KPI

What is a KPI?

A KPI (key performance indicator) is a measurable value that shows how well a business is performing against a specific goal. A KPI is more than a number: it’s a number with a target attached. Net sales is data; net sales against last week’s forecast is a KPI.

In restaurants, KPIs usually fall into five groups: sales, labour, cost of goods, guest experience and profitability. Common examples include labour cost %, COGS % and average transaction value. Operators review each one on its own cadence, from daily labour checks to monthly margin reviews.

For the full list of restaurant KPIs, how to calculate each one, and what “good” looks like, see our guide: Restaurant KPIs: the metrics that actually matter.

Related terms: Cost of Goods Sold (COGS) · Actual vs. Theoretical Usage · Average Transaction Value