRIPTION
HOW IS IT CALCULATED?
This metric tracks the number of server errors as a percentage of total guest served. Increasing values over longer tenured employees maybe indicative of inadequate training.
Server Errors Per Guest
INDEPENDENT LEVEL SERVICE & OPERATIONS KPI:
INVENTORY TURNOVER RATE
DESCRIPTION
HOW IS IT CALCULATED?
The Inventory Turnover Ratio measures the rate that inventory is sold, used, and replaced.
Inventory Turnover Rate
INDEPENDENT LEVEL SERVICE & OPERATIONS KPI:
Average Ticket Time
Recipe Compliance
Average Customer Dwell Time
Customer Retention
Order Accuracy by Channel
Customer Satisfaction
Inventory Runouts
Inventory to Sales
Inventory Usage Variance
Equipment Reliability
Open/Close Compliance
Inventory Turnover Rate
Server Errors Per Guest
Tips %
SERVICE &
OPERATIONS
CLOSE
TIME TO HIRE
DESCRIPTION
Time to Hire measures the amount of time it takes to fill a position from the point the position is opened. Unusually high values may indicate a need to adjust the hiring process.
ENTERPRISE LEVEL LABOR MANAGEMENT KPI:
REFERRAL BONUS AWARDS REDEMPTION
DESCRIPTION
Referral bonus is bounty paid to employees for referring new candidates who were hired. This metric is an indicator of employee satisfaction. Employees who enjoy their job ecourage their friends to work with them. Employees who like each other may exhibit better teamwork leading to higher restaurant performance.
Total Amount of Bonus Paid to Employees Who Referred Candidates Hired on a Per Store Basis
ENTERPRISE LEVEL LABOR MANAGEMENT KPI:
BENEFITS TO PAYROLL RATIO
DESCRIPTION
Benefits to Payroll Ratio measures employee benefits as a % of their total wage. Values vary by region and restaurant category.
MULTI-UNIT LEVEL LABOR MANAGEMENT KPI:
AVERAGE LENGTH OF EMPLOYMENT
DESCRIPTION
Average Length of Employment measures the average term of employment across all employees. Longer tenured employees are likely to provide higher quality customer service.
MULTI-UNIT LEVEL LABOR MANAGEMENT KPI:
AVERAGE WEEKLY WORKING HOURS PER EMPLOYEE
DESCRIPTION
Average Weekly Working Hours/Employee measures hours actually worked by each employee on a weekly basis.
MULTI-UNIT LEVEL LABOR MANAGEMENT KPI:
ACTUAL TO PLANNED LABOR RATIO
DESCRIPTION
Actual to Planned Labor Ratio measures actual labor hours used versus planned hours scheduled. Decreasing trends may indicate problems with manager planning (e.g. sending people home early) or employee commitment (not showing up for scheduled shifts).
MULTI-UNIT LEVEL LABOR MANAGEMENT KPI:
USED LABOR HOURS
DESCRIPTION
Tracks the actual use of labor hours over a fixed period of time.
MULTI-UNIT LEVEL LABOR MANAGEMENT KPI:
AVAILABLE LABOR HOURS
DESCRIPTION
Available Labor Hours are the number of hours that a manager has available to assign based on customer demand and employee availability.
MULTI-UNIT LEVEL LABOR MANAGEMENT KPI:
RENT AND MARKETING
DESCRIPTION
HOW IS IT CALCULATED?
Copy to Follow
Copy to follow
MULTI-UNIT LEVEL LABOR MANAGEMENT KPI:
NUMBER OF EMPLOYEE ISSUES
DESCRIPTION
Employee Issues are tracked complaints filed by employees. Increasing trend may indicate problem with management.
MULTI-UNIT LEVEL LABOR MANAGEMENT KPI:
NUMBER OF DISCIPLINARY ISSUES
DESCRIPTION
HOW IS IT CALCULATED?
Disciplinary issues must document repeated failures to perform required by the job functions. Increasing trend may indicate employee does not have the required skills for their position.
Number of Disciplinary Issues
MULTI-UNIT LEVEL LABOR MANAGEMENT KPI:
OVERTIME/EMPLOYEE
DESCRIPTION
Overtime / Employee measures the amount of overtime hours across all employees. Excessive overtime hours are indicative of poor scheduling or the need to hire additional employees.
Total Revenue
Number of Order Placed Over a Fixed Period of Time
INDEPENDENT LEVEL LABOR MANAGEMENT KPI:
OVERTIME HOURS/TOTAL HOURS
DESCRIPTION
Overtime Hours/Total Hours measures the planning effectiveness of labor scheduling. Overtime impacts staff morale, decreases restaurant profitability, and undermines scheduling stability.
INDEPENDENT LEVEL LABOR MANAGEMENT KPI:
COST OF OVERTIME/NET SALES RATIO
DESCRIPTION
HOW IS IT CALCULATED?
Cost of Overtime/Net Sales Ratio quantifies the financial impact of overtime hours in the context of total net sales.
Cost of Overtime/Net Sales Ratio
INDEPENDENT LEVEL LABOR MANAGEMENT KPI:
Referral Bonus Awards Redemption
Time to Hire
Number of Disciplinary Issues
Number of Employee Issues
Rent and Marketing
Available Labor Hours
Used Labor Hours
Actual to Planned Labor Ratio
Avg. Weekly Working Hrs/Employee
Average Length of Employment
Benefits to Payroll Ratio
Cost of Overtime/Net Sales Ratio
Overtime Hours/Total Hours
Overtime / Employee
LABOR
MANAGEMENT
CLOSE
GIFT CARD FRAUD
DESCRIPTION
HOW IS IT CALCULATED?
Tracks the amount of fraudlent gift card activity.
Gift Card Fraud
ENTERPRISE LEVEL FINANCIALS KPI:
FRIENDLY FRAUD
DESCRIPTION
HOW IS IT CALCULATED?
Tracks the amount of credit card chargebacks due to customer forgetting they made the purchase.
Sum of chargebacks where customer acknowledges they made a purchase
ENTERPRISE LEVEL FINANCIALS KPI:
STORE SALES BY SQUARE FOOT
DESCRIPTION
HOW IS IT CALCULATED?
Measure sales performance as a factor of restaurant size. The metric provides some basis for comparison of sales performance of larger stores vs smaller stores.
Sales By Sq. Ft. =
Total Sales
Restaurant Total Square Footage
MULTI-UNIT LEVEL SALES KPI:
SALES PER LABOR HOUR (SPLH)
DESCRIPTION
HOW IS IT CALCULATED?
Sales Per Labor Hour is a measure of restaurant efficiency and performance based on factors of sales revenue and labor hours employed.
MULTI-UNIT LEVEL SALES KPI:
WORKING CAPTIAL
DESCRIPTION
HOW IS IT CALCULATED?
Working Capital is the money that is available to meet current and short term obligations.
Working Capital
MULTI-UNIT LEVEL FINANCIALS KPI:
PROFIT MARGIN
DESCRIPTION
Profit Margin is the amount Total Sales exceeds Total Costs.
MULTI-UNIT LEVEL FINANCIALS KPI:
OPERATING CASH FLOW
DESCRIPTION
HOW IS IT CALCULATED?
Operating Cash Flow describes the flow of cash into and out of the business. It is the cash collected from food and beverage sales minus the cash required to operate the restaurant.
Operating Cash Flow
MULTI-UNIT LEVEL FINANCIALS KPI:
NET REVENUE PER LABOR HOUR
DESCRIPTION
Sales divided into each hour worked by a staff member in a location, to show much sales a single worked hour is generating.
MULTI-UNIT LEVEL FINANCIALS KPI:
DIRECT OPERATING EXPENSES
DESCRIPTION
HOW IS IT CALCULATED?
Direct Operating Expenses are variable costs related to operating the restaurant, but unlike COGS it is not directly related to customer purchase.
Sum up all costs required to operate the restaurant (e.g. cleaning chemicals, toilet paper, paper towels, soap, etc.)
MULTI-UNIT LEVEL FINANCIALS KPI:
COST OF LABOR TO SALES RATIO
DESCRIPTION
The Labor Sales Ratio enables the restaurant to manage labor cost in the context of sales.
MULTI-UNIT LEVEL FINANCIALS KPI:
COGS SALES RATIO
DESCRIPTION
HOW IS IT CALCULATED?
The COGS Sales Ratio enables the restaurant to manage COGS in the context of sales.
COGS Sales Ratio
MULTI-UNIT LEVEL FINANCIALS KPI:
GROSS PROFIT
DESCRIPTION
The Gross Profit represents the difference between the selling price and cost of the ingredients. It does not include operating expenses.
INDEPENDENT LEVEL FINANCIALS KPI:
COST OF GOODS SOLD (COGS)
DESCRIPTION
Cost of Goods is the value of the raw materials used to produce the food.
INDEPENDENT LEVEL FINANCIALS KPI:
BREAK EVEN
DESCRIPTION
HOW IS IT CALCULATED?
The Break Even Point is the point where a restaurant's revenue equals the cost (both fixed and variable) over a period of time. It may be represented as the number of items that need to be sold or as a dollar amount of sales that needs to be achieved.
Break Even Point (# of items sold)
INDEPENDENT LEVEL FINANCIALS KPI:
Friendly Fraud
Gift Card Fraud
COGS Sales Ratio
Cost of Labor Sales Ratio
Direct Operating Expenses
Net Revenue Per Labor Hour
Operating Cash Flow
Profit Margin
Working Capital
Break Even
Cost of Good (COGS)
Gross Profit
FINANCIALS
CLOSE
Total Number of Specific Item Sold
Total Number of Items Sold
Number of Entrees Prepared
Total Profitability
Total Number of Items
Total Number of Times Product Is Delivered
Total Number of Times Product Is Delivered
Number of Times Product Is Delivered with Acceptable Quality
Price of Basket
Basket Margin
FOOD COST VARIANCE
DESCRIPTION
HOW IS IT CALCULATED?
The food cost variance is the difference between actual food cost and expected food cost. Standard Price is defined as the average price of ingredient over time. Standard Quantity is quantity expected to purchase, including allocation for breakage.
Food Cost Variance
Actual Price
ENTERPRISE LEVEL PRODUCT KPI:
Food Cost Variance
Key Contributors TO THE RESTAURANT TECHNOLOGY KPI MATRIX
Global Industry Strategist
HP
Co-Founder & Head of Industry, Restaurants
Aben
Director, Enterprise Solutions
Hughes
Sr. BI Developer
MOD Pizza
Assistant Professor
UNLV Hospitality College
Partner
Results Thru Strategy
Area VP, New Business North America
Oracle Food and Beverage
David Gosman
Tammy Billings
Tim Tang
George Hutto
Cervantes Lee
Christopher Sebes
Robert Peterson
Training Compliance
Table Turnover Rate
Table Turnover Rate by Server
Occupancy By Day Part
Time to Prepare
Waste
Average Production Time Per Dish
TRAINING COMPLIANCE
DESCRIPTION
HOW IS IT CALCULATED?
Employee compliance with restaurant operation requirements. Some examples are: Begin shift and end shift, safety, equipment certification, food safety certification, diversity & inclusion, emergency response, etc.
Training Compliance
INDEPENDENT LEVEL SERVICE & OPERATIONS KPI:
AVERAGE PRODUCTION TIME PER DISH
DESCRIPTION
Measures the average amount of time required to produce a dish.
Average Production Time Per Dish
ENTERPRISE LEVEL SERVICE & OPERATIONS KPI:
TABLE TURNOVER RATE
DESCRIPTION
The Table Turnover Rate measures the efficiency of customers served on a per restaurant basis.
Total number of customers served
MULTI-UNIT LEVEL SERVICE & OPERATIONS KPI:
TABLE TURNOVER RATE BY SERVER
DESCRIPTION
The Table Turnover Rate By Server measures the efficiency of customers served on a per server basis.
Total Number of Customers Served By Each Server
MULTI-UNIT LEVEL SERVICE & OPERATIONS KPI:
OCCUPANCY BY DAY PART
DESCRIPTION
Occupancy by Day Part measures how many parties served on a per day part basis.
Number of guest served during a specific daypart (e.g. lunch vs dinner)
MULTI-UNIT LEVEL SERVICE & OPERATIONS KPI:
TIME TO PREPARE
DESCRIPTION
This metric measures the amount of time required to prepare ingredients prior to food being ordered by a customer.
Time to Prepare
MULTI-UNIT LEVEL SERVICE & OPERATIONS KPI:
WASTE
DESCRIPTION
This metric measures the amount of food waste due to spoilage, meal preparation errors, and over trimming.
Weight the Volume of Food Waste
MULTI-UNIT LEVEL SERVICE & OPERATIONS KPI:
Turnover Rate
Net Revenue Per Labor Hour
Net Revenue Per Server
Employee Retention
Employee Satisfaction (NPS)
Time to On-Board
TIME TO ON-BOARD
DESCRIPTION
Time to On-Board measures the amount of time it takes for a new employee to independently.
ENTERPRISE LEVEL LABOR MANAGEMENT KPI:
NET REVENUE PER LABOR HOUR
DESCRIPTION
Net Revenue Per Labor Hour shows how much sales a single hour of labor is generating. Unsustainably high values may be an indicator of overworked staff and serve as leading indicator for future higher turnover or increasing employee dissatisfaction.
MULTI-UNIT LEVEL LABOR MANAGEMENT KPI:
NET REVENUE PER SERVER
DESCRIPTION
Net revenue per server measures the revenue on a per server basis. Significant discrepancies in this metric across similar positions may indicate performance issues and need for additional training.
MULTI-UNIT LEVEL LABOR MANAGEMENT KPI:
EMPLOYEE RETENTION
DESCRIPTION
Employee Retention measures the percentage of employees who stay with the company over a period of time.
MULTI-UNIT LEVEL LABOR MANAGEMENT KPI:
EMPLOYEE SATISFACTION
DESCRIPTION
Employee Satisfaction (NPS) tracks employee satisfaction through regularly scheduled surveys. Increasing employee satisfaction reduces turnover, which increases customer experience.
MULTI-UNIT LEVEL LABOR MANAGEMENT KPI:
TURNOVER RATE
DESCRIPTION
Turnover Rate tracks the percentage of employees leaving a company over a fixed period of time. High turnover rate signifcantly increases labor cost.
Total Revenue
Number of Order Placed Over a Fixed Period of Time
INDEPENDENT LEVEL LABOR MANAGEMENT KPI:
Labor Cost
Prime Cost
Cash Flow
Card Not Present Fraud (CNP)
Total Chargebacks Fraud
CARD NOT PRESENT FRAUD (CNP)
DESCRIPTION
With the growth of curbside pickup and native delivery, every brick and mortar restaurant has become an mobile online business which is dependent on credit card transactions where the card is not physically available for a chip verification. CNP fraud tracks chargebacks due to illegitimate credit card transactions.
ENTERPRISE LEVEL FINANCIALS KPI:
TOTAL CHARGEBACKS FRAUD
DESCRIPTION
HOW IS IT CALCULATED?
Tracks volume of chargeback fraud. Increasing level of fraud may require investment in countermeasures.
Chargebacks Fraud
ENTERPRISE LEVEL FINANCIALS KPI:
LABOR COSTS
DESCRIPTION
Labor Cost includes all expenses associated wtih employee labor, including wages, bonuses, overtime, and benefits.
INDEPENDENT LEVEL FINANCIALS KPI:
PRIME COST
DESCRIPTION
HOW IS IT CALCULATED?
Prime Cost is the combination of Cost of Goods (COGs) and Labor cost. Managing prime costs enables a restaurant to improve profitability without increasing prices.
Prime Cost
INDEPENDENT LEVEL FINANCIALS KPI:
CASH FLOW
DESCRIPTION
HOW IS IT CALCULATED?
Cash Flow measures movement of cash in and out of the restaurant.
Cash Flow
INDEPENDENT LEVEL FINANCIALS KPI:
Summary of all orders during defined time period
HOW IS IT CALCULATED?
Gross Sales
Customer Discounts
Customer Refunds
LABOR MANAGEMENT
CLOSE
CLOSE
CLOSE
CLOSE
CLOSE
CLOSE
Total Contribution Margin
Total Number of Items Sold
Total Number of Operating Stores
Number of tickets in a given time period
Avg. Spend Per Month
Monthly Customer Churn Rate
Gross Margin
X
Price of Basket
Cost of goods sold
Average inventory value for the same period
Number of Guests Served
Number of Errors Made
Total Sales Revenue Over Fixed Period of Time
Tip %
Number of Compliant Employees
Total Number of Employees
Number of New Customers
Number of Customers at the Beginning of Time Period
HOW IS IT CALCULATED?
Total Number of Orders
Number of Wrong Order Complaints
Average Inventory Value
Net Sales Value
Total Hours
Outage Hours
Total Hours
Total tasks
Total tasks
Incomplete tasks
HOW IS IT CALCULATED?
HOW IS IT CALCULATED?
HOW IS IT CALCULATED?
HOW IS IT CALCULATED?
HOW IS IT CALCULATED?
HOW IS IT CALCULATED?
HOW IS IT CALCULATED?
Total Kitchen Labor Hours
Total Number of Dishes Served
HOW IS IT CALCULATED?
Recipe Compliance
Initial Ingredient Inventory
Number of Entrees Sold
Final Ingredient Inventory
Amount of Ingredient Needed for Entree
X
Total number of orders
Total aggregate order-to-delivery times
Labor spent preparing ingredients in advance of food orders
Total Weight of Inventory
Waste
Occupancy by Day Part
Table Turnover By Server
Number of Seats Occupied by Each Server's Customers
Table Turnover Rate
Number of seats occupied
Cost of Paid Overtime Hours
Total net sales
HOW IS IT CALCULATED?
Overtime Hours/Total Hours
Overtime hours
Total Number of Hours Worked
HOW IS IT CALCULATED?
Overtime/
Employee
Total Number of Overtime Hours
Total Number of Employees
HOW IS IT CALCULATED?
Turnover Rate
Number of Employees Who Leave
Total Number of Employees Over Fixed Time Period
Sum of disciplinary actions over the time period of employment
HOW IS IT CALCULATED?
Number of Employee Issues
Sum of complaints filed by employees
HOW IS IT CALCULATED?
Available Labor Hours
Number of Hours Available to Assign
HOW IS IT CALCULATED?
Used Labor Hours
Sum of Labor Hours Over a Given Period of Time
HOW IS IT CALCULATED?
Actual Planned Labor Ratio
Hours of Labor Actually Used
Hours of Labor Planned
HOW IS IT CALCULATED?
Average Weekly Working Hours/Employee
Total Hours Worked by Each Employee Over the Last Month
4
HOW IS IT CALCULATED?
Average Length of Employment
Sum Total Tenure of All Employees
Number of Employees
HOW IS IT CALCULATED?
Benefits to Payroll Ratio
Value of Employee Benefits
Total Wage
HOW IS IT CALCULATED?
Net Revenue Per Labor Hour
Sales
Number of Employees Worked in the Defined Hour
HOW IS IT CALCULATED?
Net Revenue Per Server
Net Sales for Each Employee Basis Over a Fixed Period of Time
(e.g. per shift)
HOW IS IT CALCULATED?
Employee Retention
Number of Employees that Stayed Through the Time Period
Total Number of Employees on Day 1
HOW IS IT CALCULATED?
Employee Satisfction (NPS)
Survey Employee Satisfaction Across Multiple Dimensions at Set Intervals
HOW IS IT CALCULATED?
Referral bonus awards redemption
HOW IS IT CALCULATED?
Time to Hire
Number of Days to Hire a Qualified Candidate
HOW IS IT CALCULATED?
Time to On-Board
Number of Days of Work Before an Employee Can Fulfill a Role Independently
Fixed Cost
Average Revenue per Item
Average Cost per Item
HOW IS IT CALCULATED?
COGS
Beginning Inventory
Additional Purchases
Ending Inventory
+
HOW IS IT CALCULATED?
Gross Profit
Sales Revenue
Cost of Goods Sold (COGS)
HOW IS IT CALCULATED?
Labor Cost
Hourly Wage
Number of Hours Worked
X
COGS
+
Labor Cost
Total number of orders across all channels over a give period of time
Size of social media audience over time
HOW IS IT CALCULATED?
Social Media Engagement
Mobile Engagement
HOW IS IT CALCULATED?
New Customers
Marketing Cost
Number of customers requesting personal data deletion
Time from restaurant receive DSR request to restaurant fulfilling DSR request
Actual Qty
Standard Price
Standard Qty
X
X
Cash In
Cash Out
(over a fixed period of time)
COGS
Sales
HOW IS IT CALCULATED?
Labor Sales Ratio
Cost of Labor
Sales
Direct Operating Expenses
HOW IS IT CALCULATED?
Net Revue Per Labor Hour
Sales
Number of Hours Employees Worked in the Defined Hour
Cash from Sales
Cash for Operations
HOW IS IT CALCULATED?
Profit
Total Sales
Total Costs
Total of funds available to meet short term obligations
SPLH
Sales Revenue
Labor Hours Used
Friendly Fraud
Sum of fraudulent gift card purchases
HOW IS IT CALCULATED?
CNP Fraud
Sum of fraudulent credit card transactions
Total volume of charge back fraud over a fixed period of time
