How to Boost Your Profits by Looking at Your POS Reports
Technology plays a vital role in bar and restaurant management. No matter the size of your business, technology can give you benefits that will help you improve your profits and brand’s relevance. One of the valuable business tools that has evolved through technology is the POS system.
Also known as Point of Sales, POS systems have strong impacts on your business operations, customer satisfaction, revenue growth, and profitability. POS systems are smart investments and a bit costly to replace. So to maximize this investment, you must learn to extract its hidden and valuable data. These data points or key performance indicators (KPIs) will help you to improve your management skills. Tracking and measuring your KPIs will allow you to monitor essential factors, including your team’s productivity, performance, and profitability. Also, these numbers will help you form business decisions to improve these factors accordingly.
In short, KPIs will give you a better understanding of your bar or restaurant’s performance.
Here are some important KPIs you must take note of.
Guest Check Average
Assigning stations to your staff can be challenging since they have different strengths and weaknesses. Also, some of them want to work in a specific station because that’s where they feel comfortable. It’s easier to give them the station they want, but this won’t really benefit your business. As a team leader, you’re the one who should run your team. And remember that your staff won’t grow if they stay in their comfort zone.
Thankfully, your POS can make the staff placement easier. Through data, you can rank your team from the highest guest check average to the lowest. This way, you’ll be able to assign stations based on their performances.You can also use this list to improve their skills. Utilizing this kind of KPI will tell you if your staff needs additional training programs or not.
Comps and Void Reports
Mistakes and accidents happen. Unfortunately, they also cost money, especially in the food and beverage business. When looking at your comp and void reports, ask yourself quality questions to get the real value. What kinds of mistakes are always happening? Can you identify a certain pattern or trend? Is there a specific employee who’s always involved? Or maybe there are specific corners in your establishment that are simply prone to mistakes? Mining deeper into your comps and void report will give you a clearer picture of your business. When you know the root cause of common mistakes that affect your profits, you can formulate better solutions.
Sales by the hour
Bars and restaurants have their own peak hours. Some are crowded during lunch while others don’t have customers until the evening. Looking at the sales by the hour data on your POS can help you schedule smarter. For example, if your restaurant’s dinner rush doesn’t occur until 6 in the evening, then it’s not wise to bring in extra employees.By learning how to schedule smartly and effectively, you can boost your profits.
Customer database
POS systems can gather your customers’ information for marketing purposes. Their names, emails, and birthdays are the typical information these systems usually collect. Some system can even gather the number of times a guest has visited a restaurant or bar.
You can use this data to keep your loyal customers and attract new ones. For example, you can give loyalty cards or special discounts to your avid guests. Or, you can collect their emails and use email marketing campaigns to market directly to your customers. Technology truly changed the business and management field. POS systems and bar management software are making things easier for managers and owners. To be able to compete and be successful, bars and restaurants should adapt to technology. Resisting to innovation can make any business crumble, even the biggest ones.
