Have you ever thought about how collecting and analysing your sales data could help you improve your restaurant’s performance? While a traditional vision of restaurants as businesses driven by gut feel, nowadays we have access to data from our point-of-sale systems, staff schedulers, inventory systems, loyalty programs, review platforms, reservation systems, and more.
But, what can you do with all this information to improve the performance of your restaurant? That’s where sales analytics come into the stage. Join me on this journey to discover restaurant data and how to implement data analytics through these 15 essential tips for achieving your goals. Take your business to the next level!
Restaurant Business in Numbers: United States Statistics Context
Currently, Americans spend about 70.1 billion dollars on eating out each month, while approximately 34% visit casual dining restaurants once a week. Simultaneously, the sales forecast for the U.S. restaurant industry in 2023 was around $997 billion, and an average profitable restaurant enjoys a profit margin of up to 6%.
While this context represents excellent opportunities for restaurant businesses, it also projects a highly competitive panorama. Consequently, ranking a position goes beyond providing great services. It also demands data-driven strategies. But what are the restaurant data after all?
What Restaurant Data is Necessary to Take Into Consideration in Sales Analytics?
Data defines a collection of facts or statistics to analyze. This includes how much money you’re taking in, transactional and product data. In detail, it is possible to classify them this way.
POS Data:
POS data will enable you to deep dive into the details of every one of your sales and optimize them at every step. By implementing a modern cloud-based POS System you will be able to gather all the information you need to produce sales analytics in your restaurant such as transactional data and those related to tip size, discounts added, order type, and more.
Inventory Data:
Inventory Management Systems keep track of all things stock. With a modern POS System, you may align data from inventory and input all your recipes, you should know exactly how much of each ingredient is being used, what vendor it’s coming from, and when it needs replenishing. You can use inventory data to keep track of wastage as well, helping you reduce the amount of food waste you generate.
Customer Data:
These data include the average of customers visiting your restaurant, and some other crucial indicators for sales analytics like what visitors order, and how large their transactions are. This can be done through loyalty programs, reservation software, or a dedicated restaurant App.
Delivery Data:
Knowing your most popular delivery platforms, what menu items are most popular per platform, as well as how quick delivery times are can give you information on which platforms to promote or where to offer deals.
Once you’ve consolidated all your data, you can observe patterns. Analyzing these data trends over time and juxtaposing them with other datasets will provide valuable insights into your business that you might not have considered before.
Data Analytics for a Restaurant: 15 Practical Tips
As we have seen before, recognizing data as the backbone of your sales planning is crucial. Moreover, sales analytics has evolved into a discipline more essential than ever in the restaurant business today.
Therefore, we have gathered insightful tips that will certainly help you navigate through data analysis approaches to enhance success. Take the next step in optimizing your sales strategy by checking out these valuable tips today!
1- Define Clear Dining Experience Goals:
Identify specific goals for enhancing the dining experience, such as improving table turnover, increasing average order value, or boosting customer loyalty. Clear objectives will guide your analytics efforts and help you focus on the metrics that align with your restaurant’s unique vision.
2- Monitor Menu Performance:
Dive into menu analytics to identify top-selling items, customer favorites, and underperforming dishes. Use this data to optimize your menu, adjust pricing, and strategically promote high-margin items.
3- Implement a Point-of-Sale (POS) System:
Invest in a POS system that seamlessly integrates with your sales analytics tools. A POS system can provide real-time data on sales, track customer preferences, and streamline transactions, giving you a comprehensive view of your restaurant’s performance. Moreover, a cloud-based POS solution offers exceptional control over the restaurant stocks and inventories.
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4- Use Customer Loyalty Programs:
Implement a customer loyalty program at your restaurant and track its effectiveness through sales analytics. Monitor participation rates, redemption patterns, and the impact on customer retention. Adjust your loyalty program based on insights gathered from the data.
5- Optimize Inventory Levels with Smart Inventory Management:
Restaurants can employ inventory management software to optimize their stock levels. Smart inventory management ensures that ingredients are utilized efficiently, reducing unnecessary waste and associated costs. By staying on top of inventory levels, restaurants can streamline their supply chain, prevent stockouts, and improve operational efficiency.
6- Analyze Social Media Engagement:
While social media is a hub for sales globally, assessing the metrics of social media is an effective way to implement your restaurant sales analytics. Monitor comments, reviews, and shares to understand how your restaurant is perceived online. Use this information to tailor marketing strategies and address any concerns or feedback.
7- Create a Data Warehouse:
If you want to extract insights from your data, it’s crucial to have a centralized storehouse for all your data streams. This can be achieved by connecting them through an API, uploading them via CSV, or entering them manually. Purpose-built business intelligence and reporting platforms allow for the seamless integration of data, catering to the specific needs of any size of restaurant.
8- Optimize Online Ordering Sales Data at your Restaurant:
For restaurants offering online ordering, analyze data related to order frequency, popular menu items, and delivery times. Use this information to streamline operations, enhance delivery services, and offer promotions that resonate with your online customer base.
9- Track Table Turnover Rates:
Efficient table turnover is crucial for maximizing revenue. Data on table turnover rates during peak hours is a KPI that you definitely need to implement while you develop sales analytics at your restaurant. This provides the insights you need to identify any bottlenecks in service and implement strategies to enhance efficiency without compromising the dining experience.
10- Leverage Reservation Data:
If your restaurant accepts reservations, analyze reservation data to understand peak dining times, no-show rates, and customer preferences. This information can help you optimize staffing levels, reduce wait times, and enhance the overall dining experience.
11- Monitor Staff Performance:
Utilize sales analytics to evaluate the performance of your staff. Track individual server sales, average tips, and customer satisfaction ratings. This data can guide training efforts, recognize high-performing staff, and identify areas for improvement.
12- Track Customer Satisfaction:
Happy customers are more likely to become repeat customers. Incorporate customer satisfaction metrics into your sales analytics, such as Net Promoter Score (NPS) or customer feedback surveys. Satisfied customers not only drive sales but also contribute to positive word-of-mouth marketing.
13- Measure Average Check Size:
By measuring average check size, businesses can identify opportunities to increase revenue by upselling or cross-selling.
14- Utilize Predictive Sales Analytics in your Restaurant:
Leverage predictive analytics to forecast future sales trends and identify potential opportunities. By analyzing historical data, you can make informed predictions about customer behavior, allowing you to adjust your sales strategy proactively.
15- Regularly Review and Adjust:
Sales analytics is an ongoing process. Regularly review your restaurant data, identify trends, and adjust your sales strategy accordingly. Being agile in your approach allows you to respond quickly to market changes and customer preferences.
iPos: A Hub for Sales Data Collection at Your Restaurant
Incorporating these 15 tips into your restaurant’s sales strategy empowers you to make informed decisions, optimize your sales processes, and achieve sustainable growth. Hence, investing in comprehensive technologies that provide access to all sorts of data mentioned above is necessary.
iPos is a cloud-based POS solution ideal for restaurants and food and beverage ventures. IPos is not only a point of sale that provides effectiveness in sales operations. Beyond that limited vision, iPos is a hub for sales data collection, integrating useful tools such as Inventory Manager, Loyalty Programs, Detailed and Analytical Back Office Features, and Smart Supplier Management.
Final Overview
Sales analytics is not just about numbers; it’s about unlocking the potential within your data to stand in the competitive landscape. While data collection and analysis are crucial in today’s world, many tech tools have been developed to gain information. A cloud-based modern POS system is, consequently, a master weapon for your business success.
In iPos platform, you will find all that a small restaurant needs to manage all processes from only one place. So, if you want seamlessly manage your restaurant, look no further than iPos!
