Measure Your Way to Increased Restaurant Profits

Of all the theories in restaurant marketing, one of the most crucial to implement is the concept of metrics; of measuring every activity that you do, analyzing its effectiveness, throwing out what is ineffective and doing more of what is.

Good restaurant marketers and business people know that anything you measure improves. If you actively track your sales, they improve. If you track the rate of complaints, you end up with less. It makes sense. If you focus on something and therefore understand what the issues are and what needs to be addressed then you can make improvements. And it is surprisingly something that very few people do, including your competition. So measuring everything that you do can become an effective way of creating a competitive advantage with your marketing.

It is also a way to see your restaurant marketing in terms of something that can be improved on instead of just as a success or failure. If your restaurant ad doesn’t work, instead of seeing it as a lousy campaign, you can merely improve on it and see how you fare. A colleague of
mine once called this ‘failing quickly’. What he meant by that was that it is best to try many different restaurant marketing activities in small quantities, look at the results and if you find that it isn’t going to work then move on. In other words, don’t be afraid of trying many new things. Steal from other industries, look what your colleagues are doing, and develop partnerships. Just make certain to measure every single thing that you do and use that knowledge to take further decisions.

Successful restaurant marketers are persistent about measuring the efficiency of absolutely everything that they do. They try many things and if they are successful, they keep doing those things. If they aren’t successful they eliminate them. These highly accomplished business owners and managers also have a set of standard metrics that they use as benchmarks to better understand their business. Most likely you have some measurements already in place, such as your average revenue per head and the margins that you make on certain products and services. These help you better manage what you produce, how you price, and what you sell. In a similar way there are also very important metrics you can use to manage your restaurant marketing spend and activities.

The relentless use of metrics is one of the most important secrets of super successful restaurateurs.