There are so many moving parts in a restaurant that it is extremely difficult to identify and quantify the impact of any one number on your business. It’s true and it is what it is-welcome to the restaurant industry! So what is the best approach for beginning to make sense of all the data that is tracked in a restaurant and how can I use that data to make my business more profitable? Let me make a few suggestions:
- Take steps to ensure your data is accurate
- Look at the variances to the same data for the same period last year
- Pick the largest variances by dollar and by % and begin there
The first step is to ensure your data is accurate. Software, such as Restaurant365, can help in this regard – technology is more reliable and consistent than a person and much less expensive. Secondly, you may not know what is ideal for your business but you can certainly identify what was different than the same day/week/period as last year. Begin your efforts by identifying what you did worse than last year. And lastly, pick the numbers that are the biggest, and have the largest variance % of last year’s numbers, to start with. This will help keep you focused on a few things that will have an immediate impact on your business.
Do these things and you will begin to see what people call ‘making traction’ on your way to more profitability.
Morgan Harris | Co-founder | Restaurant365