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 wraps up our 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 http://www.kpilibrary.com. With those in mind, make up a list of KPIs that will be the most useful to you.
Today, we will look at some Marketing and Advertising indicators:
1) Marketing and Public Relations (PR) Costs: This is the total amount of money spent on these endeavors. It can be difficult to measure, but is important. One possible way to measure if your marketing is reaching your customers is to have something that the customer actually brings in with them, such as a discount coupon. By seeing how many customers used the coupon (and the total sales to those customers), you can gauge whether or not the cost of the coupon campaign was made up in sales.
2) Response Rates: Similar to the coupon example, this measures how many people respond to a particular campaign. This can be used effectively in social media, by seeing how many people “like” your page or mention something that you advertised in these mediums.
3) Sales Inquiry Conversion Rate: This is a measure of how many calls/requests for information turn into actual sales. If, for example, ten people call to ask if you host private parties at your restaurant, and three of these calls result in the parties actually being held at your restaurant, this is a SICR of 30%. You can use this information to find out why these people became customers – menu, service, ads, etc
4) Press Mentions: Pay attention to local media and see when you are mentioned. Track any changes to sales that coincide with these mentions. Find ways (such as partnering with a charity or hosting a special event) that may garner you increased mentions in the press.
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 • 2416 Sand Lake Road • Orlando, FL 32809 • 407-480-3409