Accounts Payable Turnover
Description: Accounts Payable Turnover measures how quickly a restaurant pays its suppliers for goods and services received on credit. For luxury restaurant chains, which may have higher food costs and require more frequent deliveries, tracking this KPI can help owners ensure they are managing their cash flow effectively. It is calculated by dividing the cost of goods sold by the average accounts payable balance.
Formula: Cost of Goods Sold / Average Accounts Payable Balance
Example: If a luxury restaurant chain has $10 million in COGS and an average accounts payable balance of $1 million, the accounts payable turnover would be 10. This means the restaurant pays its suppliers 10 times per year on average.
Guest Satisfaction Score
Description: Guest Satisfaction Score measures the level of satisfaction of your customers with their dining experience. For luxury restaurant chains, where quality service and attention to detail are key, tracking this KPI can help owners ensure customer loyalty and maintain a positive reputation. It is typically measured through customer surveys or online reviews and can be calculated as a percentage of positive feedback.
Formula: (Number of Positive Reviews / Total Number of Reviews) x 100
Example: Alinea (Michelin-starred American restaurant)
Gross Profit Margin (GPM)
Description: GPM is a financial metric that shows the profitability of your restaurant by indicating how much money you are making after taking into account the cost of goods sold (COGS). It is particularly important for luxury restaurant chains, which may have higher food costs and higher expectations from customers. GPM is calculated by subtracting the COGS from the total revenue and then dividing the result by the total revenue.
Formula: (Total Revenue - COGS) / Total RevenueExample: The Capital Grille (upscale steakhouse chain)
Labor Cost Percentage
Description: Labor Cost Percentage shows the percentage of total sales that goes towards paying your staff. With a luxury restaurant chain, where quality service and attention to detail are key, tracking this KPI is particularly important to ensure that you are not overspending on labor costs. It is calculated by dividing the total labor cost by total sales.
Formula: Total Labor Cost / Total Sales
Example: Daniel (Michelin-starred French restaurant)
Reservation Cancellation Rate
Description: Reservation Cancellation Rate measures the percentage of reservations that are cancelled by customers. For luxury restaurant chains, which often have high demand and limited seating capacity, this KPI can help owners optimize seating arrangements and minimize revenue loss due to last-minute cancellations. It is calculated by dividing the number of cancelled reservations by the total number of reservations.
Formula: (Number of Cancelled Reservations / Total Number of Reservations) x 100
Example: Per Se (Michelin-starred American restaurant)
Average Spend per Cover
Description: Average Spend per Cover measures the average amount spent by each customer per visit. For luxury restaurant chains, which often have higher menu prices and a more upscale clientele, this KPI can help owners track revenue and profitability. It is calculated by dividing the total revenue by the total number of covers (customers served).
Formula: Total Revenue / Total Number of Covers
Example: Eleven Madison Park (Michelin-starred American restaurant)
Food Cost Percentage
Description: Food Cost Percentage shows the percentage of total sales that goes towards food costs. For luxury restaurant chains, where high-quality ingredients and complex preparations may result in higher food costs, tracking this KPI can help owners ensure profitability. It is calculated by dividing the total food cost by total sales.
Formula: Total Food Cost / Total Sales
Example: Le Bernardin (Michelin-starred French seafood restaurant)
Social Media Engagement
Description: Social Media Engagement measures the level of engagement your restaurant is receiving on social media platforms such as Instagram, Twitter, and Facebook. For luxury restaurant chains, which may rely heavily on word-of-mouth marketing and reputation, tracking this KPI can help owners gauge customer sentiment and adjust marketing strategies accordingly. Engagement can be measured through likes, comments, and shares.
Formula: (Number of Social Media Engagements / Total Number of Followers) x 100
Description: Nobu (upscale Japanese restaurant chain)
Gross Profit Margin
Description: Gross Profit Margin measures the percentage of revenue that remains after deducting the cost of goods sold. For a luxury restaurant chain, which may have higher menu prices and premium ingredients, tracking this KPI can help owners ensure they are maintaining healthy profit margins. It is calculated by subtracting the cost of goods sold from total revenue and then dividing the result by total revenue.
Formula: (Total Revenue - Cost of Goods Sold) / Total Revenue
Example: If a luxury restaurant chain has $5 million in revenue and $2 million in COGS, the gross profit margin would be 60%. This means that for every dollar of revenue, the restaurant is earning 60 cents in gross profit.
