Key Performance Indicators need to be formulated using the SMART criteria. I’ve written about this previously and you can find the article here:
Some pub and restaurants owners like to keep their financial data very private and not share any information with their managers and employees. The purpose of this post is to explain how you can give limited information to managers, that will help improve the organisations profitability, without letting managers know exactly what the restaurant or pub profitability is. The best way to achieve this is through regular and systemised Key Performance Indicator reporting and tracking.
Key Performance indicators help pubs and restaurants monitor key business objectives. The three key business objectives for any pub or restaurant are revenue, cost of goods sold and wages. Revenue is obviously a key in any business and cost of goods sold and wages are the 2 largest expenses for any pub or restaurant.
Many POS providers and other restaurant related programs that receive invoice information from suppliers have developed programs that allow these invoices to be imported into accounting programs.
This is seen as a time saver as you don't need to re-enter the invoice into another system which eliminates double entry.
When I started researching this topic, it seemed that there were many sites out there that advocate looking at many different KPI’s for a restaurant or pub.