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5 KPIs essential for controlling a restaurant


Although they are known by its acronym in English (KPI) actually it is Key performance indicators, a tool capable of providing real-time data to various businesses in order that they know whether they are achieving the objectives set.

In recent years, thousands of companies worldwide have begun working with certain technological elements that They provide insight into their economic situation and its image among customers taking into account the goals previously set and the money they have already invested.

Now you no longer need to wait for the results offered by the annual balance to determine the success or failure of a business while financial health of the same It can be seen instantly thanks to the Key Performance Indicators, measuring the parameters chosen by the employer.

Key performance indicators (KPI) in the restaurants

While it is true, aunque los Key Performance Indicators noted for contributing to the optimization of most of the projects are launched, It does not have the same utility in all. The hospitality industry, meanwhile, is one that more and better use of such tools; while one of every two owners and restaurant managers highlights how important it is for the evaluation of their establishments.

And is that, in this sense, KPIs provide understandable reports on business performance which in turn allow you to keep tabs on the work done to fix bugs and improve performance.

A landlord can measure everything it deems appropriate and necessary, although he must know that some aspects will be easier to quantify than others: money earned, the influx of diners in a day or the number of actions taken -for a few examples- are simple indicators to know; however the quality in service delivery, customer perception, the relationship with the same or organizational culture are difficult tasks of counting.

5 aspects to be evaluated by key performance indicators

Los Key Performance Indicators, as we have seen, a restaurant help increase the profit margin and put your business on track. A hopeful way that seems that many are taking up both inside and outside the borders of our country.

In fact, there is no reason to be optimistic about the Spanish hotel industry is concerned because A recent study reveals that every citizen last year spent an average of 62,4 euros per month in bars and restaurants, a figure that doubles the investment in health (26,3 euros). In any case, previous establishments must remain vigilant regarding profits and for that it is advisable to use a KPI that include the following variables:

1.Cash flow

The restaurant owner must be aware of the inflows and outflows of money to determine the viability of your project; the positive or negative result- It is what is known as underflow, although it is also called cash flow or cash flow.

Revenues overcome the expenses to take the salary of employees and invoices from suppliers and to achieve management is essential for kpi. Why? Why This system provides detailed data that can predict what will happen in coming months and develop appropriate strategies to advance economic reality.

Income (grants, sales…) – Expenses (wages, taxes, services, raw Materials… ) = Flow Background

2. Cost of raw materials

This is the expenditure which has to face the restaurant to prepare food and drink which later offers diners. Control these costs is simple; the first thing you should do is forming an initial inventory where the record of all available inputs and their costs then purchase products that are necessary and attach, Of course, all invoices. Once the amount of purchases plus opening inventory subtracted what has been in store. Definitely, would:

Initial inventory + inventory purchased – ending inventory cost = food

3. Production costs

Production costs are those They generated during the process that transforms raw materials into finished products. In other words, what happens is that The initial price of a product fresh from the warehouse is increased markedly bill paying customer as a result of a series of unavoidable fixed costs: Cook, hand work, waiter…-, maintenance -rent, heating, air conditioner, light, Water…-, -Chairs furniture, tables, crockery…-, -kitchen appliances, dishwasher… Would be as follows:

Cost of raw materials + Work = Production Cost

4. RevPASH

This word, unknown to many, It comes from the acronym for the English expression Revenue Per Available Seat Hour and whose meaning would be something like food sales achieved over a period of time between the seats available. It is used to know what the time slots more or less influx of diners and, in consecuense, take steps: restructure staff, promote actions to attract new customers, etc. In addition calculated day of the week in which outsells, which does not mean that the benefit is necessarily superior.

5. Customer satisfaction

Any business needs customers to survive and, if they are faithful, best. So much so that experts agree hospitality measuring the strength of a restaurant for the loyalty of its guests and argue that the above four points are meaningless if the experience of these is in a negative time: long waiting times or lack of attention by staff may be sufficient reason not to return to a local.

How to get, so, an acceptable rate of retention? Offering superb service, including new things in the letter, organizing events, launching promotions, etc.

These They are just some of the essential metrics to analyze the health of our restaurant, but there are many more: total labor costs, the response rate of advertising and communication channels with the customer are only some of them. According to Sonia Casado, Accenture, “everything that happens in a company is relevant, and these technologies and techniques will help generate more business, providing a decision based on mathematics and not on intuition”. And you, what do you think?

About the Author

He graduated in journalism from the University of Valladolid although Fabero (Lion). Working for many years in the hospitality sector. Futura expert in food journalism and everything related to restaurants, a world that fascinates. His other passions: rock and sports.



  1. Pingback: Tools for restaurant – smilingvictor

  2. KPI's are also useful for many other things. I have a feeling that has only been written about the most basic and essential use without delving into use focused on improving the customer experience and overall performance

    • Jose Berenguer on

      Alberto Hello and thank you for your comment. We noted as an idea to go deeper in future articles that talk about the KPI's from the point of view of improving the customer experience and overall performance, as you point. a greeting.

  3. Initial inventory + Inventory purchased - Final Inventory = Cost of food honestly, NO.

    I think you should change this part because it implies a warehouse stocks, instead of COST – elaboration of the dishes. If the confusion.

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