What it is: An estimate of the number of diners that can be seated in your restaurant at the same time.

Why it’s important: Taken together with your table turnover rate and average ticket size, this number will tell you the maximum revenue your restaurant can possibly generate within a given time period. This is also a valuable way to compare your restaurant’s actual seating versus the theoretical capacity in order to maximize the space.

How to calculate:

Measure the total square footage of your restaurant’s front of house area.

Measure and subtract the square footage of any non-dining space (e.g., waiting area, beverage station, cash register, etc).

Divide the total amount of space by 15 (assuming 15 square feet of space per average diner).

Metric #14: Percentage of Repeat Customers

What it is: The proportion of customers that come back to your restaurant within a certain time period.

Why it’s important: Measures the loyalty of your patrons and how likely individual diners are to come back to your restaurant after dining there once.

This is a great metric for restaurants that’ve been keeping diligent records. If you haven't, that's alright, but keep it in mind when it comes time to upgrade your technology so you don't miss the opportunity.

How to calculate:

Choose a time period (3 months, 6 months, 12 months).

Calculate the total number of customers served within that time period.

Use your POS, CRM, or other technology to calculate the number of unique customers within that time period.

Subtract the number of unique customers from the number of total customers to calculate the number of repeat customers.

Divide the number of unique customers by the number of total customers within that time period.

How to Measure and Use These Metrics

Numbers are great, but how you use them is what ultimately matters.

When you measure these metrics, they give you some kind of insight into your restaurant business and how it’s running. But you need to know how to use that data in order to learn and improve.

Here are some general rules to follow.

Always Use Apples to Apples Comparisons

In most cases, it’s wise to establish a period that you’d like to analyze, and keep it consistent across all metrics. This could be a weekly period, 28-day cycle, or quarterly basis usually determined by the fiscal demands of your business. This allows you to set a baseline for your calculations, sync goals and achievements, and ensures you’re always comparing apples to apples when discussing different metrics.

Take a Full View of Restaurant Operations

Don’t use singular metrics, but instead analyze several aspects of your business at once. One metric alone won’t give you an overall picture of your business’ health but using several in conjunction will give further insight.

Measure from the Bottom Up

When it comes to calculating metrics, begin with the more specific calculations first. Once that’s completed it’s easy to use these figures to do your high-level equations next. Most restaurant accounting software will help you make these calculations in real time.

For example, when calculating break-even point, one would start by subtracting variable costs from sales, then dividing this by your total sales to get a percentage. Carry this percentage further into the equation to easily determine your break-even point!

Stay Diligent

Your metrics will only be as accurate as you are disciplined and diligent when creating them. The more effort you put into these calculations from the get-go, the easier they will be to update and maintain in the future. Carefully gather data and try to account for the wide array of variable costs and factors that may affect the overall health of your business. A seasoned restaurateur can tell you that keeping your analytical house in order is the most crucial step to having a full understanding of your business.