7 Must-Track KPIs for Multi-Cuisine Cafés: From Customer Satisfaction to Monthly Revenue Growth!

Welcome to our latest blog post about the top seven multi-cuisine café KPI metrics! As a serial entrepreneur, I have started and run various businesses, and I know how important it is to track and measure key performance indicators.

In today's fast-paced and highly competitive café industry, tracking these KPIs is crucial to ensure the long-term success of your business. Let's take a closer look at a few of these metrics and learn how to calculate and track them.

• Customer satisfaction score: It is no secret that satisfied customers are key to any business's success. Measuring your customer satisfaction score will help you gauge the level of happiness your customers experience when they visit your café.
• Monthly revenue growth rate: As your business grows, you want to keep an eye on your monthly revenue growth rate. This KPI measures the percentage increase or decrease in revenue from one month to the next.

These are just a few of the KPIs we will be exploring in detail in this blog post. Keep reading to learn more about how to track and calculate these essential metrics as you work towards the success of your multi-cuisine café.

1. Customer satisfaction score

Customer satisfaction score (CSS) is a metric that measures how well a multi-cuisine café is meeting its customers' expectations. CSS is an important KPI for any café that seeks to excel in customer service. In this chapter, we discuss the definition, use case, how to calculate KPI, calculation example, KPI advantages, KPI disadvantages, and KPI industry benchmarks for CSS.

Definition

CSS is a metric used to evaluate how satisfied customers are with the café's product, service, and overall experience. It is a score usually expressed as a percentage, which shows how well the café is performing according to its customers' expectations.

Use Case

Multi cuisine café owners can use CSS to track the level of customer satisfaction over time, identify areas for improvement in their service and overall experience offerings, and develop strategies to enhance their customer satisfaction levels.

How to Calculate KPI

The formula for calculating CSS is:

The number of satisfied customers includes customers who have rated their experience at the café as good or excellent. The total number of customers includes all customers who have visited the café during a given period.

Calculation Example

Suppose that a multi-cuisine café has 100 customers in a month, and 85 out of 100 customers gave good or excellent feedback on their experience. Then, the CSS for the café would be:

KPI Advantages

• CSS provides an objective measurement of customer satisfaction.
• CSS helps to identify areas of strengths and weaknesses in the café's product, service, and overall experience offerings.
• CSS provides feedback for improvement and the benchmark for progress.

KPI Disadvantages

• CSS is affected by the customers' expectations and perception of the café, which can be subjective.
• CSS does not provide insights into the reason for customer satisfaction or dissatisfaction.
• CSS alone does not measure loyalty or the customers' willingness to recommend the café to others.

KPI Industry Benchmarks

The industry benchmark for CSS varies depending on the type of café, location, and customer demographics. Typically, an excellent CSS score is over 90%, while a good CSS score is between 80%-89%. However, industry benchmarks can be useful starting points for café owners to set their targets and compare performance.

Monthly Revenue Growth Rate

Definition

The Monthly Revenue Growth Rate KPI is a measurement of the percentage of growth in monthly revenue for a business, as compared to the previous month. This measurement provides insight into whether a business is increasing or decreasing its revenue, and can help identify trends that may impact future business decisions.

Use Case

The Monthly Revenue Growth Rate KPI is particularly useful for businesses that rely on a steady stream of revenue to remain profitable. By tracking revenue growth month over month, businesses can identify trends in their sales, and can adjust their strategies as needed to maintain growth.

How To Calculate KPI

To calculate the Monthly Revenue Growth Rate KPI, you divide the difference in revenue between the current month and the previous month, by the revenue from the previous month, and then multiply by 100. The formula for the KPI is:

Calculation Example

Suppose a business had revenue of $100,000 in January and $120,000 in February. The Monthly Revenue Growth Rate KPI for February would be:

KPI Advantages

• Provides insight into business trends.
• Helps identify areas for improvement.
• Allows businesses to adjust strategies to maintain revenue growth.

KPI Disadvantages

• May be impacted by seasonal fluctuations.
• Does not provide insight into the underlying causes of revenue growth or decline.
• May be impacted by one-time or exceptional events that may not reflect long-term trends.

KPI Industry Benchmarks

The Monthly Revenue Growth Rate KPI varies by industry, and the acceptable growth rate will depend on the business model, sector, and stage of growth. Generally, a monthly growth rate of 5% or more is considered healthy for most businesses.

3. Average Order Value

Definition

The Average Order Value (AOV) measures the average amount of money spent each time a customer places an order at a multi-cuisine cafe. It helps businesses determine the average value of each purchase and identify upselling opportunities to increase the overall revenue.

Use Case

AOV is a crucial metric for multi-cuisine cafes, as it provides insight into customers' spending habits and helps business owners understand the most profitable items on the menu. By analyzing AOV data, cafes can identify trends, such as popular items, and offer promotions and upsell opportunities to drive revenue growth.

How to Calculate KPI

To calculate AOV, divide the total revenue received by the number of orders placed during the period.

Calculation Example

Suppose a multi-cuisine cafe generates $10,000 in revenue from 500 orders in a month. The AOV for that period would be:

Hence, the AOV for the cafe for that month is $20.

KPI Advantages

• Helps identify the most popular items on the menu.
• Provides insight into customer spending habits and increases revenue growth opportunities.
• Enables cafes to offer promotions and upsell opportunities to maximize profits.

KPI Disadvantages

• AOV measures the average value of each order, but it doesn't take into account the frequency of purchases.
• Doesn't consider the cost of goods sold or other expenses associated with the cafe's operations.

KPI Industry Benchmarks

The industry benchmark for AOV in the cafe industry varies depending on the type of cafe and its location. However, on average, the AOV for most cafes ranges from $15 to $30.

4. Number of Repeat Customers

Definition:

The number of repeat customers is the count of customers who visit the cafe more than once. It indicates the level of customer loyalty and reflects the extent to which customers appreciate the services provided by the cafe.

Use Case:

The number of repeat customers is a crucial KPI for multi-cuisine cafes. It helps in identifying and retaining loyal customers, which is critical for increasing revenue and sustaining long-term growth. Furthermore, this KPI can assist in improving customer experience by understanding their preferences and providing better services.

How To Calculate KPI:

To calculate the number of repeat customers, first, determine a time frame and track the number of customers who visit the cafe more than once during that period. Then, count the number of customers who have visited the cafe more than once and divide it by the total number of customers who visited the cafe during that time frame. Multiply the result by 100 to get the percentage of repeat customers.

Calculation Example:

Suppose a multi-cuisine cafe had 500 customers in the month of January, out of which 200 were repeat customers.

Repeat Customers = 40%

KPI Advantages:

• Helps in identifying loyal customers and retaining them
• Assists in improving customer experience
• Provides insight into customer preferences
• Indicates the level of customer satisfaction

KPI Disadvantages:

• Does not consider the frequency of visits by repeat customers
• It is not an accurate reflection of customer loyalty as a higher number of repeat customers may not necessarily mean that they are loyal customers
• Seasonal factors and circumstances can significantly affect results

KPI Industry Benchmarks:

The number of repeat customers varies across the industry and can be influenced by several factors such as location, quality of food and services, marketing strategies, etc. According to recent industry reports, an average multi-cuisine cafe has a repeat customer rate of 30-35%.

5. Social Media Engagement Rate

Definition

Social media engagement rate is a KPI that measures the level of interaction between your audience and your social media content. It helps you understand if your content is resonating with your target audience or not.

Use Case

Social media engagement rate is important because it shows you how engaged your audience is with your business. A high engagement rate means that your audience is interested in your content and is likely to remain loyal. Furthermore, social media engagement rate is an excellent indicator of brand awareness and reach.

How to Calculate KPI

The formula for social media engagement rate is:

Calculation Example

Let’s say that you have a total of 10,000 followers on Instagram. In the last week, your posts received 500 likes, 100 comments, and 50 shares. To calculate your social media engagement rate:

KPI Advantages

• Indicates audience interest: High engagement rate means that the audience is interested in the content.
• Increases brand loyalty: Engagement rate helps build brand loyalty among the audience.
• Measures brand awareness: It reflects how well your brand is known in the market, and how many people are talking about your content

KPI Disadvantages

• Not comprehensive: This KPI cannot measure the return on investment or sales made through social media.
• False positives: A high engagement rate does not indicate whether the engagement is positive or negative.
• May not be useful for all businesses: Engagement rate may not account for industry-specific nuances or metrics that are important for a particular business.

KPI Industry Benchmarks

According to Hootsuite, the average engagement rate across all industries is 1.22%.

6. Inventory turnover ratio

Definition

The inventory turnover ratio is a financial metric that measures the rate at which a restaurant or cafe is selling and replacing its inventory over a particular period.

Use Case

The inventory turnover ratio is one of the most critical KPIs for any multi-cuisine cafe. It indicates whether an establishment is stocking the right amount of products or not. A low inventory turnover ratio may indicate that a cafe is overstocked, has excess products on hand, or isn't selling as much as it could be. On the other hand, a high inventory turnover ratio may indicate that a cafe is understocked, as it is frequently selling out of products, or is very popular with customers.

How To Calculate KPI

Inventory turnover ratio can be calculated through the following formula:

Calculation Example

Suppose a multi-cuisine cafe has a total cost of goods sold of $100,000 for a period and has an average inventory of $30,000. Using the formula above, we can calculate the inventory turnover ratio as follows:

KPI Advantages

• Helps management determine if they are investing in the right inventory levels to maximize profits
• Allows management to identify when inventory is not selling as quickly as anticipated
• Helps to inform purchasing decisions and keep inventory levels optimized

KPI Disadvantages

• May not account for seasonal fluctuations or other external factors that impact inventory sales
• May not be useful for businesses that produce their goods or have unique inventory circumstances
• Does not reflect inventory quality or the potential impact of slow-moving products on other products by taking up valuable shelf space and sapping sales dollars away from more popular items.

KPI Industry Benchmarks

The inventory turnover ratio can vary widely based on the industry benchmark, but for the food and beverage industry, the ratio is approximately 2 to 3 on average. It is important to note that this ratio can differ based on the size of the establishment or location.

7. Employee Turnover Rate

Definition

Employee turnover rate is the rate at which employees leave a company and are replaced by new hires.

Use Case

High employee turnover can be a costly problem for businesses. It can result in lost productivity, reduced morale, and increased costs associated with hiring and training new employees. Tracking employee turnover rate can help businesses identify potential issues and take steps to address them before they become major problems.

How to Calculate KPI

Calculation Example

KPI Advantages

• Identifies areas of concern for the business
• Allows for proactive measures to reduce employee turnover
• Enables better decision-making for HR policies and management strategies

KPI Disadvantages

• Does not provide information on reasons for turnover or employee satisfaction
• Does not differentiate between voluntary and involuntary turnover
• Does not account for employee promotions or transfers

KPI Industry Benchmarks

The average employee turnover rate varies by industry, with some industries having higher or lower rates than others. According to a report by the Society of Human Resource Management from 2020, the average employee turnover rate across all industries is 19%. However, the hospitality and retail industries typically have higher turnover rates, while healthcare and finance have lower rates.