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🍽️📊 Attention Restaurant Owners! 📊🍽️ Business key figures are more crucial than ever, especially in the restaurant industry where profitability depends on precise numerical management. Many restaurants still rely on outdated methods, which just don't cut it in today's competitive environment. It's time to think like a businessperson! Embrace a professional approach by tracking key performance indicators (KPIs). Regularly monitoring these KPIs provides valuable insights, helping you make strategic decisions to keep your business profitable. Here are some fundamental KPIs every restaurant should keep an eye on: ✔️Sales Revenue ✔️Cost of Goods Sold (COGS) ✔️Labor Cost Percentage ✔️Customer Retention Rate ✔️Table Turnover Rate Remember, additional KPIs may be needed based on your specific type of restaurant and market. Stay ahead of the game and ensure your restaurant's success with the right KPIs! 📈🍴 Learn more: https://hubs.ly/Q02DRv7P0 #RestaurantBusiness #KPIs #BusinessSuccess #RestaurantManagement #Profitability #Trivec

CAVA (~$35M/restaurant) and Chipotle Mexican Grill (~$20M/restaurant) far outperform other industry comps for valuation per location. What's their secret? A recent conversation with investor Andy Giacone from Roark Capital summed it up brilliantly: "I've done due diligence on a LOT of public and private restaurants. One of the assets that consistently leads to the highest valuations is the robustness of a brand's loyalty program. For B2C businesses, a scale and high-performing loyalty program is almost as important as recurring revenue in B2B." Why? Performant loyalty programs offers predictability and therefore downside protection while also making it far easier to achieve robust future growth. McKinsey & Company concurs: "While growth is difficult to sustain, it is generously rewarded. In examining 15 major publicly traded restaurant companies... there was a more than 80 percent correlation between annualized same-store sales growth and annualized total shareholder returns.... Successful loyalty programs translate directly into financial results, often encouraging both larger order sizes and greater order frequency from program members. These programs can funnel customers into brands’ first-party delivery businesses, which offer the brand higher margins than it receives from orders conducted through third-party delivery services."

How to Calculate Real Revenue Growth Rates for Restaurants https://hubs.la/Q02K2wcC0

How to Calculate Real Revenue Growth Rates for Restaurants https://hubs.la/Q02Hsg5G0

Have you ever wondered why only some restaurant businesses soar? The secret is in their KPIs. KPIs are crucial for restaurant success🎯 They guide decision-making and strategy for both single and multi-unit operators, here's what's essential: Sales Performance📈 - Track daily, weekly, and monthly. Cost of Goods Sold (COGS)💰 - Monitor to control expenses. Labour Cost Percentage👭 - Key for profitability. Table Turnover Rate🍽️ - Optimize dining experience and revenue. Average Revenue per Customer💵 - Increase with upselling strategies📊 Food Waste Percentage♻️ - Reduce to save costs. Customer Satisfaction Scores😊 - Ensure repeat business. Online Review Scores🌐 - Digital reputation matters. Inventory Turnover🔄 - Keep stock fresh and costs low. Employee Turnover Rate👨🏽🍳 - Stability boosts performance. Prime Cost💹 - Combine COGS and labour for a big picture view. Gross Profit Margin💰 - Understand overall financial health. Break-Even Point⚖️ - Know your survival metrics. Net Profit Margin💲 - Ultimate indicator of success. Cash Flow💸 - Ensure operational liquidity. Return on Investment (ROI)📈 - Measure the effectiveness of investments. Energy Consumption Rate🔌 - Save costs and support sustainability. Employee Satisfaction😀 - Happy staff, happy customers. Compliance Rate📚 - Stay within legal and regulatory boundaries. Master these KPIs to drive your restaurant to the top🚀 #RestaurantManagement #HospitalityIndustry #BusinessMetrics

There have now been 14 bankruptcies in restaurant chains with $20+ million in revenue this year, the highest number since 2020. This is up 133% compared to 2022 when 6 large chains with at least $20 million in annual revenue went bankrupt. This comes as restaurants have been materially hit by elevated interest rates, rising labor costs, and declining sales. Revenues are declining as US consumers are eating out less often due to inflation. Restaurant prices have increased by ~44% over the last decade, according to Black Box Intelligence. Contact us today, and let us demonstrate how can elevate your portfolio to new levels Contact Us: https://lnkd.in/gy7_gSAb Website: alphabinwanicapital.com #Investing #ThematicInvesting #AI #Restaurants

Looking to cut costs in your restaurant or cafe? Focus on increasing sales while optimizing operations. Boosting revenue helps spread fixed costs, but reducing labor and food costs is also essential. Here’s a comprehensive approach to improve your bottom line: 1. Optimize Menu & Portion Control: Focus on high-margin items, streamline your menu to reduce waste, and standardize portion sizes to avoid over-serving. 2. Streamline Staff Scheduling & Cross-Training: Use scheduling software to match staffing to peak hours and train employees to handle multiple tasks, reducing labor costs. 3. Negotiate with Suppliers: Build strong relationships to secure better deals. Buy in bulk and consider seasonal ingredients to lower food costs. 4. Minimize Food Waste: Regularly check inventory, use older stock first, and creatively repurpose ingredients to avoid waste. 5. Increase Sales with Upselling & Customer Retention: Maximize each transaction through upselling and expand services like delivery and catering. Implement loyalty programs to keep customers coming back. 6. And it is a very important point Investing in your team is crucial. By training and developing staff, their skills are enhanced and customer interaction is improved. By providing better service and engagement, a team that is motivated and well-trained can lead to higher sales. Ultimately, the real investment in a business is not just in the brand, location, or design but in the people who will propel the business forward. Implementing these strategies drives efficiency and sales, ensuring long-term profitability. #RestaurantManagement #CostReduction #IncreaseSales #Hospitality #BusinessGrowth #RevenueOptimization #FoodAndBeverage #Efficiency #Upselling #CustomerRetention #SupplierNegotiation #LaborEfficiency #MenuEngineering #EnergySavings #PortionControl

Is your restaurant flying blind? 📉💸 Without benchmarking, it’s hard to know if your brand is falling behind. Here’s why it matters: 🔍Spot Gaps & Improve: Comparing your metrics (e.g., sales, food costs) to industry standards helps you see where you can improve. 🥅 Set Clear Goals: Knowing where you stand allows you to set realistic targets, whether it’s boosting revenue or cutting costs. 🏆 Stay Competitive: Learn what successful brands are doing right, adapt, and innovate to maintain your edge. 💰Boost ROI: A structured benchmarking process can drive growth and help optimize investments. Benchmarking helps you understand precisely what factors have the biggest impact on traffic and sales for your business.

The restaurant industry is in serious trouble!!! Especially if it keeps chasing % as success measures. Check it out some challenges and measures below, 1) Chasing labor cost % often forces management to cut harder than they should. Causing a decline in ATV or guest spend and increased turnover. Not counting bills or transections and comparing it vs LY (last year) 2) Chasing COGS or food cost % often forces management to design menus that aren’t profitable. COL or labour % -> Look at productivity scores in order to get the % to where you want it. COGS or food cost % -> Look at variance to theoretical to accomplish the cost % that is right. Apply to your business not just KPI’s also apply OKR’s to ensure those KPI’s are achieved. #growth #businessstrategy #businessplan #revenuincrease #hospitality #KPI

IMPORTANCE OF BENCHMARKING  Last week I had a clear example of why it's important to measure your performance not only against yourself (as 99% of F&B businesses do) but also against the competitors: a colleague who manages a group of retail stores is under pressure because this year they will not reach the budget (around -5%) and he will has to explain and "defend" his management to the owners. The first question I made (ofc): how is your specific market doing? direct competitors? Obviously he couldn't answer me because he doesn't know the answer but this is so important information for understanding your business and your market. Let's imagine that many of its competitors have done worse than them, its position in front of the group and the ownership will change completely and will determine a new fundamental strategy for the following months. This is what we do, we help bars, restaurants, hotels and any F&B related business to measure their performance against the competitors on a daily basis. If you want to know more book a Demo or write to us at [email protected] https://lnkd.in/dXTduzAJ