The 5 Must-Track KPIs for Every Restaurant Owner

Running a successful restaurant requires a blend of gastronomical passion and sharp business acumen. One of the ways to keep your finger on the pulse of your restaurant’s health is by monitoring key performance indicators or KPIs. These are metrics that provide actionable insights into different aspects of your business. While various factors can influence your restaurant’s operations, here are the top five KPIs every restaurateur should keep an eye on:

1. Average Sales Per Cover (or Per Guest)

  • What It Measures: The average amount each guest spends during their visit.
  • Formula: Total Sales ÷ Total Number of Guests
  • Why It’s Important: This metric sheds light on your menu pricing strategy and customer purchasing habits. Witnessing a decline? Time to rethink your promotions or menu items.

2. Table Turnover Rate

  • What It Measures: The frequency with which tables are occupied and vacated.
  • Formula: Total Guests ÷ Total Number of Tables
  • Why It’s Important: A high turnover suggests good demand and efficient service. On the flip side, it could indicate that guests feel rushed. A low rate? Your guests might be enjoying their time, or there could be service inefficiencies.

3. Cost of Goods Sold (COGS)

  • What It Measures: The direct costs tied to creating the dishes and drinks you serve.
  • Formula: (Beginning Inventory + Purchases) – Ending Inventory
  • Why It’s Important: A critical metric for understanding profit margins. An unexpectedly high COGS can be a red flag for issues like waste, theft, or even supplier challenges.

4. Labor Cost Percentage

  • What It Measures: The proportion of your sales that goes towards labor costs.
  • Formula: Total Labor Cost ÷ Total Sales
  • Why It’s Important: Labor often eats up a significant chunk of a restaurant’s expenses. This KPI helps you assess your staffing levels against your sales, ensuring you’re neither overstaffed nor understaffed.

5. Net Profit Margin

  • What It Measures: A snapshot of your restaurant’s financial health.
  • Formula: (Total Revenue – Total Expenses) ÷ Total Revenue
  • Why It’s Important: This metric provides a clear picture of how much of your earnings remain after covering all costs. A high margin is always a good sign, but a low one suggests there might be underlying issues to address.

In Conclusion: While each KPI offers valuable insights, they should always be considered in tandem and in context. No single KPI can give a comprehensive overview, but together, they paint a vivid picture of where your restaurant stands and where it could head. So, roll up your sleeves, dive into these metrics, and steer your restaurant towards success!

Choosing the Perfect POS System for Your Restaurant: A Comprehensive Guide


Are you a restaurant owner on the hunt for the ideal Point of Sale (POS) system to supercharge your operations? Look no further! In this comprehensive guide, we’ll delve into the key features you should consider when choosing a POS system, while shedding light on why a locally owned and operated provider might be the better choice over the most popular option. Let’s dish out the details!

  1. Know Your Style and Menu

When it comes to selecting the right POS system, it’s crucial to match your restaurant’s style and menu. Whether you’re a trendy bistro with a diverse menu or a cozy café specializing in comfort food, finding a POS system that complements your unique offerings is the recipe for success.

  1. User-Friendly and Intuitive Interface

A user-friendly POS system is like a well-seasoned pan – it makes cooking (and in this case, transactions) a breeze! Look for an intuitive interface that simplifies order taking and payment processing, allowing your staff to focus on what matters most – delivering delightful dining experiences.

  1. Flexibility for Diverse Ordering Options

In the ever-evolving restaurant landscape, flexibility is the secret ingredient to success. Ensure your chosen POS system accommodates various ordering options such as dine-in, take-out, delivery, and catering. Adaptability is the key to satisfying even the pickiest palates.

  1. The Magic of Data – Reports and Analytics

Just like a skilled chef relies on precise measurements, your restaurant needs data-driven insights. Choose a POS system that serves up comprehensive reports and analytics, enabling you to make informed decisions, track performance, and optimize your business for growth.

  1. Mix and Match with Seamless Integrations

No dish is complete without the perfect side dishes. Similarly, a well-rounded POS system should integrate seamlessly with other tools, like payment processors, loyalty programs, and inventory management systems. A harmonious blend of integrations enhances efficiency and streamlines operations.

  1. The Unique Advantages of Going Local

While the popular choices might grab attention, don’t underestimate the charm of a locally owned and operated POS provider. By supporting local businesses, you gain personalized attention, tailored solutions, and faster, more attentive customer support. It’s like having a trusted kitchen buddy who understands your restaurant’s needs inside out!


Choosing the perfect POS system is akin to crafting a masterpiece in the kitchen – it requires careful consideration, experimentation, and the perfect blend of ingredients. Take the time to explore various options, and remember that a locally owned and operated provider can offer the secret sauce that sets your restaurant apart.

With the right POS system in place, your restaurant will thrive, delivering unforgettable dining experiences to satisfied customers. So, embark on this culinary adventure, armed with the knowledge to find the perfect POS system that elevates your restaurant to new heights. Bon appétit and happy POS hunting!

Outbound Links:

  1. National Restaurant Association: Stay updated with industry trends and insights from the leading association for the restaurant industry.
  2. Bar Business Magazine: Get valuable tips and advice for bar owners and operators in this industry-focused magazine.

Internal Links:

  1. NexteraPOS: Check out NexteraPOS for cutting-edge POS solutions tailored to the restaurant and bar industry.