Labor as a % of Revenue
With some restaurants reporting record levels of hourly staff turnover, it’s clear that loyal employees are a scarce commodity. In 2020, U.S. unemployment is at 3.5%, and minimum wages higher than the federally required $7.25 per hour have been legislated in 30 states. For restaurants, quality workers are more difficult to find and retain and are more expensive. Add in the high cost of turnover, and it’s clear why restaurants must reduce costs across the employee lifecycle. Read more.
- > 36%
- < 24%
"Americans spend just over half — 51% — of their food dollars in restaurants, doubling the 1955 spend.” "
Operational efficiency is key to reduce prime cost. What are some ways to be more economical?
- > 75%
- < 54%
Net Promoter Score
Your Net Promoter Score comes down to a simple question: “How likely are you to recommend this restaurant to a friend or colleague?” By surveying guests and tracking NPS scores on a monthly and rolling basis you can spot problems quickly while tracking growth and improvements over time. Using NPS versus tracking social media, review sites or other sources of guest feedback allows for a standardized, industry-recognized metric.
Cost of Goods
Labor as a % of
Free Cash Flow
Your business may just be beginning to track this metric, perform this business function or identified this as a problem. Improved execution in this area should be a high priority.
Your business is competitive in this area, but there’s still room for advancement. Consider investments to improve related operations to achieve better results.
Best in Class
Your performance in this area is considered best in class and is superior to the average company in your sector. You’ve laid a solid foundation in this business function, and the next step is optimization.
You’re achieving the optimal results for this metric. Your business processes in this area are highly efficient and stand out against competitors. Keep investing in this area to maintain these results.