If there’s one universal truth in the restaurant business, it’s this: You can’t improve what you don’t measure. Whether you’re running a bustling brunch spot or a fine-dining oasis, your Key Performance Indicators (KPIs) are the lifeblood of your operation. These aren’t just numbers, they’re the story of your business told through data. The real challenge? Turning that story into a bestseller.

The What and Why of KPIs

Key Performance Indicators are quantifiable measures that reflect the health and performance of your restaurant. They’re not just numbers for the finance team, they’re tools that every leader, manager, and team member should understand and act on.

Here’s the catch: not all KPIs are created equal. Tracking the wrong data, or overwhelming your team with too much information, can be just as damaging as ignoring metrics altogether. That’s why it’s essential to focus on KPIs that truly matter to your restaurant’s success.

Let’s break this into three actionable categories:

1. Brand-Level KPIs: These are the overarching metrics that define the health of your business. Think revenue growth, labor costs, and customer retention. They guide your big-picture strategies and help you stay aligned with your brand’s vision.

2. Direct Supervisor KPIs: Area managers or district supervisors rely on KPIs like operational consistency, customer satisfaction scores, and average ticket size to identify trends and address gaps.

3. Store-Level KPIs: Day-to-day performance lives here. Metrics like food cost percentage, speed of service, and daily sales reflect the execution of your strategies.

Turning Numbers Into Action

Knowing your KPIs is just the start, what you do with them matters most. Here are five strategies to integrate KPIs into your operation seamlessly:

1. Make KPIs Visible: A simple scoreboard can turn abstract numbers into tangible goals. Whether it’s a leaderboard in the back office or a daily update in team meetings, visibility is key. Gamify progress by celebrating wins, like awarding the “Fastest Ticket Times” or the “Best Food Cost Control” for the week.

2. Train From Day One: Orientation is the perfect time to introduce new hires to KPIs. Show them how their role contributes to overall success. For example, a prep cook should know that proper portioning reduces food costs, while a server should understand how upselling impacts average ticket size.

3. Engage Through One-on-Ones: KPIs are perfect conversation starters in one-on-one meetings. Focus on specific contributions, celebrate successes, and collaborate on areas of improvement. Remember, these meetings are about alignment, not criticism. Pairing the discussion with coffee or dessert doesn’t hurt, either.

4. Focus on Trends, Not Perfection: KPIs provide insight into trends over time. Don’t panic over one bad week, focus on consistent improvement. For instance, if food costs spike, identify the root cause: Is it portioning, waste, or supplier pricing?

5. Keep It Simple: Too many metrics can overwhelm your team. Stick to the KPIs that matter most for your operation and make sure everyone understands their purpose.

Ready to Master Your Metrics?

Mastering KPIs isn’t about turning your team into accountants; it’s about aligning everyone toward shared goals. When done right, tracking and acting on KPIs can be the difference between a good restaurant and a great one.

Source: Jason E. Brooks, FSR