Restaurant Financial Health: Key Metrics Every Owner Must Track

Know Your Numbers

The difference between thriving and struggling restaurants often comes down to financial literacy and real-time monitoring.

Critical Metrics

Prime Cost

Food cost plus labor should stay below 65% of revenue. Track weekly and adjust accordingly.

Average Check Size

Monitor by daypart and server. Upselling training can increase average check by 12-18%.

Table Turn Time

Balance efficiency with guest experience. Optimal times vary by concept but visibility drives revenue.

Customer Acquisition Cost

Know what you spend to bring in each new customer. Compare against lifetime value for marketing ROI.

Cash Flow Management

Maintain 2-3 months of operating expenses in reserve. Negotiate vendor terms and manage accounts receivable actively.