Restaurant Key Performance Indicators, Part 1

One Fat Frog Restaurant Equipment knows that the old adage “you can’t manage what you can’t measure” still holds true today. Whether you are just opening a restaurant start-up or you are an established business, you need to be able to quantify key elements of your business, so that you can measure the relative success of each component. That way you can successfully accent the positives and reduce the negatives – the key to being a successful manager.

With that in mind, One Fat Frog is beginning a series on Key Performance Indicators (KPIs) in the food service industry. KPIs are quantifiable measurements that reflect the factors that you have deemed crucial to the success of your business. In order to accurately follow them, you will need to collect data (measurements), determine how they’ll be described as a standard (metric), and compare them to a benchmark in order to evaluate your progress.

KPIs are different from business to business, and will depend on many factors. Some common ones for the restaurant/bar industry will be looked at here. For a nearly exhaustive list, check out the KPI Library at With those in mind, make up a list of KPIs that will be the most useful to you.

Today, we will look at some Sales and Kitchen indicators, as they generally affect the bottom line most directly.

1) Food cost percentage: Your food costs should be no more than 35% of your total food sales. If you are a franchise, it may be much lower due to the purchasing power and cost controls that franchises often offer. If your food costs total more than 35% of your total food sales, however, it may be time to start looking at ways to reduce those costs.

2) Weekly sales: The most important thing to look at in this number is the change from week to week. This is a very basic by which to measure if your business is expanding or contracting.

3) Sales Per Head: This is also a very important metric, and should be carefully maintained. To reach this number, divide the total sales by the number of customers. In order to do this, you must keep a careful count of your customers either through your point-of-sale system or through your staff. You should calculate this KPI at different shifts and different times of the year, to look for trends that may relate to special discount offers, seasonal variance, or other factors.

One Fat Frog Restaurant Equipment wants all of our customers to succeed. That is why we offer such amazing benefits with all of our used restaurant equipment – free delivery, free custom paint jobs, free cutting boards with all used prep tables, free gas conversion, in-house financing, 30 day warranty on parts and labor – the list goes on and on. Nobody in the area even comes close to our selection, prices, and – above all – customer service.

If you are even considering opening up a bar, restaurant, food truck, or anything else in the food service universe, call or come by the store today. Let us help you get your dreams in motion.

One Fat Frog Restaurant Equipment

One Fat Frog • 2416 Sand Lake Road • Orlando, FL 32809 • 407-480-3409

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