Posted on Wednesday, 30 August 2017.

Metrics and KPIs for Hospitality

Brewing your output to perfection

Metrics and KPIs for Hospitality

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.

KPIs (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.



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

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

Average Sale = Beverage Revenue ÷ Number of Customers

Beverage Cost = Beverage Cost ÷ Beverage Sales


KPIs for Cafe


These equations will provide you information for successful management in the hospitality industry. 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.

We encourage you to try these equations to improve your businesses' output. Discover how Calxa can help your small business.  


Tags: AccountantSmall BusinessUnit Costing