Simply knowing the net profit of your hotel, café or restaurant does not provide you with enough information to successfully run your business. There are other numbers and indicators that can help you identify the strengths and weaknesses of your business. These KPIs for Hospitality are a great starting point for your monthly management reports.

Key Performance Indicators or KPIs (or, as we like to call them Tools for Success), are the perfect performance measures to ensure your business maximises efficiency. So here are our recommended equations to track performance and increase your output. We are really zooming in on these hospitality metrics to help your business.

 

Metrics and KPIs for Hospitality

 

Accommodation

These KPIs are simply looking at maximising the use of the real estate of a Hotel or Lodge. It’s all about getting a return on investment.

Occupancy Rate =  Rooms sold ÷ Rooms available

Average Daily Rate = Total Room Revenue ÷ Rooms sold

RevPAR (Revenue per Available Room) = Total Room Revenue ÷ Rooms available

 

Food Service

Here the metrics and KPIs are mostly focused on maximising raw materials and human resources. It other words, it is about effective purchase strategies and managing a productive labour force.

Food Cost = Food Cost ÷ Food Sales

Food Cost per head = Food Cost ÷ Number of Customers (covers)

Average Sale = Food Revenue ÷ Number of Customers

Labour Cost = Kitchen Wages ÷ Food Revenue

 

Bar Service

Bar service can sometimes be an add on to an existing food business. These metrics will allow you to make informed decisions on the effectiveness of this adjunct service. Above all, it will also help you control stock.

Average Sale = Beverage Revenue ÷ Number of Customers

Beverage Cost = Beverage Cost ÷ Beverage Sales

 

KPIs for Cafe

 

 

Final Thoughts on Metrics and KPIs

These KPIs for Hospitality, are equations that provide you information for successful management in this very competitive industry. Therefore, some of these hospitality metrics help you whether you are seeking to improve productivity or set departmental objectives. In Calxa you can create and customise KPIs using non-financial metrics to ensure your business is set for smooth sailing.

 

Getting Started with KPIs for Hospitality

We encourage you to try these equations to improve your businesses’ output. Sign up for a free Calxa trial and test these KPIs for yourself. Discover how Calxa KPIs can help your small business. For more ideas on the types of KPIs you can use, read 7 KPIs for Retailers.