The Key to Subway Cafe's Success: Tracking the Top 7 KPI Metrics

As a serial entrepreneur, I understand the importance of tracking key performance indicators (KPIs) in every business. For Subway Cafe, the world's largest fast-food franchise, tracking KPIs is even more critical to stay ahead of the competition.

With the rise of coffee shop culture, Subway Cafe has become a go-to spot for many customers. But how do you measure success and ensure steady growth? The answer lies in tracking the top 7 KPI metrics that truly matter.

• Average Daily Sales per Store: This KPI measures the average sales per day for each Subway Cafe. Tracking this metric helps to identify the most profitable stores and optimize revenue streams.
• Customer Retention Rate: Building customer loyalty is essential in any business. Tracking this KPI helps to measure how many customers return to the store, and make necessary changes to retain them.
• Average Order Value: This metric tracks the average transaction amount per customer and helps businesses to increase sales by promoting higher-priced menu items.

These KPIs and others such as the number of new customers acquired, total revenue, customer satisfaction score, and the number of complaints resolved promptly help Subway Cafe to stay ahead of the competition and provide excellent customer service. Keep reading to find out how to track and calculate these vital Subway Cafe KPI metrics.

Average daily sales per store

As a seasoned entrepreneur, I can tell you that tracking key performance indicators (KPIs) is essential to the success of any business. One important KPI that all Subway Cafe owners should be monitoring is the average daily sales per store. Let's take a closer look at this metric.

Definition

The average daily sales per store is a KPI that measures the total sales made by a Subway Cafe location in a single day, on average, over a given period of time.

Use Case

By tracking the average daily sales per store, Subway Cafe owners can gain valuable insights into the overall performance of their business. This metric can help them identify trends, such as which products are selling well and which are not, and make adjustments to their operations accordingly. It can also help owners set realistic sales goals and measure their progress towards achieving them.

How To Calculate KPI

To calculate the average daily sales per store, you need to divide the total sales made by a Subway Cafe location over a given period of time by the number of days in that period. The formula looks like this:

Calculation Example

Let's say that a Subway Cafe location made $50,000 in sales over a 30-day period. To calculate the average daily sales per store, you would divide $50,000 by 30, giving you an average daily sales per store of $1,666.67.

KPI Advantages

• Helps Subway Cafe owners identify sales trends
• Allows owners to set realistic sales goals
• Enables owners to measure their progress towards achieving sales goals

KPI Disadvantages

• Does not take into account external factors that may impact sales, such as the weather
• May not provide a complete picture of a Subway Cafe's overall performance
• Can be difficult to compare across different locations and time periods

KPI Industry Benchmarks

According to industry data, the average daily sales per store for a Subway Cafe location is around $4,000. However, this can vary depending on factors such as location, seasonality, and competition.

Customer retention rate

As a serial entrepreneur who has started and run many businesses, I can tell you that customer retention rate is crucial for any business including Subway Cafe. In this section, we'll look at the definition, use case, how to calculate KPI, calculation example, KPI advantages, KPI disadvantages, and industry benchmarks for the KPI: 'Customer retention rate'.

Definition

Customer retention rate (CRR) is a measure of how many customers you retain over a given period. It is the percentage of customers who continue to do business with you compared to the total number of customers you had at the beginning of that period. This can be a month, a quarter, or a year.

Use Case

Subway Cafe can use CRR to understand whether their customers are coming back or not. If the rate is high, it means their customers are satisfied with their services, and they're likely to come back. If the rate is low, there's a problem and Subway Cafe needs to investigate why their customers are not returning.

How To Calculate KPI

To calculate CRR, use this formula:

Where:

• CE = number of customers at the end of the period
• CN = number of new customers acquired during the period
• CS = number of customers at the start of the period

Calculation Example

Suppose Subway Cafe had 500 customers at the start of the quarter (CS). During the quarter, they acquired 50 new customers (CN). At the end of the quarter, they had 450 customers (CE). Using the formula above, we can calculate their CRR:

This means Subway Cafe retained 80% of their customers during the quarter.

KPI Advantages

• CRR is a good indicator of customer loyalty
• It helps you keep track of how many customers you're retaining
• It shows how satisfied your customers are with your products or services

KPI Disadvantages

• CRR doesn't tell you why customers are or are not coming back
• It doesn't take into account seasonal variations or other factors
• It may not be as helpful for businesses with a small customer base

Industry Benchmarks

The average CRR varies by industry, but a good benchmark for Subway Cafe would be 80%. However, some industries, such as SaaS, have much higher retention rates.

Average Order Value

As a pro serial entrepreneur, I've learned the importance of tracking KPI metrics for my businesses. One of the most critical KPIs for a Subway Cafe is the Average Order Value.

Definition

The Average Order Value (AOV) is the average amount of money a customer spends on an order at a Subway Cafe. This KPI directly impacts revenue and profitability.

Use Case

AOV is crucial for Subway Cafes since it helps to identify how much customers spend per order. This helps cafes to identify opportunities for upselling and cross-selling, which in turn increases revenue per customer and helps with customer retention.

How To Calculate KPI

The formula to calculate AOV is:

Calculation Example

Let's assume that a Subway Cafe had $10,000 in total revenue and 500 total orders in a month. The calculation would be:

So, the AOV for the Subway Cafe for that particular month is $20.

KPI Advantages

• Helps to identify customer spending habits and preferences.
• Enables cafes to identify opportunities for upselling and cross-selling.
• Provides insights to optimize menu offerings and pricing strategies.

KPI Disadvantages

• Does not take into account the number of items sold per order, making it less accurate for cafes with varying menu offerings.
• AOV can be affected by outliers, such as large group orders or catering orders.

KPI Industry Benchmarks for the KPI: 'Average Order Value'

Industry benchmarks for AOV vary depending on the location, size, and menu offerings of Subway Cafes. Generally, the benchmark AOV for a Subway Cafe should be around $15-$25 per transaction.

Number of new customers acquired

As a serial entrepreneur with vast experience in running successful businesses, one crucial metric that has always come up in measuring the success of my ventures is the number of new customers acquired.

Definition

The 'Number of new customers acquired' KPI measures the number of customers who purchase a product or service from your Subway Cafe for the first time during a specified period.

Use Case

This KPI is essential in measuring the success of your marketing campaigns and sales efforts. It also provides insights into the effectiveness of your customer acquisition strategies.

How To Calculate KPI

To calculate this KPI, use the following formula:

Calculation Example

Let's assume your Subway Cafe acquired 80 new customers during the month of January, and you have a total of 500 existing customers.

The negative result shows that you lost 420 customers during the month.

KPI Advantages

• Helps track the effectiveness of your marketing campaigns and customer acquisition strategies.
• Allows you to measure the growth rate of your business in terms of new customers.
• Aids in decision-making by identifying which acquisition channels are most effective.

KPI Disadvantages

• Does not factor in customer retention rate.
• May not consider other factors that can affect customer acquisition, such as seasonality or market trends.
• May provide misleading insights if customer behavior changes.

KPI Industry Benchmarks

The benchmark for the number of new customers acquired varies across industries and businesses. However, the average benchmark for a Subway Cafe is 20 to 30 new customers per month.

Total Revenue

As a Subway Cafe owner, tracking your business's performance is essential, and key performance indicators (KPIs) can help you do just that. The 'Total Revenue' KPI is one of the most critical metrics you need to track regularly. In this chapter, we will discuss everything you need to know about this KPI.

Definition

Total revenue is the total amount of money your Subway Cafe generates from all of its sales during a specific period, usually a month or a year.

Use Case

The total revenue KPI is essential as it helps you determine if your Subway Cafe is profitable or not. It tells you if you're making enough revenue to cover your expenses, including supplies, rent, utilities, and employee salaries. By tracking this KPI, you can forecast your earnings and make necessary adjustments to your marketing and sales strategies to meet your revenue goals.

How to Calculate KPI

You can calculate the total revenue KPI by adding up all the sales you make from your Subway Cafe. The KPI formula is as follows:

Calculation Example

Suppose your Subway Cafe makes $20,000 in sales for the month of June. The total revenue KPI calculation would be as follows:

KPI Advantages

• Helps you determine if your Subway Cafe is profitable
• Enables you to set realistic revenue goals
• Allows you to forecast your earnings accurately

KPI Disadvantages

• Does not take into account the cost of goods sold (COGS)
• Cannot be used as the sole indicator of business success

KPI Industry Benchmarks

Industry benchmarks for the total revenue KPI vary based on the location and size of your Subway Cafe.

Customer satisfaction score

As a seasoned entrepreneur, I understand that my business's success rests heavily on keeping my customers satisfied. To that end, one of the most critical KPIs that I track is the customer satisfaction score.

Definition

The customer satisfaction score is a metric that measures how satisfied customers are with a product, service, or experience. It takes into account both qualitative and quantitative data, such as customer feedback, surveys, and reviews, to provide a comprehensive understanding of overall satisfaction.

Use Case

Tracking customer satisfaction is essential for businesses because it helps identify areas of improvement, measure success in meeting customer needs, and ultimately increase customer loyalty and retention.

How To Calculate KPI

To calculate the customer satisfaction score, use the following formula:

Calculation Example

Let's say that you recently surveyed 100 customers and 85 of them reported being satisfied with their experience. Your customer satisfaction score would be:

KPI Advantages

• Helps identify areas where improvements can be made to boost satisfaction and loyalty.
• Can help drive revenue growth by increasing customer retention and acquisition.
• Provides a clear metric for measuring success in meeting customer needs and expectations.

KPI Disadvantages

• May not provide a complete picture of customer satisfaction as it relies on self-reported data.
• Does not account for the varying levels of satisfaction that customers may have.
• Can be impacted by sample size and survey response rates.

KPI Industry Benchmarks

Industry benchmarks for the customer satisfaction score vary depending on the industry and type of business. However, a good benchmark to aim for is around 80% satisfaction.

Number of Complaints Resolved Promptly

As a Subway Cafe, one of the important KPI (Key Performance Indicators) is to track the number of complaints that are resolved promptly. It is crucial to ensure customer satisfaction and retain customers. In this chapter, we will discuss the definition, use case, how to calculate KPI, KPI calculation example, advantages, disadvantages, and industry benchmarks for the KPI 'Number of Complaints Resolved Promptly'.

Definition

The 'Number of complaints resolved promptly' KPI measures the number of customer complaints resolved within a specific time frame. It focuses on the turnaround time of resolving customer complaints and maintaining customer satisfaction.

Use Case

At Subway Cafe, customer satisfaction is the priority. The 'Number of complaints resolved promptly' KPI is crucial to ensure customer retention and maintain a positive brand image. It helps track the customer service quality and enables the management team to take necessary actions to improve it.

How to Calculate KPI

The formula to calculate the 'Number of complaints resolved promptly' KPI is:

Calculation Example

Let's assume that the total number of complaints received by the Subway Cafe is 50 and out of that, 40 complaints were resolved promptly. Then the calculation of the KPI will be:

KPI Advantages

• Helps maintain customer satisfaction
• Allows management to track customer service quality
• Enables the management team to take necessary actions to improve customer service quality

KPI Disadvantages

• Does not consider the severity of the complaint
• Does not consider the time it takes to resolve the complaint
• May not always accurately reflect customer satisfaction

KPI Industry Benchmarks

The industry benchmark for the 'Number of Complaints Resolved Promptly' KPI is a prompt resolution of at least 80% of the total complaints received.

Tracking key performance indicators (KPIs) is essential to the success of any business. Subway Cafe, the world's largest fast-food franchise, recognizes the importance of monitoring its business operations to stay competitive in the market.

By tracking KPIs such as average daily sales per store, customer retention rate, and average order value, Subway Cafe gains valuable insights into its business operations. These metrics help in identifying the most profitable stores, improving customer loyalty and engagement, and promoting higher-priced menu items.

• Additionally, Subway Cafe tracks the number of new customers acquired to assess the success of its marketing and advertising efforts.
• Total revenue is another critical metric that indicates the financial health of the business.
• The customer satisfaction score is a measure of how well Subway Cafe meets customer expectations, and resolving the number of complaints promptly is critical in achieving high customer satisfaction.

In conclusion, tracking KPIs is vital in measuring the success of any business, and Subway Cafe has identified the top 7 metrics that truly matter. By monitoring these KPIs regularly, Subway Cafe can take data-driven decisions to stay ahead of the competition and provide excellent customer service.