In the food truck business, just like in any other business, you need to measure different aspects of your business to measure what’s improving and what isn’t. Checking the numbers accurately and regularly will tell you what’s working and will remove all the pesky guesswork from your operation. Finding problems quickly and taking corrective action swiftly will help you avoid any losses in profit. And when you identify the aspects that are working, you can enhance and maintain that area for greater success.
While evaluating your food truck, you’ll collect data and see how it stacks up to a benchmark in order to evaluate your food truck’s progress. This data and these tools are normally referred to as “key performance indicators” or KIPs.
KPIs are quantifiable measurements that display the aspects of your food truck business that you’ve deemed crucial to success. The aspects differ from food truck to food truck. For instance, a new food truck owner may document which of his menu offerings is the highest seller, until he gets some repeat customers there isn’t much to document. On the other hand, a long-time food truck owner can measure aspects like the amount of income return customers are bringing in.
Here’s a brief look at some highly useful KPIs, courtesy of One Fat Frog Restaurant Equipment:
• Food Cost Percentage
• Weekly Sales
• Sales Per Head
• Inventory Value
• Best and Worst Selling Items
• Total Labor Cost
• Labor Hours
• Marketing and Public Relations (PR) Costs
• Response Rates
• Sales Inquiry Conversion Rate
• Press Mentions
Once you’ve selected your KPIs, you must have a way to accurately define and measure them. KPIs are also a great way to express to your staff members what’s important in the business and what needs to be done to reach certain goals. Making employees aware of what they need to work on will effectively motivate them to make improvements.
Consider posting individual and team results where your employees can see them. This will also help motivate them and clearly display areas that need to be improved.
After you have measured and defined your KPIs, review and use the results to help lead you to making right decisions for your food truck business. Accurately measuring your KPIs should make it a cinch to develop a strategy to improving your food truck business. Once you make any necessary changes, use the same KPIs to examine whether they are working or not. When improvements are identified, be sure to share the results with the rest of your crew and be sure to reward any member so the food truck crew who helped bring them about.
One Fat Frog • 2416 Sand Lake Road • Orlando, FL 32809 • 407-480-3409