MRM EXCLUSIVE: Changing KPIs for Restaurant Growth

2 Min Read By Rom Krupp

KPIs (key performance indicators) are important for restaurants regardless of their size or service type. A smart KPI is used to make informed and intelligent decisions that will lead to improved internal operations and more effective external marketing. But too many restaurants use KPIs that show up or down but no clear direction if that means good or bad. KPIs need to move from being math-based to behavior-based so restaurants can stay ahead of the competition.  

#1 KPI -- Per Person Average (PPA)Current KPI:  Typically restaurants take the sales amount divided by guest count and make decisions based on this data.

Challenge:  The value of a KPI in general is an indicator which has to have a consistent result reading so if it is up or down the interpretation is clearly good or bad. But the way PPAs are done now, the reading isn’t leading to improved outcomes.

Change KPI:  Instead of a straight formula, he PPA should be determined by splitting the number into indicators of…