Retail Tech, Inc. - Point Of Sale System Solutions

POS Equipment

RMA Login
  • Who We Are
    • History
    • Our Team
    • Awards and Certifications
    • Career Opportunities
  • Solutions
    • POS Hardware Solutions
    • Refurbished POS Hardware
    • POS Parts
    • POS Integration and Staging
    • We Buy Used POS Equipment
    • POS Trade Ins / Upgrades
    • Asset Disposal
    • POS Repair Service & Maintenance
    • Deployment
    • Case Studies
  • Manufacturers
    • All Manufacturers
    • Toshiba
    • Epson
    • HP
    • Zebra
  • Latest in Tech
  • Contact Us

Evaluating Restaurant Performance Metrics

October 13, 2017

The restaurant industry is notoriously difficult. Long-term restaurant success and profitability can be hard to achieve, making it vital to be aware of the day-to-day performance of the business. To make that easier, PointofSale.com recently published an article highlighting seven key restaurant performance metrics, with advice on how to evaluate them. We’ll share those tips below.

For point of sale systems to help with restaurant efficiency, performance and reporting, check out the full Retail Tech catalog of new and refurbished PoS systems.

restaurant performance metrics

 

 

 

 

 

  1. Break-Even Point

This number – which is the amount that a restaurant must make in sales to earn back an investment – should be calculated first. Then, additional projections can be made based on that number. It can be used for the opening of a new restaurant or when a big purchase or improvement is made.

  1. Cost of Goods Sold

This refers to the cost required to create each of the items sold to customers. Because this is usually one of the largest expenses for restaurants, this will allow owners to identify ways to minimize these costs.

  1. Overhead Rate

This is a way to look at a restaurant’s fixed costs (rent, utilities, etc.), broken down to an hour-by-hour or day-by-day basis, allowing for a more incremental view of how much it costs to run the restaurant.

  1. Prime Cost

This is the sum of the cost of goods sold (detailed earlier here) and the total labor costs, including wages, benefits and any others. This is a good summary number of all of a restaurant’s controllable expenses, and shows how careful labor management could lower costs and increase profit.

  1. Food Cost Percentage

This is the difference between the cost of the ingredients in a specific menu item and that item’s selling price.

  1. Gross Profit

After accounting for the cost of the goods sold, this number shows the profit made by the restaurant, which represents the money available for paying expenses and for profit.

  1. Employee Turnover Rate

Because the restaurant industry has a high turnover rate, it’s important to track employee turnover – the percentage of employees that quit or are fired – for maximum operational efficiency.

Experts recommend that owners calculate these restaurant performance metrics regularly – monthly or weekly – and identify trends in order to identify and fix problem areas and improve performance and profits.

Retail Tech is proud to be a partner of the restaurant industry. We carry a wide variety of new and refurbished point of sale (PoS) systems and parts. We offer key services, including installation and staging, and PoS printer repairs. Contact our point of sale systems specialists for help finding the perfect solution for your business.

Related News

6 POS Reports That Make Restaurant Management Easier

Running a restaurant is difficult in the best of times. After the past couple of years, restaurant owners and managers are under more pressure than ever. But your point of sale …

Does Your Restaurant Need Tableside Ordering?

As the COVID pandemic persists, restaurants are searching for ways to make the dining experience safer, both for customers and staff. Tableside ordering could eliminate multiple points …

How to Retain Restaurant Customers Using Point of Sale

Running a profitable restaurant is challenging in the best of times. Today, restaurants are struggling like never before. Amidst these unprecedented challenges, owners and …

Stay In Touch

  • This field is for validation purposes and should be left unchanged.

logo
Facebook LinkedIn Instagram YouTube Twitter
8600 Shelby Court, Suite 200 Chanhassen, MN 55317
Toll Free: 1.877.580.9687
Phone: 952.380.0493
Copyright © 2022 Retail Tech, Inc | Minneapolis Web Design by BizzyWeb | Log in