Measuring restaurant improvements for the remainder of 2012

We’re convinced that if there are any absolutes in the restaurant business this is one of them – what gets measured improves.

For example, restaurateurs who say they’re having success at building their sales have started measuring the results of their marketing activities.

They track the response rates and the incremental sales, costs, and ROI (return on investment) on each promotion. As a result, they know what’s working and what isn’t. This gives them information to stop what they are doing, do more of it, or modify future marketing promotions and tactics.

Operators who have seen improvements in food and labor costs have started to calculate their prime cost and inventory turnover each week and share the results with their managers and kitchen personnel. If there’s a problem, they know it and can respond quickly.

One survey revealed that operators who rate their restaurant’s level of customer service the highest, usually employ mystery shoppers to experience and rate their quality of service. This gives them regular, objective feedback to know how well they are actually doing.

Measuring helps operators make better decisions because their decisions are based more on knowledge (facts and raw data) rather than emotions, gut feel, or the mood they happen to be in at the time.

In your restaurant, which activities are most crucial to your success? Find a way to measure those activities and monitor your progress on a regular basis so you know what’s really going on and can make better decisions to manage it. What you’ll find is that what gets measured usually improves.

(Source: National Restaurant Association)

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