How Does Restaurant Analytics Impact Your Restaurant?
In the restaurant sector, terms like “analytics,” “metrics,” and “reporting” aren’t generally associated with enthusiasm.
Even if you have the appropriate tools, diving into sales, menu, and labor data may be overwhelming – not to mention incredibly tough if you don’t.
To succeed, restaurateurs must be able to respond to queries such as:
- How can I make changes to my menu?
- What is the greatest time of day for my sales?
- Which of my restaurant locations generates the greatest revenue?
Let’s look at why these data elements are so important for restaurant management and what you can achieve with smart use of your restaurant analytics platform.
Restaurant Analytics – Why Are They Important?
What does it imply when 78 percent of restaurateurs review their company metrics every day?
First and foremost, we must distinguish between restaurant reporting and restaurant analytics.
Restaurant reporting entails looking at your data for a limited amount of time. Sales and earnings might be compared between this week and last week, or yesterday and today, using reporting.
In other words, it’s just a data dump of the day’s events, with little thought given to what insights may be gained.
Restaurant analytics takes it a step further, forcing you to ask questions such as “Why?” “So what?” and “What does this mean?” Multiple kinds of data are frequently used in restaurant analytics to answer deeper questions about your business’s performance. Look at your restaurant analytics to find out why a specific day of the week or hour of the day – in general – boosts earnings.
From here, you may gain insight on how to enhance the overall operations of your business.
Now that we’ve established that distinction, let’s look at some of the questions that restaurant analytics may help you address.
Identify Hot Selling Items
Let’s take a moment to discuss restaurant inventories.
Looking at how quickly your inventory is depleted isn’t always the best approach to figure out which food item is the most popular. Theft, trash, and leakage may all have an influence on these figures, so it’s not always a one-to-one match.
With restaurant analytics, you can see which sales categories, such as pizzas, beverages, and lunch combo deals, are the most popular, as well as profit margins and total income.
This data may be used to create catering menus, change pricing points, and engage with guests by serving the foods they enjoy the most.
Find The Best Days For Restaurant Sales
Should we be open on Mondays? It’s an age-old dilemma for restaurateurs. Friday appears to be our busiest day, but is it?
Restaurant analytics can show you not only how busy you are on any one day, but also how each weekday compares to others on average.
To put it another way, you can look at how occupied you are on any given Wednesday to create a normal inventory order and staff schedule, but on the Wednesday before a major holiday, you could discover you need to replenish your kegs.
Find The Loopholes In Your Menu & Fix Them
The ability to track special requests on the POS system over time is one element of restaurant analytics.
Owners may monitor how frequently servers utilize modifiers such as “additional pickles” or “well done.” When you get a lot of these unique requests, it’s time to urge your chefs to leave the meat on the grill a little longer and stop skimping on the garnishes. When they take too long, it might indicate that the architecture of your restaurant’s POS system is impeding server efficiency.
These adjustments clearly have an influence on your bottom line, so utilize the information to design your menu and modify prices accordingly.
Find The Top-Performing Restaurant Locations
Restaurant analytics can provide owners with a multi-location summary report that shows how each store has performed year to date. Determine whether sites may require more staff during peak hours or may require hours of operation changes to increase profitability.
On a micro level, a cross-location comparison can be used to compare one place to another.
Knowing which locations are the most profitable, the least profitable, and everything in between may help you quickly assess the data and take action.
Reward The Top-performing Servers
Is that “All-Star” waiter really all talk and no action, or is he or she, your restaurant’s hidden shining star?
Managers can monitor how effective their servers are at upselling particular menu items using restaurant analytics from a data-rich restaurant management platform.
Start a competition based on these data factors to inspire staff and boost restaurant profitability. Employee gamification can boost productivity and morale. Assign waiters the task of selling a certain item (wine, dessert, the latest app, etc.) in return for a minor incentive, such as an extra vacation day or a gift card.
Use the analytics feature on your cloud-based POS system to acquire the most precise statistics on a competition like this.
Sales Forecasting For The Next Month
Due to considerations such as seasonality and business development, restaurant sales forecasting can be challenging. Accurate sales forecasting, on the other hand, maybe quite beneficial, particularly when it comes to scheduling and food orders.
Look at your revenue to see what the percent increase in revenue from one month to another has occurred over time.
For example, you could discover that between June and September of the previous two years, your sales rose by 4%. You may expect sales to follow a similar pattern, reflecting your food supply ordering and staffing schedule.
Staff Scheduling With Accuracy
The busiest days at a restaurant are shown in graphs throughout time and for certain seasons.
You can utilize this information to more precisely plan out your timetable and avoid the drawbacks of having constant staff coverage. Otherwise, you risk being overstaffed or understaffed, both of which result in a loss of profit and efficiency. Make the best forecasts for your schedule based on your past data.
Opportunity to churn more profit
On weekends or during slower periods of the day, restaurant events are a great way to generate extra money. When huge groups seek to rent your space, you’ll need to know how much money you’re possibly losing and whether the lease’s cost will surpass that revenue.
Leasing out space isn’t cost-effective otherwise.
Restaurant analytics can show you which hours of operation generate the most income and profit. For example, if your typical income for a three-hour time window is $850 and you can lease the space for $1,350, you may choose to make your restaurant space available for leasing or for larger events at certain times.
Manage Food Wastage
According to various estimates, a typical restaurant’s waste loss ranges from 5 to 10%. You may minimize loss by 5-10% and lower food prices by 5-15% using insights gleaned from wastage analytics, resulting in a higher bottom line. You can optimize your menu, manage your inventory, and forecast the demand for the food item(s) to lower food wastage.
Prep-Time – Efficiency
It takes about 2 mins each side to make a steak that is rare & 3 minutes for it to be medium-rare. What if it takes 2.5 minutes and 3.5 minutes? How can you possibly identify this problem?
Through restaurant analytics of course. You’ll identify the time it takes your kitchen to cook food and which particular food items are taking more time to cook. Deep dive into the problem, find the solution and save thousands of dollars by driving down prep times and serving more customers.
Customer Surveys & Refunds
Sometimes customers may not like your food or the quality of service. Over time, this will impact the loyalty of your customers and they will go to your competition. Some customers may even ask for a refund.
The only way to avoid that is to conduct customer surveys on a regular basis and track the number of refunds that occur weekly, monthly, and yearly.
You can do this through Innowi’s restaurant POS system. Track customer refunds cater to the feedback that comes from the customer surveys and gets your kitchen in order.
Unleash The Power Of Innowi’s Restaurant Analytics
While data mining may seem overwhelming, understanding how to manage your business’s figures is essential for your operational and financial literacy as a restaurant owner. Innowi’s restaurant analytics will help you gain more profit and you’ll experience linear growth even during this pandemic.
We’re offering a risk-free trial of all our restaurant POS hardware and software. Contact our sales team to get this offer.