Restaurant benchmarks are vital for making decisions about the operations and marketing of your restaurant. Benchmarking refers to a process of evaluating a company’s products, services, operations against an industry standard. In the restaurant industry, there are various benchmarks published on a regular basis which allow you compare your measurements and results to those of other restaurants in the industry.
Once you analyze your measurements against the benchmarks, you can begin to see the areas in which your restaurant could improve, as well as where you are succeeding. You can then apply more focus and resources on things requiring improvement. Likewise, you can work to cement the successful areas to make them even better.
Restaurants generate a lot of different numbers. There are so many restaurant statistics in which to compare your business such as restaurant ratios that it may seem slightly intimidating to those who are new to the idea of restaurant metrics. However, the important thing to remember is that these restaurant metrics give you the ability to benchmark your locations performance and identify profitable or areas for improvement quickly. So, monitoring your restaurants trends become critical to operating a successful multi-unit operation. This is why benchmarking is an important aspect of any successful operational or marketing strategy.
Should You Utilize Restaurant Benchmarks
Restaurant benchmarks like the ones found here can help operators determine where to look first and what to expect. Again, there are exceptions, but industry benchmarks have proven to be consistently reliable. They can come in handy when growing or assessing the performance and financial feasibility of your restaurant.
Comparing your measurements against the current benchmarks can generate creative new ideas in which to implement. It also creates an overall company mindset and culture of continuous improvement which can be assigned to management and ownership, or ideally shared among all employees. Sharing restaurant benchmarks among the entire team is important since the success of a restaurant depends on the entire restaurant team.
Using Benchmarks To Grow Your Business
One of the first steps in using restaurant benchmarks to improve your business is to educate your management team on the importance of monitoring and benchmarking what success is for your restaurant or retail chain . Ideally, each team leader should be know their own success metrics and be held accountable for monitoring them. Then creating strategies to improve underperforming restaurant metrics or ratios. All team members should be able to take ownership of their success metrics and be able communicates directly with management and ownership on how to optimize.
As performance gaps are identified, the team can be utilized to brainstorm ways to close the gaps. Then, you can make corrections, and take measurements on a consistent basis to verify a move in the correct direction. You would then take steps to continue to monitor and iterate on your success strategy over time.
You can optimize more and more benchmarks to further improve your restaurant business over time. Remember, however, that not all benchmarks you find will be an appropriate gauge of how your restaurant is performing. Some benchmarks will tie closely together with your restaurant, while some may not. There is no magic formula. It all comes down to your type of business, culture and operational issues.
New Restaurant Benchmarks
As trends in technology and consumer behavior change, new benchmarks are beginning to emerge throughout the industry. For instance, third-party delivery statistics from companies like DoorDash, GrubHub and UberEats are beginning to be utilized throughout the industry.
Likewise, new customer behavior benchmarks are emerging thanks to WiFi technology and the Bloom Intelligence Customer Intelligence Hub. This technology employs a physical location’s WiFi access points to measure customer behavior in real-time. You can anonymously monitor and log the behavior of any customer with a WiFi-enabled cell phone, tablet or laptop. As a results, specific customer behavior benchmarks known as presence analytics can be uncovered. These include metrics such as dwell times, first-time visitors, repeat rates, and customer churn values.
Another important thing to remember is that you shouldn’t only be comparing your measurements to industry standards. You should also be comparing them to your own historic measurements. This means documenting and analyzing your statistics over time to identify your own trends, positive or negative. Bloom Intelligence provides a set of actionable key performance indicators around customer behavior that you can compare over time or against groups of location to identify issues or success stories quickly.
Restaurant benchmarks can provide both a snapshot of how a restaurant is performing against the industry as a whole, and a long-term tool to help grow your business. Knowing how you stack up against your competitors, you can formulate ways to improve your overall business performance KPIs.
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“This is an integral part of our local store marketing program. We use the e-mails we collect to tell our existing customers about various promotions, specials and discounts, and the analytics tools are amazing at capturing and displaying smart device activity in and around our store.”
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