The five KPIs every hospitality owner should know
Food cost, labour cost, prime cost, average spend and break-even sales, worked through with simple examples.
Made with AI YouTube labels this video: “Content was made with AI”.
Nothing loads from YouTube until you press play. The video then plays from YouTube in privacy-enhanced mode — see our cookie policy.
What you’ll learn
- How to calculate food cost percentage
- How to calculate labour cost percentage
- What prime cost percentage is, and why it is worth tracking every week
- How to calculate average spend per cover
- How to work out break-even sales
About this lesson
What are the most important restaurant KPIs every restaurant owner should know?
You don't need 50 different numbers to understand your restaurant's financial performance. In this video, Ali Solak, founder of Epicurean Digital Consultants, breaks down five restaurant KPIs that every restaurant, café, coffee shop and pub owner should understand.
You'll learn how to calculate:
- Food Cost Percentage
- Labour Cost Percentage
- Prime Cost Percentage
- Average Spend Per Cover
- Break-Even Sales
We use simple real-world examples so you can understand exactly what each number means and why it matters to restaurant profitability.
You'll also see how a small change in average customer spend can affect total sales, why being busy doesn't automatically mean being profitable, and why Prime Cost Percentage is one of the most useful numbers to track every week.
If you're serious about restaurant profitability, these five numbers are a good place to start.