Understanding Restaurant Analytics: Key Metrics to Track
Master the essential metrics every restaurant owner should monitor. From table turnover to food cost percentage.
Sophie Williams
Understanding Restaurant Analytics: Key Metrics to Track
Data-driven decision making is crucial for restaurant success. Here are the essential metrics you should track.
Revenue Metrics
Total Sales
Track daily, weekly, and monthly sales to understand revenue trends.
Average Order Value (AOV)
Calculate by dividing total sales by number of orders. Higher AOV means more revenue per customer.
Sales per Seat/Hour
Measure revenue efficiency by tracking sales per available seat per hour.
Operational Metrics
Table Turnover Rate
How many times a table is used per service period. Higher turnover means more revenue.
Ticket Time
Time from order placement to food delivery. Faster service improves customer satisfaction.
Food Cost Percentage
Food costs divided by food sales. Industry average is 28-35%.
Labor Cost Percentage
Labor costs divided by total sales. Target is typically 25-35%.
Customer Metrics
Customer Count
Track daily customer visits to understand traffic patterns.
Repeat Customer Rate
Percentage of customers who return. Higher rates indicate strong loyalty.
Customer Lifetime Value (CLV)
Total revenue expected from a customer over their relationship with your restaurant.
Menu Performance
Item Popularity
Which items sell most frequently. Use this for menu optimization.
Profitability by Item
Not all popular items are profitable. Track both popularity and margins.
Menu Mix
Percentage of sales from each menu category. Helps balance offerings.
Using Your POS Data
Modern POS systems provide:
- Real-time dashboards
- Customizable reports
- Historical comparisons
- Trend analysis
- Predictive insights
Actionable Insights
Use metrics to:
- Optimize menu pricing
- Adjust staffing levels
- Improve operations
- Identify opportunities
- Make strategic decisions
Common Mistakes
- Tracking too many metrics (focus on what matters)
- Not reviewing regularly
- Ignoring trends
- Not acting on insights
- Comparing incomparable periods
Conclusion
Effective analytics requires tracking the right metrics, reviewing them regularly, and taking action based on insights. Your POS system provides the data—your job is to use it wisely.