Relying on intuition or experience is no longer enough to ensure consistent growth and profitability. To navigate the complexities of modern food service, you need actionable, data-driven insights. Restaurant key performance indicators (KPIs) reflect how well your restaurant achieves critical business objectives. From operational efficiency to customer satisfaction and financial performance, they help you monitor what matters most. However, tracking every available KPI can quickly become overwhelming and counterproductive. Instead, you must identify and focus on the KPIs that align most closely with your restaurant’s goals and stage of growth. Choosing the right restaurant KPIs allows you to measure what truly drives performance, avoid data overload, uncover inefficiencies, highlight opportunities for improvement, and make more strategic decisions.
This article will explore the top KPIs for a restaurant, including operational, safety, employee-based, customer satisfaction, and more, along with steps to choose the right restaurant KPIs. We have also listed free checklists to help you achieve those KPIs.
- What are Restaurant Key Performance Indicators?
- Operational Restaurant Key Performance Indicators
- Hygiene and Safety KPIs for a Restaurant
- Employee Performance KPIs for a Restaurant
- Financial KPIs for a Restaurant
- Customer-Centric Restaurant KPIs
- Marketing KPIs for a Restaurant
- Improve Restaurant Operational Performance with GoAudits
- How Can You Pick the Right Restaurant KPIs to Track?
What are Restaurant Key Performance Indicators?
Restaurant key performance indicators (KPIs) are measurable metrics used by restaurant owners and managers to assess how effectively a restaurant achieves its strategic and operational goals, including its overall health and performance. They include various aspects of the business, including financial stability, customer satisfaction, employee productivity, and operational efficiency. Restaurant KPIs offer insights into areas that require improvement and make informed decisions to enhance restaurant service standards and profitability.
Why are Restaurant KPIs Important?
- They provide quantifiable data to assess how well your restaurant is meeting its goals.
- They help you make strategic choices that are grounded in factual information.
- Monitoring restaurant KPIs helps identify issues promptly, allowing for timely interventions to mitigate potential problems.
- They ensure that all team members are working towards common objectives and facilitate the monitoring of progress over time.
- Comparing your restaurant KPIs with industry standards helps you understand your restaurant’s position in the market and identify areas for improvement.
- Analyzing KPIs for a restaurant enables efficient allocation and utilization of resources, reducing waste and enhancing productivity.
- They enable you to improve service quality, leading to increased customer satisfaction and loyalty.
- They provide insights into profitability, cost control, and overall financial stability.
Top Restaurant Key Performance Indicators
Though we’ll explore these restaurant key performance indicators in detail, here’s a quick overview.
- Operational KPIs measure how effectively your restaurant runs on a day-to-day basis. They highlight process efficiency, resource utilization, and service quality.
- Employee performance KPIs evaluate staff productivity, engagement, and contribution to service excellence. They support better training, improved scheduling, and overall team development.
- Hygiene and safety KPIs assess your compliance with food safety standards. They help you maintain a hygienic environment, safeguard employee well-being, and avoid regulatory penalties.
- Financial KPIs provide a clear picture of your restaurant’s economic health and profitability. They guide budget planning, pricing strategies, and cost control initiatives.
- Customer-centric KPIs measure guest satisfaction, loyalty, and overall experience. They help you refine your service model and build stronger customer relationships.
- Marketing KPIs track the effectiveness of your promotional efforts and brand visibility, enabling you to evaluate campaign performance and refine marketing strategies for better outreach and conversion.
Operational Restaurant Key Performance Indicators
Below is a detailed overview of important operational KPIs for a restaurant:
Table Turnover Rate
It measures how often a table is occupied and vacated during a specific period.
Table Turnover Rate = Total number of parties served ÷ Number of tables
A higher turnover rate indicates efficient table utilization, leading to increased revenue potential.
Average Order Value (AOV)
It represents the average amount spent per customer order.
AOV = Total revenue ÷ number of Orders
Tracking AOV helps in understanding customer spending behavior and can inform upselling strategies.
Labor Cost Percentage (LCP)
LCP indicates the proportion of revenue spent on employee wages and benefits.
LCP = (Total Labor Costs ÷ Total Sales) × 100
Maintaining an optimal LCP ensures profitability while adequately staffing your restaurant.
Revenue per Available Seat Hour (RevPASH)
It measures the revenue generated per seat per hour of operation.
RevPASH = Total revenue ÷ (Available seats × Operating hours)
RevPASH helps assess how effectively your seating capacity contributes to revenue.
Food Cost Percentage (FCP)
This restaurant KPI represents the percentage of sales spent on food ingredients.
FCP = (Cost of food sold ÷ Total food sales) × 100
Monitoring FCP ensures menu pricing covers food costs and contributes to profitability.
Inventory Turnover Ratio (ITR)
It indicates how often inventory is sold and replaced over a period.
ITR = Cost of goods sold ÷ Average inventory
A higher ITR suggests efficient inventory management, reducing waste and holding costs.
Kitchen Prep Time
It measures the average time taken to prepare dishes. You can use POS timestamps to monitor ticket times and kitchen efficiency. Shorter prep times can lead to faster service and improved customer satisfaction.
Order Accuracy Rate
This KPI for a restaurant represents the percentage of orders fulfilled without errors.
Order Accuracy Rate = (Number of accurate orders ÷ Total orders) × 100
High accuracy rates enhance customer trust and reduce waste from incorrect orders.
Food Waste
It measures the amount of food discarded relative to food purchased.
Food Waste Percentage = (Total weight of food waste ÷ Total food purchased) × 100
In the US, a significant portion of food, almost 30% to 40% of food supply is wasted. Monitoring food waste can not only help control costs but also promote sustainable practices.
👉 To further streamline your restaurant’s daily processes, GoAudits restaurant checklist software offers the restaurant operations checklist to maintain consistency and support operational KPIs, the restaurant opening checklist to ensure a smooth start each day, and the restaurant closing checklist to wrap up operations efficiently while reducing errors and waste.
Hygiene and Safety KPIs for a Restaurant
Hygiene and safety KPIs for a restaurant include:
Health Inspection Scores
They reflect your restaurant’s compliance with local food safety regulations. These scores are typically assigned during routine inspections by health authorities. A high score indicates strong adherence to safety standards, while a low score may signal potential risks. Here’s what you can do to improve your scores:
- Ensure staff are trained on food safety protocols.
- Conduct self-inspections to identify and rectify issues before official inspections.
- Keep up-to-date with local health regulations and standards.
Food Hygiene, Quality, and Safety Compliance
Maintaining high standards in food hygiene and safety is crucial for customer trust and regulatory compliance. You should establish and follow cleaning procedures strictly, invest in high-quality cleaning materials and equipment, and encourage staff to prioritize hygiene in all operations. Key areas to monitor include:
- Cleanliness and Hygiene Score (CHS) measures adherence to cleanliness standards. Calculate it by dividing the number of passed inspections by total inspections, then multiplying by 100.
- Compliance with Health and Safety Standards (CHSS) assesses compliance with mandated health and safety regulations. Calculate it by dividing the number of compliant practices by the total required practices, then multiplying by 100.
👉 Free Resources
GoAudits offers a wide range of free hygiene and restaurant cleaning checklists to help you uphold the highest standards.
→ Restaurant Cleaning Checklist Template
→ Restaurant Kitchen Cleaning Checklist
→ Food Safety & Hygiene Checklist
→ Hygiene Standard
→ Personal Hygiene Checklist
→ Food Hygiene Inspection Checklist
→ Food Hygiene Rating Checklist
→ General Cleaning Checklist
→ Cleaning Food Contact Surfaces Checklist
Accidents, Incidents, and Near Misses
Monitoring and analyzing accidents, incidents, and near misses are essential for preventing future occurrences and ensuring a safe workplace.
- Track the total number of reported accidents and incidents. A high number may indicate underlying safety issues.
- Measure the number of near-miss incidents over a period. These are events that could have led to accidents but didn’t.
👉 You can use GoAudits near-miss reporting software to enhance the process of reporting near misses in your restaurant. We also offer a free near-miss incident reporting checklist.
Employee Performance KPIs for a Restaurant
Here are five critical restaurant key performance indicators to track employee performance:
Staff Turnover Rate
It measures the percentage of employees who leave your restaurant over a specific period. A high turnover rate can disrupt operations and increase recruitment and training costs.
Staff Turnover Rate = (Number of departures / Average number of employees) x 100
You can offer competitive compensation and benefits, foster a positive work environment, and provide clear career advancement opportunities to improve the staff turnover rate.
Employee Satisfaction Rate
Assessing employee satisfaction helps identify areas for improvement in workplace morale and engagement. High satisfaction levels can lead to better customer service and reduced turnover. Conduct anonymous surveys focusing on job satisfaction, work-life balance, and management support, and hold regular one-on-one meetings to gather feedback to measure employee satisfaction rate.
Staff Productivity Rate
This KPI for restaurant staff evaluates how effectively they contribute to revenue generation. It helps identify training needs and optimize labor costs.
Productivity Rate = Total revenue / Total labor hours worked
Training Completion Rate
It ensures that employees are adequately trained, leading to consistent service quality and compliance with safety standards.
Training Completion Rate = (Total number of employees / Number of employees who completed training) x 100
👉 You can use the free GoAudits restaurant employee training checklist and server training checklist to improve the training completion rate.
Overtime Hours
Excessive overtime can indicate understaffing and may lead to employee burnout. Monitoring overtime helps maintain a healthy work-life balance for staff and control labor costs.
Overtime Percentage = (Total hours worked / Total overtime hours) x 100
Role-Specific KPIs for Restaurant Staff
While the above KPIs apply to all restaurant employees, some metrics are specific to individual roles.
| Role-Based KPI for Restaurant Staff | |
| KPIs for restaurant chefs | Food cost percentage, food waste ratio, order accuracy rate, prep time efficiency, and inventory turnover |
| KPIs for restaurant managers | Labor cost percentage, table turnover rate, average spend per customer, average revenue gendered per seat, customer retention rate, and employee turnover rate |
| KPIs for restaurant supervisors | Shift attendance rate, staff productivity rate, training completion rate, incident response time, and compliance score, |
| KPIs for restaurant waiters | Sales per server, average revenue per customer served, guest served per hour, order accuracy rate, and customer feedback score |
Financial KPIs for a Restaurant
Focusing on the following restaurant KPIs can help you make informed decisions to optimize operations and financial health.
Operating Cash Flow
Operating cash flow measures the cash generated from your restaurant’s core business activities. It reflects your ability to maintain and grow operations without external financing.
Operating Cash Flow = Net income + Non-cash expenses (e.g., Depreciation) + Changes in working capital
Positive operating cash flow indicates sufficient liquidity to cover daily expenses, while negative cash flow may signal financial challenges.
Cost of Goods Sold (COGS)
COGS represents the direct costs associated with producing the food and beverages sold in your restaurant. Monitoring COGS helps in pricing menu items appropriately and controlling inventory costs.
COGS = Opening inventory + Purchases during the period – Closing inventory
A lower COGS percentage relative to sales suggests better cost control and higher profitability.
Total Sales
Total sales encompass all revenue generated from food, beverages, and other services. Tracking total sales helps in understanding revenue trends and making strategic decisions.
Total Sales = Sum of all revenue streams (e.g., Dine-in, Takeout, Delivery)
Analyzing sales patterns can reveal peak periods and inform staffing and inventory decisions.
Gross Profit and Net Profit
Gross profit indicates the amount remaining after subtracting COGS from total sales. It reflects the efficiency of your restaurant’s core operations.
Gross Profit = Total sales – COGS
Net profit is the bottom-line earnings after all expenses, including operating costs, taxes, and interest, have been deducted from total revenue. It represents the actual profitability of your restaurant.
Net Profit = Total revenue – Total expenses
A higher gross profit and a consistent net profit margin growth indicate effective cost management and pricing strategies, and a healthy and sustainable business.
Profit Margin
It measures the percentage of revenue that translates into profit, providing insight into overall financial efficiency.
Profit Margin = (Net profit / Total revenue) × 100
A higher profit margin indicates better cost control and pricing effectiveness.
Break-Even Point
The break-even point is the sales level at which total revenues equal total costs, resulting in neither profit nor loss. Knowing your break-even point helps in setting sales targets, financial planning, and pricing strategies.
Break-Even Point (in units) = Total fixed costs / (Selling price per unit – Variable cost per unit)
Customer-Centric Restaurant KPIs
Here’s a detailed overview of four customer-centric restaurant KPIs:
Customer Satisfaction Rate (CSAT)
This restaurant KPI measures how satisfied customers are with their dining experience.
CSAT = (Number of satisfied customers / Total number of customers surveyed) × 100
You can gather customer feedback by conducting post-dining surveys, from online reviews and ratings and social media feedback, or evaluating mystery shoppers.
A high CSAT indicates that customers are pleased with their experience, leading to repeat visits and positive word-of-mouth. Monitoring CSAT helps identify areas for improvement in service, food quality, and ambiance.
Customer Retention Rate (CRR)
This restaurant KPI measures the percentage of customers who return to your restaurant over a specific period.
CRR = [(Number of returning customers during a period – New customers acquired during the same period) / Number of customers at the start of the period] × 100
A high CRR signifies strong customer loyalty and satisfaction. Retaining existing customers is more cost-effective than acquiring new ones and contributes to steady revenue.
Average Spend per Customer (Average Check Size)
This restaurant key performance indicator measures the average amount each customer spends per visit.
Average check size = Total revenue / Number of customers
Understanding the average spend helps in pricing strategy, menu optimization, and identifying opportunities for upselling. An increase in this metric can lead to higher profitability.
Customer Complaints
This restaurant KPI tracks the number and nature of complaints received from customers. Customers can submit complaints via feedback forms and surveys, online reviews, social media comments, or direct communication. Monitoring complaints helps identify recurring issues and areas needing improvement. Addressing complaints promptly can enhance customer satisfaction and prevent negative reviews.
Marketing KPIs for a Restaurant
Here’s a breakdown of the most valuable restaurant KPIs you should track to evaluate and optimize your restaurant’s marketing efforts.
Online Bookings, Reviews, and Ratings
- Track the number of reservations made through your website or third-party platforms. It helps you identify high-performing channels.
- Customer reviews and ratings directly impact reputation and visibility. Monitor reviews and average ratings on platforms like Google, Yelp, etc., as well as volume, frequency of reviews, response time, and sentiment analysis.
- Encourage satisfied guests to leave feedback and respond promptly to reviews, both positive and negative.
Social Media Engagement
Your restaurant’s presence on social media platforms can significantly influence foot traffic and online orders. Track engagement metrics such as:
- Follower growth rate
- Likes, shares, and comments per post
- Post reach and impressions
- Click-through rate
Encourage customers to share their dining experiences online. User-generated content can significantly boost your restaurant’s visibility and credibility
Marketing and Advertising Costs
Monitor all marketing-related activities and expenses, including paid ads, influencer partnerships, email marketing campaigns and tools, loyalty program promotions, etc., to understand where your budget goes. Calculate the cost per acquisition (CPA). It’s the amount you spend to gain one customer. Prioritize campaigns that bring in the highest returns for the lowest spend.
Return on Investment (ROI)
ROI is the final metric to measure the effectiveness of your marketing strategy.
ROI = (Marketing revenue – Marketing costs) / Marketing costs × 100
You can track revenue generated through direct campaigns (promo codes, targeted ads), repeat visits influenced by loyalty programs, and upselling through email or SMS marketing. Monitor ROI per channel to allocate resources more effectively. Low ROI signals a need to adjust targeting, messaging, or channel strategy.
Improve Restaurant Operational Performance with GoAudits
Effectively tracking restaurant key performance indicators is essential to driving operational excellence. GoAudits restaurant inspection software is an all-in-one, intuitive, and user-friendly solution to help you streamline inspections, audits, food quality control checks, and compliance tracking. With GoAudits, you can monitor every aspect of your restaurant’s performance, from kitchen hygiene to service standards. Real-time visibility enables you to act quickly, maintain compliance, improve performance, and enhance customer experience.
- Access a library of professionally designed restaurant audit checklists, customize them to fit your restaurant’s unique requirements, or build your own with a simple drag-and-drop builder.
- Conduct thorough audits directly from your mobile device, even without an internet connection. Attach, annotate, and upload photos instantly for visual documentation. Add smart data, including timestamps, geolocation, and e-signatures for transparency.
- Generate comprehensive reports, which include assigned actions, photos, timestamps, etc., immediately after each inspection, customize them, and share them with relevant stakeholders.
- Assign corrective actions during inspection with defined priority and deadlines. Monitor open, in-progress, and completed tasks on a centralized dashboard.
- Set up rules for report sharing, task approvals, and email notifications to ensure no task is forgotten. View task statuses, overdue actions, and completion rates across all sites.
- Monitor trends in restaurant KPIs across locations, departments, and timeframes. Track audit scores, completion rates, and recurring issues, and view overall and sectional performance at a glance.
Free and Customizable Restaurant Checklists
GoAudits offers the following restaurant audit checklists. You can sign up for free and start using these checklists. Alternatively, you can digitize your restaurant SOPs into actionable, easily accessible checklists.
- Restaurant Inspection Checklist
- Restaurant Audit Checklist
- Restaurant Visit Report
- Restaurant Mystery Shopper Checklist
- Restaurant Kitchen Cleaning Checklist
- Opening and Closing Checklist for Restaurants
- Restaurant Cleaning Checklist Template
- OSHA Restaurant Inspection Checklist
How Can You Pick the Right Restaurant KPIs to Track?
Here’s how to identify and implement the most relevant restaurant key performance indicators:
- Begin by clearly defining your restaurant’s strategic objectives. Your restaurant KPIs should directly reflect your business goals. Ensuring that each KPI is Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) will facilitate effective monitoring and progress assessment.
- A comprehensive KPI framework should include all critical aspects of your restaurant’s operations, enabling you to identify strengths and pinpoint opportunities for improvement.
- Comparing your restaurant KPIs against industry standards provides context for your performance. Use benchmarking data to understand where your restaurant stands in relation to competitors. This can highlight areas where you excel and identify aspects needing attention.
- Focus on restaurant KPIs that offer clear insights and can drive immediate action. Avoid overcomplicating your analysis with excessive data; instead, concentrate on metrics that directly impact your restaurant’s performance and customer satisfaction.
- Regularly review and analyze your restaurant KPIs to ensure they remain aligned with your growing business goals. This allows you to respond to trends, address issues promptly, and capitalize on new opportunities. Incorporate feedback from staff and customers to refine your KPIs.
