As a business owner, you’ve got a lot going on. That’s why paying attention to your business’ financial health is the most important thing you can do. In this article, we’ll help you identify those costs and show you how to get all the numbers you need on the delivery side with your Skip Analytics to stay on top of it all.
Pay attention to prime costs.
This is THE most important number to know. It affects how you price your menu, order inventory, staff up, budget and, ultimately, how you bring in the bucks.
The prime cost formula:
Costs of goods sold + Total labour costs (more on that in a minute) = Total prime costs.
How can you lower them?
Waste not, want not – It’s estimated that over 9% of Canada’s total food waste comes from restaurants. Reduce your waste and you’ll increase your efficiency, cut costs, and boost your bottom line.
(Source: https://foodpolicyforcanada.info.yorku.ca/goals/goal-5/food-waste/supply-chain-waste/)
Price accordingly – Take everything into account when setting the price for your offerings. And don’t be afraid to change it up if needed depending on availability, seasonality, and customer demand.
Look at labour costs.
Here, we’re talking about anything related to the costs of staffing. This one is an important one to watch — too high and your business might not be financially sustainable, too low and you might be understaffing (and not keeping up with the demand). A good labour cost percentage benchmark is approximately 30% of your gross revenue (or half of your business’ prime costs).
The labour cost formula:
(Total hours worked x Hourly wage) + Taxes + Any benefits/expenses = Total labour costs.
How can you lower them?
Spot peaks and valleys – Let analytics be your guide to help you schedule staff strategically during rush hours and slow times (speaking of, here’s some tips on how to read your Skip Analytics).
Cross-train your team — Train staff to handle multiple roles and duties to speed up service (here some more tips on that one), keep scheduling tight, and maximize efficiency.
Follow food costs.
Track and analyze your food costs on the regular and compare it to your sales data to gauge cost efficiency. This is the data that should influence decisions on things like your menu pricing, ingredient purchasing, and portion sizes. It’s incredibly easy to let these costs slip out of control, especially in these times, so paying attention to them is paramount.
The food cost formula:
(Total cost of goods sold / Total revenue) X 100 = Total food cost.
How can you lower them?
Operation portion control – If portions are too big, margins go out the window, too small and customers will be dissatisfied. Find the sweet spot for size success.
Glory of inventory – Avoid overordering and excessive food waste by keeping tabs on your goods regularly (here are some weekly inventory tips to help make it a snap).
Your power play: Skip Analytics.
The beauty about being a Skip Partner is that you have a ton of precious data right at your fingertips within your Skip Analytics Pages in the Portal. And thanks to our latest revamp, you can check out your stats in two helpful ways.
Detailed Analytics page
Now easier to navigate and understand, we also added some super helpful additions, like insights on how to use your analytics to give business a boost. Here you’ll find:
- Total order breakdowns, including Average Order Value, order type, and completed/not completed orders
- Full customer breakdowns
- Revenue stats
- Order Per Hour graph
Take a video tour of the Detailed Analytics page now.
Simplified Analytics page
This new add-on page gives you a high-level overview of your business’ performance at a glance. Here you’ll find:
- Total orders by revenue and by month
- Average revenue per day and per order
- Customer breakdown
- Peak order time
And here’s a video tour of the Simplified Analytics page.
Keeping a close eye on your financials isn’t just a nice thing to do, it’s crucial for your business’ success. Pay attention to the numbers and adjust accordingly (and regularly) to keep everything in check.
