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Sales per Labor Hour and Other Restaurant Metrics

Your restaurant’s success depends on your ability to run a business. Having access to your metrics can help you take an objective look at the ins and outs of your restaurant, giving you the opportunity to avoid losing out on profits and see potential future financial trouble. It’s easy to get wrapped up in the fun of creating amazing menu items and wonderful guest experiences, but it’s essential for the survival of your business to pay attention to your numbers. We’ll go over some of the sales metrics you should take a look at to prevent your restaurant from going under.

What are Restaurant Sales Metrics and What Do They Tell You About a Restaurant

Restaurant sales metrics are metrics used to examine the hard numbers associated with your revenue to determine your performance and overall health. With these metrics, you can optimize your profits and gain a greater understanding of your restaurant. Restaurant owners will often find themselves hemorrhaging profits when they don’t pay attention to these metrics as they can tell an important story about your finances. 

Important Restaurant Metrics for Analyzing Sales

Analyzing these sales metrics is essential to gather valuable insights into your business performance. By keeping a close eye on critical restaurant metrics like sales per labor hour, sales by category, and average check size, you can evaluate your establishment's financial health and identify growth opportunities. These important restaurant metrics offer a comprehensive view of sales performance, enabling you to make strategic decisions that maximize profitability and customer satisfaction.

Sales and Revenue Metrics

While this list doesn’t include all of the sales and revenue metrics out there, these are some of the most popular and useful.

  • Total sales.

Your total sales evaluate a restaurant's performance and is a crucial metric for its success. The total sales of a restaurant serve as an indicator of its profitability. By comparing the total sales against the point where you break even, one can determine if the restaurant is doing well or needs improvement. The restaurant will not be profitable if the total sales are below the break-even point. This is why it's essential to keep track of the exact amount of sales to accurately evaluate the restaurant's performance.

  • Sales per labor hour.

This metric provides insight into the average number of sales generated by your restaurant staff as a whole. Its purpose is to help evaluate staff productivity and determine if labor costs are yielding a satisfactory return on investment. The ideal sales per labor hour will vary based on the type of restaurant. High-end establishments may have lower productivity levels due to their premium service and higher labor costs while casual restaurants typically have higher productivity levels with lower labor costs. 

  • Average check size.

Your average check size can show you how much you can expect a guest to spend on average. This is a great way to help project how much your annual sales will be and how many customers you need to meet your profit goals. It’s normal for this number to fluctuate, but if you notice a steady decline in your average check size, it might be time to take a closer look at why that might be.

  • Sales by category.

Your sales by category can tell you a lot about menu items that sell and menu items that you’re losing money on. You can craft your menu to promote less popular items or 86 menu items altogether. If you try a new menu item, this is especially important to see if it’s viable. Another option you can use for this metric is calculating menu item sales against your ingredient spending. If you’re spending too much on specific ingredients, that can bring down your profitability and it might be worth looking into less expensive options or taking the item off your menu.

  • Turnover rate for tables.

Your turnover rate for tables is the average number of times tables are occupied during a specific time period. Looking at your table turnover rate can help you optimize your restaurant's capacity. When you notice a lower turnover rate, it might suggest that your tables are not being utilized to their fullest potential. Although having a high turnover rate is desirable, it's crucial to strike a balance between table turnover and customer service. If you notice an uptick in customer service complaints it could be because your staff is rushing through service. By keeping track of your restaurant's average table turnover rate, you can monitor performance and make informed decisions to enhance your operations.


How Provi Can Track Your Sales and Offer Even More Analysis

Provi’s beverage ordering and inventory tracking service can help you visualize how often you’re ordering product and how much the items on your menu cost. With all your reps in one place through Provi’s in-app messaging, you can stay organized and focus more on keeping your restaurant successful. If you’re interested in learning more about how Provi, make a free account today and get your first order done in as little as 5 minutes.

Ryan Philemon


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