KPIs for restaurant owners

Known as KPIs, these are data that can help you determine if your restaurant is on track to achieve your goals. KPIs will help you prioritize and determine if you’re spending too much time and money on something that isn’t worth it.

What are KPIs?

Known as KPIs, these are data that can help you determine if your restaurant is on track to achieve your goals. KPIs will help you prioritize and determine if you’re spending too much time and money on something that isn’t worth it.

What are the most important KPIs for the catering industry?

There are many different metrics that can potentially be relevant to restaurateurs. Most often, however, restaurant owners focus on these three categories:

  • Sales and profitability KPIs
  • Customer Experience KPIs
  • Marketing KPI

Sales and profitability KPIs

  • Profit on goods sold

Profit on goods sold helps to measure the amount of money that is spent on purchasing supplies and ingredients for menu items. Perhaps, when you compare food cost and sales profit from a given dish, you will come to the conclusion that it pays off to shorten the menu by a few items.

  • Percentage of labor costs

Knowing the percentage of labor costs, you know what percentage of sales profit you can spend on employee remuneration, which will allow you to better control your budget. Calculating costs correctly allows you to see red flags and make corrections on the fly.

Formula: (salary paid to all employees of the company/profit from monthly sales) x 100

  • Employee turnover rate

Employee turnover rate refers to the number of employees who leave your restaurant to the average annual number of employees. If you factor in the expenses of finding, hiring, and training new employees, higher-than-average employee turnover could prove to be a costly problem for your restaurant. Count the cost of hiring a new employee. Knowing the amount, you will know whether it is profitable for you to, for example, give a raise to employees with long experience, invest in their training and their further development. Remember about opportunity costs. Searching for new employees will not only cost you a lot of money, but also time and energy that you could spend on other activities.

Formula: (number of people leaving the company / average number of employees) * 100

Customer Experience KPI

Every restaurateur is aware of the importance of customer satisfaction. Sometimes one negative opinion can ruin a restaurant’s reputation and discourage its future customers from visiting the restaurant – that’s why each positive opinion is worth its weight in gold. Current observation of customer experiences helps in finding errors and their effective prevention.

  • Online reviews 

The number of internet reviews, as well as average scores on Google My Business, Facebook, Tripadvisor, Yelp, or food delivery platforms, are very important data. Positive opinions on the Internet have a direct impact on the restaurant’s profit. According to a Harvard Business School report, a one-star drop on Yelp’s review site reduces restaurant revenue by 9%. Luca & Zervas’s research from 2016 shows that a 1-star improvement is associated with a 19% increase in restaurant profit.

  • Customer retention rate

The customer retention rate in your restaurant is the percentage of people who continue to visit our restaurant after a certain period of time.
This KPI is of great value when you consider the cost of acquiring new customers. To keep growing your restaurant, you need to make up for every lost customer, not just attract new ones. Your customer retention rate also helps to measure how loyal your current consumers are, and therefore how good your customer service is.

Formula: (number of clients at the beginning of the period x / number of clients at the end of the period x) * 100%

Marketing KPIs

At a time when a poor website and a lack of social media presence have an impact on the profitability of your business, effective monitoring of promotional channels and developing a strategy that connects all marketing activities is crucial.

Social involvement indicators

Social media can be a lot of time and effort. All of the following metrics measure the level of interaction between your restaurant’s social media profile and current and potential customers:

  • Likes: The number of times the “Like” buttons were clicked on your post.
  • Comments: Number of comments on your posts.
  • Shares: How many times has a post been shared on Facebook, Instagram, or retweeted on Twitter.
  • Engagement Rate: Measures the level of interaction between your social media account and your audience. It is calculated as the total number of interactions received under your post content divided by the total number of followers multiplied by 100%. Put simply – this is a measure of how well your content is doing, regardless of the number of followers.

A social media reporting tool such as SocialPilot, Sendible, and Hootsuite can help you collect this data. The data can also be found in the statistics/reports tab in the administration panel of a given social media channel.

Site traffic indicators

A thriving website means more commission-free orders and increased recognition of your premises on the web. Data about who visits your website, how much time they spend on it, and what actions they take can be found in Google Analytics.

  • Sessions by Channel: A useful way to look at traffic is to break it down by referral source. Analyzing the number of people who visit your site in organic, referrals, social, or paid media gives you a general idea of ​​which channels are generating the most traffic to your site.
  • Keyword rankings and search traffic: By monitoring your keyword rankings, you can evaluate the terms on which users search for your website.
  • Site engagement: Bounce rate (the percentage of visitors that leave your site after viewing only one page) is another important metric. If user engagement with your content is a priority for your business, in addition to the bounce rate, take a look at the average number of pages per session.
  • Conversions: The conversion rate tells us how many people out of the total number of visitors of your website performed a certain action. It is one of the most important factors that allow you to check whether you are achieving the goals have set for your business. When running restaurants, you can measure, among other things, the number of telephone bookings or the number of online orders placed through your website.


Once you’ve chosen your KPI and collected all the data, You need to analyze the information carefully to understand why your restaurant is performing both well and bad.


However, that as important as setting and tracking KPIs, it should be tied to your restaurant’s overarching goal. So, if you want to improve the customer experience in your restaurant, remember to check the opinion of your customers. If your goal is to increase sales through your website, read more about Google Analytics. Thanks to the ongoing analysis and comparing the increases or decreases of individual indicators, you will find out whether your restaurant is approaching the achievement of a specific goal and how effective your actions are.


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Papukurier sp. z o.o.
ul. Sowińskiego 18A, 60-283 Poznań
tel. +48 506 199 047

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