Why Data is Crucial to Restaurant Management Success
Running a bar or a restaurant is difficult. The margins can be razor-thin, talented labor is difficult to find (especially during the ‘Great Resignation’) and the industry is highly competitive.
That’s why data is the foundation to any successful restaurant or bar, whether it’s a chain or small independent business.
The good news is that, with technological advancements, most restaurants and bars now have access to a huge amount of real-time data from different systems – giving them valuable insights into a range of operations across their business.
What is restaurant and bar data, and why is it important?
Bar and restaurant data analytics is the process of collecting and analyzing the data points related to all areas of your business, and using them to build meaningful insights that help you improve your restaurant or bar.
This data can be collected from all areas of a business, from understanding customer satisfaction and better managing your inventory, to ensuring that you’re paying competitive rates to your employees.
What data should your restaurant or bar collect and analyze?
Restaurant and bar data is the foundation to any successful business, but it’s not a magic solution. Collecting and analyzing data presents you with the insights you need to make better business decisions – but you need to create a strategy of continuous improvement moving forward.
Inventory management data. By gaining clearer visibility and more control over your food and beverage inventory, your restaurant or bar will gain valuable insights that improve the profitability of your business. You’ll be able to see exactly how much of each inventory item was purchased. Where it was used and if it was wasted.
Monitor customer satisfaction. What customers think of your business is important for two main reasons. Firstly, the more you can build a loyal customer base the better you will future proof your revenue. Secondly, word-of-mouth marketing can help you to substantially grow your business and reach new customers – particularly when considering the importance of online reviews in today’s customer journey.
Your POS is a valuable source of data. Point-of-sale systems (POS) are another great source of data for restaurants and bars. Monitoring this system for some key metrics can give businesses a better idea of their most popular dishes and the average ticket size per customer. This allows restaurants and bars to make better menu and pricing decisions based on their customers’ buying habits.
Track financial data to ensure you are profitable. It’s crucial that you monitor and analyze your financial data. The hospitality industry can have thin margins, and that means restaurants and bars must keep their bottom line tight at all times.
To ensure they are profitable, restaurants and bars should keep track of profits, loss, cash flow and cost to analyze how they are performing on a consistent basis. Data points to look at should include; wages, revenue, recurring bills (such as rent and utilities), food cost, cash flow projections, profit and the average cost per item.
Read the full article here from our friends at Sculpture Hospitality.
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