5 most common KPIs to track in your restaurant

Owning a restaurant means keeping track of your Key Performance Indicators (KPIs). A KPI is a data point that you measure inside your restaurant that will give insight into how effective your restaurant is running. This means that knowing what your KPIs are very important for the success of your restaurant. Knowing that KPIs are important but the important thing to remember is to track the KPIs that are key to knowing how well your restaurant is running.

Here’s some of the most efficient KPIs that successful restaurants follow:


Cost of goods sold(COGS):

Cost of goods sold (COGS) is the direct cost attributable to the production of the goods sold in a company. These costs of sales are an expense of the restaurant and they reduce the profit the company makes on selling the products.

If you track only one thing in your kitchen, make it this one. The cost of goods sold(COGS) is likely the biggest expense for any restaurant; knowing where you can reduce the costs is a key factor in increasing profitability.

Sales Per Labour Hour:

It is often said that the most perishable resource that any restaurant has is its labour. It cannot be carried over to the next day, unlike an unsold food item. The importance of effectively using every hour scheduled and worked cannot be overstated. The productivity of your staff, whether that’s on the restaurant floor or in the kitchens has a huge impact on the success of the business.

Production time per dish:

Knowing how long it takes to produce each dish is key, as it can help you determine the value of each single dish based on turnaround time and expectations. Dishes to consider would be popular items, dishes with low sales volume and promotional items. If a popular dish takes too long to prepare, it will negatively impact the customers experience as well as your kitchen’s efficacy. And if items that are quick to produce are rarely ordered, consider swapping them out for more popular items and giving the kitchen more time to prepare the items customers want, faster.

Average Revenue Per Customer:

Once you’ve mastered the art of pulling customers in, you can begin looking at how successfully you’re converting that into revenue. It’s no use having a restaurant that attracts a lot of customers if you’re not actually making a profit.Look at how many customers are dining at your restaurant and how much overall revenue you’re making from them. Aim for a high figure if your headcount is low or if you’re targeting a niche audience. The average industry turnover split is around 66 percent for meals, 27 percent for alcoholic drinks and four percent for non-alcoholic drinks.

Food waste per food purchased:

Food waste is a huge concern for restaurateurs worldwide. Monitoring food waste enables you to improve your demand forecasting, forces you to reconsider how and where you procure your food, and leads to better management of your stored food stock. It can also help you determine if there are better methods to prepare your food, and if you need to reconsider your portion sizes or serving methods.


These are 5 KPIs that can help you learn more about your restaurant and how you may better run it more effectively. At Sabor, we want to be able to give you the information you need to run your restaurant efficient and profitable. If you have any questions about running your restaurant please reach out.



Sabor is a windows restaurant point of sale that helps restaurants increase sales through our easy to use POS and marketing services.

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