Restaurant Management KPIs

Restaurant Management Key Performance Indicators

Restaurant Management KPIs

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The restaurant industry is probably one of the most competitive industry out there. Maintaining the food & service quality and making a profit in the restaurant business is harder than staring the business.

You should have a transparent relationship with your business. This is why now a day’s restaurant managers are adapting the KPIs to manage their restaurant business.

KPIs or Key performance indicators are metrics that help you to find out if your company is on the right track.

When you apply KPIs in your business, you get a complete picture of your business. However, finding the proper KPIs can be a challenge.

There are so many KPIs to choose from that sometimes it becomes hard to understand which KPIs you should use for your restaurant. To help you find the suitable KPIs for your restaurant, after thorough research, we have come up with these KPIs.

1. Kitchen Management

Kitchen management is one of an essential part of the restaurant. A functional kitchen helps to produce foods that meet the demand of their customers and make a profit. You do not have to sell expensive dishes to make a profit.

Reducing wastage and coming up with an excellent menu is an easy and effective way to earn money.

Wastage of food and beverage may seem like a small thing. However, if it is a regular thing, you should be concerned about it. You cannot serve stale food to your customers. Making food costs needs raw materials, effort, time, and money. Besides, it decreases the amount of profit by increasing the cost of goods sold.

Sometimes it takes a while for customers to decide what they want to eat. If after determining what they want to order from the menu they find out the item is not available, it can be very disappointing for them.

Therefore, a restaurant must create a menu that has only the items they can serve and satisfy the customer’s demand.

2. Sales, Marketing, and Administration

Even if a restaurant makes delicious foods, it is not enough to sustain in the competitive market. Cash flow, working hour of the employees, marketing cost these things can play an essential role in your business. Spending money on marketing will not help you if you do not reach your potential customers.

The loyalty program can be an excellent example of cost-free marketing. Your loyal customers are the one that helped you grow all this time, so you should give them extra attention and care. It will attract new customers and keep your old customers satisfied.

If your restaurant is often reserved, it means your restaurant is popular among the customers. However, cancelled reservation can affect your potential revenue.

3. Customer’s Experience

Word of mouth is undoubtedly the most useful weapon for restaurateurs. So keeping your every customer happy is essential.

Making food needs time, but if your chef is taking too long to serve food, the customers may not give a useful review of your business. Serving wrong food can also disappoint the customer.


I hope these easy to apply, KPIs will help you increase your revenue, and make it easy for you to run the restaurant smoothly.


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