Restaurant Manager Objectives
The success of a restaurant heavily relies on the efficiency of its manager, and therefore, measuring their performance is critical. Restaurant manager objectives are designed to track and measure the manager’s core job efficiencies. These KPIs include revenue per available seat hour, revenue per available square meter, and the reduction of canceled reservations. By tracking these KPIs, restaurant owners and managers can assess the manager’s performance and identify areas for improvement, such as optimizing seating arrangements or improving customer service. Ultimately, the use of restaurant KPIs helps ensure that the restaurant’s operations are efficient, profitable, and provide customers with a positive dining experience, leading to increased customer satisfaction and loyalty.
- Improve the revenue per available seat hour (RevPASH) – This KPI tracks and measures the restaurant manager’s ability to improve revenue per available seat hour (RevPASH). The higher the revenue generated per available seat hour, the greater the restaurant manager’s successes, and the greater the restaurant’s capacity to generate a profitable income.
- Improve the revenue per available square meter (RevPAM) – This KPI tracks and measures the revenue generated by the restaurant per available square meter (RevPAM). It is calculated by dividing the total sales by the total square meterage of the dining area. The higher this ratio, the greater the extent to which the restaurant manager is successful.
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- Improve the revenue per table – This KPI tracks and measures the revenue generated per table over time. The higher this metric, the greater the extent to which the restaurant manager is able to inspire the team to improve the revenue generated per table over time.
- Improve the amount of dining – This KPI tracks and measures the extent to which the restaurant manager is able to improve the amount of dining metric. This ratio monitored by calculating the average dining bill and how to increase the average customer spend. It speaks volumes about the restaurant customers and how much they spend.
- Improve (reduce) canceled reservations – Table reservations guarantee income per service. This KPI tracks and measures the restaurant manager’s ability to reduce the canceled reservations over time. The higher this metric, the greater the extent to which the manager can reduce the canceled reservations over time.
- Increase reserved tables – Reserved tables are the lifeblood of many restaurants. Restaurant managers must ensure that the number of reserved tables per service is increased over time. This KPI tracks and measures the manager’s ability to increase the number of reserved tables over time.
- Improve the positive feedback from guests – Positive feedback from guests translates into the successful implementation of the restaurant’s business model. This KPI tracks and measures the extent to which the restaurant manager is able to motivate the restaurant team to improve their positive customer feedback metrics.
- Improve (reduce) complaints per restaurant order – No matter how good the restaurant team is, there will always be complaints, and the aim is to reduce the number of complaints per restaurant order over time. This KPI measures the extent to which the restaurant manager can motivate the team to consistently reduce the number of complaints.
- Improve (reduce) the unavailability of menu items – Ordering a menu item only to be told it is unavailable results in a negative customer experience. This KPI tracks and measures the restaurant team’s ability to consistently reduce the unavailability of menu items over time to ensure that this scenario never occurs.
- Increase the number of new menu items – Increasing the number of new menu items meets the changing customer requirements and food trends. This KPI measures the restaurant manager’s ability to regularly increase the number of new items added to the menu. The higher this metric, the greater the manager’s ability to offer clients new menu items.
- Improve the front of house labor – The front of house labor is a KPI that expresses the percentage of workers to the total workforce tasked with managing the front of house activities. Too many front of house employees will negatively affect the rest of the restaurant’s operations. This KPI measures the front of house metric.
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Restaurant Team Objectives
A successful restaurant depends on the performance of its team, and therefore, measuring their operational efficiencies is crucial. The restaurant team objectives are designed to track and measure the team’s performance. These KPIs include improving the number of guests per table, the foodservice strike rate, the total number of guests served, and customer service time. By tracking these KPIs, restaurant owners and managers can assess the team’s performance and identify areas for improvement, such as optimizing table turnover or improving customer service. Ultimately, the use of KPIs helps ensure that the restaurant’s operations are efficient, profitable, and provide customers with a positive dining experience, leading to increased customer satisfaction and loyalty. With a high-performing team, a restaurant can maintain its success over time and grow its customer base.
- Improve the guests per table – Seating the maximum number of restaurant guests per service ensures a minimum income generated for every seating. This KPI tracks and measures the restaurant team’s ability to ensure that the maximum number of guests are seated at each table. The higher this metric, the higher the restaurant’s income.
- Improve the food service strike rate – The food service strike rate measures the number of times customers visit your restaurant and place a food order. This KPI tracks and measures the restaurant team’s ability to increase the food service strike rate. The higher this metric, the greater the team’s successes.
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- Improve the total number of guests served – The total number of guests served over time directly correlates with the income generated. This KPI tracks and measures the restaurant team’s ability to increase the number of guests served over time. The higher this metric, the greater the number of guests served.
- Improve customer service time – The customer service time is the time taken for the food and drinks to be served from the time the order was initially taken. This KPI tracks and measures the extent to which the restaurant team is able to reduce the customer service time.
- Improve the number of customers satisfied with the service time – The number of customers satisfied with the service time correlates directly with an increase in revenue generation metrics. This KPI tracks and measures the restaurant team’s ability to consistently increase the number of customers satisfied with the service time. The higher this metric, the greater the team’s successes.
- Increase the total tip value – A tip’s value is seen as a customer service measure and denotes positive customer feedback. This KPI tracks the total tip value over time. And it is calculated as the ratio of the total sales per service: The higher this metric, the more excellent the restaurant team’s customer service.
- Increase the number of tables served per waitron – This KPI tracks and measures the number of tables served per waitron. The higher this metric, the greater the extent to which the restaurant team is able to increase the number of tables served per waitron within the same time frame.
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Restaurant Objectives
The food industry is known for its dynamic and competitive nature, which makes it vital to track and measure restaurant-related objectives. Doing so ensures that your restaurant remains operational and profit-driven, despite the competition in the industry. By using KPIs, restaurant owners and managers can make data-driven decisions, improve operational efficiencies, and provide a positive customer experience, which can lead to increased profitability and customer loyalty over time.
- Improve the time per table turn – The time per table turn is the amount of time that guests typically remain seated at the table. Reducing the time per table turn while increasing customer satisfaction metrics increases the number of guests seated per service. This KPI tracks and measures the time per table turn over time.
- Increase the application of principles of workplace safety and sanitation – This KPI tracks and measures the application of principles of workplace safety and sanitation. The higher this metric, the greater the restaurant’s ability to apply the principles of workplace safety and sanitation.
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- Improve the application of the principles of menu planning – The application of the principles of menu planning is designed to help restaurants plan a successful menu that attracts guests, uses the best ingredients, and is cost-effective. This KPI tracks and measures the restaurant employees and management apply the principles of menu planning.
- Improve the application of the principles of the purchasing process – Applying the purchasing process principles increases allows for the purchase of the best quality ingredients at the optimal time, reducing wastage and facilitating the creation of the highest quality food, driving customer attraction and retention over time. This KPI measures the restaurant’s ability to apply these purchasing process principles.
- Improve the product quality uniformity – The product quality uniformity indicates the variance in food quality when measured over time. This KPI tracks and measures the extent to which the restaurant is able to ensure that the product quality uniformity remains continuously high over the restaurant’s lifecycle.
- Improve (reduce) the food loss – Apart from labor costs, food wastage is one of the highest expenses that a restaurant occurs. This KPI tracks and measures the extent to which the restaurant is able to reduce food loss and keep the wastage metrics down over time.
- Improve the food costs versus food sales – The food costs versus food sales indicator denotes the percentage of the cost of the raw materials covered by the sales figures. This KPI tracks and measures the proportion of the costs of your food supplies covered from the sales of food items prepared using those raw materials.
- Improve (reduce) the beverage loss – Beverage losses and wastage eats into the restaurant’s gross profit. It is critical to reduce the losses over time. This KPI tracks and measures the beverage loss and wastage metrics in relation to the total beverage cost to drive down the wastage.
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Restaurant – Business Profitability
- Gross profit margin – We endeavor to increase the gross profit margin by optimizing fixed expenses and maximizing revenue during each period.
- Net profit margin – We endeavor to increase the net profit margin by reducing overall expenses while maintaining or growing total revenue.
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- Prime cost – We endeavor to reduce the prime cost by effectively managing controllable costs such as labor and food expenses.
- Actual food cost or cost of goods sold (CoGS) – We endeavor to reduce the actual food cost (CoGS) by improving procurement, portion control, and waste management processes.
- Menu item profitability – We endeavor to improve menu item profitability by optimizing pricing strategies and controlling the costs associated with preparing specific menu items.
- Break-even point – We endeavor to reduce the time to reach the break-even point by increasing revenue and streamlining operational costs.
- Cash flow – We endeavor to improve cash flow by enhancing revenue streams and managing outgoing costs efficiently.
- Inventory turnover ratio – We endeavor to increase the inventory turnover ratio by improving inventory management and aligning stock levels with sales demand.
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Restaurant – Customers and Servers
- Average Table Occupancy – We endeavor to improve the average table occupancy by maximizing the utilization of available tables in the restaurant.
- Per-Person Average (PPA) – We endeavor to increase the per-person average (PPA) by enhancing server performance and optimizing guest spending.
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- Food cost percentage – We endeavor to reduce the food cost percentage by streamlining inventory costs and aligning them with total turnover.
- Food cost variance – We endeavor to reduce food cost variance by minimizing inventory waste due to pilferage and inefficient practices.
- Employee turnover percentage – We endeavor to reduce employee turnover percentage by fostering a positive work environment and enhancing employee retention strategies.
- Spend per Head – We endeavor to increase spend per head by encouraging higher customer expenditure through effective upselling and menu optimization.
- Labor Cost Ratio – We endeavor to increase spend per head by encouraging higher customer expenditure through effective upselling and menu optimization.
- Table Turnover Rate – We endeavor to improve the table turnover rate by decreasing table idle time and increasing the number of guests served within a given period.
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These restaurant KPIs form an integral part of ensuring that the restaurant team and management meet their core efficiencies. They provide critical reference points to monitor the restaurant’s month-on-month performance, ensuring consistency and reliability throughout the restaurant’s lifecycle, facilitating a consistent fine dining experience for all of its patrons.
The restaurant KPIs are divided into three result areas: The restaurant’s objectives, the restaurant manager’s goals, and the restaurant team’s objectives. These result areas are designed to track and measure the three critical areas of the restaurant’s role in providing a quality service to current and future guests.
Using restaurant manager and team objectives aim to ensure operational efficiency and consistency over time. High performing metrics are valued, translating into a practical restaurant business model and method and application thereof. Juxtapositionally, low performing metrics must be revisited to ensure that their performance improves over time.
