Picture this: your restaurant had a decent month with €50,000 in revenue, but you're not sure if that's progress or decline. Most operators focus on absolute numbers and miss the critical trends that reveal their business trajectory.
Which KPIs should you track?
Every restaurant needs to monitor these core metrics monthly:
- Revenue per m²: Total revenue divided by venue size
- Average check value: Revenue divided by number of covers
- Food cost percentage: Ingredient costs divided by revenue
- Labor cost percentage: Wages divided by revenue
- EBITDA: Profit before interest, tax, and depreciation
Calculate month-on-month growth
The formula for month-on-month growth couldn't be simpler:
Growth % = ((This month - Last month) / Last month) × 100
💡 Example:
Your revenue in March was €45,000, in April €52,000.
Growth = ((€52,000 - €45,000) / €45,000) × 100
Growth = 15.6%
Recognize seasonal patterns
Don't just compare with last month - also check the same month from last year. From years of working in professional kitchens, I've seen how restaurants follow predictable seasonal patterns:
- January: often lower after holidays
- May-September: patios perform better
- December: often peaks due to holidays
⚠️ Note:
A 10% decline in January can be normal if your January last year was also 10% lower than December.
Track food cost development
Your food cost shifts monthly due to supplier price changes. Calculate it this way:
Food cost % = (Total ingredient costs / Revenue excl. VAT) × 100
💡 Example food cost trend:
- January: 32.1% food cost
- February: 34.2% food cost
- March: 35.8% food cost
Trend: rising - check supplier prices!
Create a dashboard for overview
Build a simple table with these columns:
- Month
- Revenue
- Growth % vs last month
- Growth % vs same month last year
- Food cost %
- Labor cost %
Update this monthly. After several months, you'll spot patterns and trends that would otherwise stay hidden.
Take action based on trends
If your KPIs drop for three straight months, you need to act:
- Rising food cost: Check supplier prices, adjust menu prices
- Declining revenue: Analyze competition, marketing, menu
- Rising labor costs: Check scheduling, efficiency
💡 Tech tip:
Tools like KitchenNmbrs automatically show your monthly food cost and track trends without manual calculations. These apps also calculate growth percentages for you.
How do you calculate KPI development? (step by step)
Gather monthly figures
Record for each month: total revenue, ingredient costs, labor costs, and number of covers. Keep these figures in a spreadsheet or app.
Calculate percentages
Work out food cost % (ingredients / revenue × 100) and labor cost % (wages / revenue × 100). This gives you the ratios per month.
Calculate growth percentages
Use the formula: ((This month - Last month) / Last month) × 100. Do this for all important KPIs to see trends.
Compare with last year
Also check growth compared to the same month last year. This helps identify seasonal patterns and gives a more realistic picture.
Analyze trends
Look for patterns over 3-6 months. One-off spikes are normal, but consistent trends require action on your part.
✨ Pro tip
Track your top 3 appetizers separately every 6 weeks - if their individual food costs creep up, they'll impact your overall margins more than slow-moving entrees that sell just 15 times monthly.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
How often should I calculate my KPIs?
Monthly tracking gives you the clearest picture without overwhelming detail. Some operators check weekly, but monthly captures meaningful trends while keeping your workload manageable.
What's a realistic growth percentage per month?
For established restaurants, 2-5% monthly growth indicates solid performance. New venues might see higher spikes initially, but consistent growth matters more than dramatic jumps.
Which KPI deserves the most attention?
Food cost percentage directly impacts your bottom line and deserves priority tracking. A jump from 30% to 35% means you're losing 5% of revenue to ingredient costs alone.
How do I handle seasonal fluctuations in my calculations?
Always compare against the same month from the previous year, not just last month. January's dip makes perfect sense if it happens annually due to post-holiday dining patterns.
What if my KPIs drop for three consecutive months?
Three months signals a real trend requiring immediate action. Review supplier contracts, analyze competitor moves, and consider menu price adjustments - this isn't coincidence anymore.
Should I track KPIs differently for weekday vs weekend performance?
Absolutely - weekday and weekend metrics often tell different stories about your operation. Weekend food costs might run higher due to premium ingredients, while weekday labor efficiency could vary significantly.
Can I automate KPI tracking completely?
Modern restaurant management systems can handle most calculations automatically. You input revenue and costs, then the software generates trends and growth percentages without manual number-crunching.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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