Running a Quick Service Restaurant (QSR) franchise requires more than just great food and excellent service. To ensure long-term success, franchisees must monitor key performance metrics (KPIs) to track operational efficiency, financial performance, and customer satisfaction. This article explores the essential KPIs every QSR franchisee should track, with detailed steps to measure and improve them.

1. Sales Metrics

 

A. Total Sales

Total sales indicate the overall revenue generated by your QSR. This metric is a clear indicator of business performance.

 

Steps to Measure:

1. Use a point-of-sale (POS) system like Foodics to track daily, weekly, and monthly sales.
2. Compare sales across different time periods to identify trends.

 

How to Improve:

• Implement upselling techniques.
• Introduce seasonal promotions to boost sales during slow periods.

 

B. Same-Store Sales Growth (SSSG)

SSSG measures the performance of existing outlets by comparing current sales to previous periods.

 

Steps to Measure:

1. Calculate using this formula:

   (Current Period Sales – Previous Period Sales) / Previous Period Sales x 100%.

2. Use analytics platforms like Geidea POS for automated reports.

 

How to Improve:

• Focus on customer retention through loyalty programs.
• Introduce new menu items to attract repeat customers.

 

Statistics: According to Statista, the global QSR market is expected to grow by 6% annually, emphasizing the importance of tracking sales growth.

 

2. Customer Metrics

A. Customer Satisfaction Score (CSAT)

CSAT measures how satisfied customers are with their experience.

 

 

Steps to Measure:

1. Distribute surveys via email or at checkout.
2. Use a 1-5 rating scale, with 5 being “very satisfied.”

 

How to Improve:

• Train staff to improve service quality.
• Address common complaints promptly.

 

B. Net Promoter Score (NPS)

NPS gauges customer loyalty by asking how likely they are to recommend your QSR.

 

Steps to Measure:

1. Ask customers to rate their likelihood to recommend on a scale from 0-10.
2. Calculate NPS using the formula:

   % Promoters – % Detractors.

 

How to Improve:

• Engage with detractors to resolve issues.
• Reward loyal customers with exclusive perks.

 

Real-World Example: McDonald’s UAE improved its NPS by implementing real-time feedback tools.

 

3. Operational Metrics

A. Speed of Service

Fast service is critical for QSR success.

 

Steps to Measure:

1. Use timers at each service station.
2. Track average order preparation and delivery times.

 

How to Improve:

• Streamline kitchen workflows.
• Invest in automated kitchen equipment.

 

B. Order Accuracy

Order accuracy impacts customer satisfaction and operational efficiency.

 

Steps to Measure:

1. Track complaints related to incorrect orders.
2. Conduct regular quality checks.

 

How to Improve:

• Implement order verification steps.
• Use digital solutions like CookDocs.

 

Statistics: A study by QSR Magazine found that 83% of customers rank order accuracy as their top priority.

 

4. Financial Metrics

A. Food Cost Percentage

This metric tracks the cost of ingredients as a percentage of revenue.

 

Steps to Measure:

1. Calculate using this formula:

   (Cost of Ingredients / Total Revenue) x 100%.

2. Use inventory management tools like Foodics Inventory to track costs.

 

How to Improve:

• Negotiate bulk discounts with suppliers.
• Reduce waste through better inventory planning.

 

B. Labor Cost Percentage

Labor costs are a significant expense for QSRs.

 

Steps to Measure:

1. Calculate using this formula:

   (Total Labor Costs / Total Revenue) x 100%.

2. Monitor trends using payroll systems integrated with your POS.

 

How to Improve:

• Cross-train staff to increase flexibility.
• Schedule shifts based on sales forecasts.

 

Statistics: According to National Restaurant Association, labor costs typically range between 25% and 35% of revenue.

 

5. Marketing Metrics

A. Customer Acquisition Cost (CAC)

CAC measures the cost of acquiring a new customer.

 

Steps to Measure:

1. Calculate using this formula:

   (Total Marketing Spend / Number of New Customers).

2. Track digital ad performance using platforms like Google Ads.

 

How to Improve:

• Focus on organic marketing through social media.
• Optimize ad targeting to reduce unnecessary spending.

 

B. Return on Marketing Investment (ROMI)

ROMI evaluates the revenue generated from marketing efforts.

 

Steps to Measure:

1. Use this formula:

   (Revenue from Marketing – Marketing Costs) / Marketing Costs x 100%.

2. Use analytics tools like Google Analytics to track results.

 

How to Improve:

• A/B test campaigns to identify effective strategies.
• Increase focus on high-performing channels.

 

Real-World Example: Kcal in the UAE reduced its CAC by leveraging influencer marketing.

 

6. Employee Metrics

 

A. Employee Turnover Rate

High turnover can disrupt operations and increase costs.

 

Steps to Measure:

1. Calculate using this formula:

   (Number of Employees Who Left / Average Number of Employees) x 100%.

2. Track trends using HR management software.

 

How to Improve:

• Offer competitive salaries and benefits.
• Create a positive work environment.

 

B. Training Effectiveness

Effective training ensures staff can deliver excellent service.

 

Steps to Measure:

1. Use post-training assessments.
2. Monitor employee performance metrics after training.

 

How to Improve:

• Use platforms like CookDocs for structured training.
• Gather feedback to improve training programs.

 

Statistics: The average turnover rate in QSRs exceeds 100%, as per QSR Magazine.

 

7. Digital Metrics

 

A. Online Order Conversion Rate

This metric tracks the percentage of website visitors who place orders.

 

Steps to Measure:

1. Use analytics tools to monitor conversion rates.
2. Track performance across desktop and mobile platforms.

 

How to Improve:

• Simplify the online ordering process.
• Offer exclusive discounts for online orders.

 

B. Social Media Engagement

Social media plays a crucial role in brand visibility and customer interaction.

 

Steps to Measure:

1. Track likes, comments, shares, and follower growth.
2. Use tools like Hootsuite for insights.

 

How to Improve:

• Post engaging content regularly.
• Run interactive campaigns and polls.

 

Real-World Example: Shawarmer in Saudi Arabia increased online orders by 35% by optimizing its social media strategy.

 

Final Thoughts

Managing franchises be challenging, but software solutions like CookDocs make it seamless. Designed by experienced restaurant operators, CookDocs is the ultimate tool to streamline operations and ensure consistency across your entire chain without having to deal with greasy paperwork. 

With robust features such as checklist management, temperature monitoring, organized document storage, automated training programs, and label management, CookDocs empowers your team to maintain top performance—even when you’re not onsite.

Tailored for multi-location restaurants and chains, CookDocs simplifies onboarding, enhances compliance, and ensures every location operates to your high standards. Learn more or try CookDocs for free today!

 

 

 

 

 

 

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