8 Ways to Increase Revenue with Restaurant Analytics

Your cloud-based POS systemYou are equipped with dozens of restaurant insights, data and analytics. Every time an employee enters an order, swipes a credit card or closes a check, they’re creating data. Every Yelp review, Facebook post and retweet on Twitter—and even the weather—have an effect on your bottom line.

Although individual data may not be very useful, they tell a powerful story about your company. What are you doing about that data? 

Learn more about eight metrics you could measure to increase traffic, revenue and customer satisfaction with the restaurant data analysis in your POS.

  1. Increase table turnover
  2. Reduce food loss
  3. You can right-size your staffing requirements
  4. Comps and discounts at a reduced rate
  5. Manage staff turnover
  6. Monitor server performance
  7. Marketing can be improved
  8. Create smarter menus

Help your business prosper in the new era hospitality

Our free guide will walk you through the future-proof restaurant tactics that’ll add flexibility to your business—a key to thriving in the new world of hospitality.

A note on restaurant analytics

Restaurant analytics is the combination of raw data and easy-to use insights that can help you make better business decision. Today, every piece of information—from wait time to tip distribution—can be accurately gathered, measured and presented to owners in a way that’s clear, prompting a real-time response and forward-thinking plans for long-term success. Let’s dive in.

1. Improve table turnover

To serve customers well, and hopefully create repeat business, you’ll need to move the dining experience along at your tables. You must be a good host. restaurant POS systemCustomers can order online and pay at the table. This allows them to enjoy a casual meal and leave satisfied.

Your waitstaff will be able to take orders and pay faster, increasing table turnover, and not having to rush guests who wish to stay a while longer.

2. Reduce food loss

Your restaurant POS will allow you to You can control what inventory is coming into and out of your kitchenThis will help you hold your staff more responsible for how they cook, deliver, or account for every item that is ordered.

Food is your restaurant’s inventory—don’t let careless staff over-pile a plate, under-serve a valued customer, or simply misuse the expected items in a way that hurts both your reputation and the bottom line.

3. You can right-size your staffing requirements

Wouldn’t it be nice to know who your top and lowest performing servers are? Yes, we all have that mix of gut feelings and experience. However, data is essential to back up your decisions. Explore deeper to determine the exact cost of a poor server for your business. 

If you have the same number of waitstaff and kitchen staff throughout the week but only a few nights that warrant additional servers, your restaurant analytics can show you where there are losses and where you might be better utilizing their manpower.

4. Comps and discounts at a reduced rate

You might think that a few percentage points of comps aren’t very much, but it’s just the sort of thing that can shrink your margins. There’s no way 22 birthdays were celebrated at the bar last night. You can easily monitor staff and dishes with restaurant analytics to see exactly what was going on.

5. Manage staff turnover

It is never easy to lose staff members. But it is as simple as Optimizing a floor planModifying how staff members handle specific table sizes can make it easier to resume fully covered and efficient services. Even with a reduced staff, restaurant analytics can be a great way to increase productivity and morale.

6. Monitor server performance

The POS analytics on server performance can be used to improve staff training, identify strong servers, and schedule smarter. 

  • Learn your strengths and your weaknesses.Is there a server that sells 60% of all wine bottles? Find out the secret to their success and pair them with servers with lower bottle numbers to increase their sales.
  • Reduce turnover There are many reasons why turnover happens. You can’t stop it but it can be minimized. You can talk to your lowest performing servers to learn how you can help them improve their job satisfaction.
  • Pair top servers and VIPs. When a reservation for a VIP guest comes in, you can identify your top servers and ensure at least one of them is scheduled and assigned to that guest’s table.

7. Marketing can be improved

One of your most powerful tools for filling seats is strong digital marketing—and when you are able to see the successes and losses of campaigns or tailor them to individual preferences, that makes them even stronger.

Whether it’s a weekly Taco Tuesday special or something more temporary like a Mother’s Day prix fixe menu, tracking a campaign within your POS analytics will let you compare sales data to see if your efforts are bringing in more business or are just a waste of time. If it’s the latter, you can then change your strategy to something more profitable.

And remember, marketing efforts don’t stop when a guest walks in the door. Your POS analytics can be used to delight VIP guests by offering a complimentary glass or dessert. Simple gestures like remembering someone’s name or what dish they enjoy most go a long way too.

8. Create smarter menus

Through Menu insights, you can gain a better grasp on what is or isn’t selling, and how to make your menu more profitable.

If you didn’t have restaurant analytics to look back on, you would probably think your best-selling item is the most profitable—but they may not be accurate. Through your POS data you’ll be able to see which items have customers coming back again and again. Are you selling a lot of grilled chicken sandwiches, but never seeing them again? It’s time to figure out why.

On the other hand, it’s possible that one of your less-popular items has untapped potential. You can use your restaurant analytics to determine if these items generate a higher than average percentage of repeat customers. This item can be highlighted on the menu and trained servers to promote it. Update its name or descriptionThis could allow you to sell more of the dish and create more repeat customers.

While you might not have the ability to predict restaurant success with an 8-ball, there are plenty of data points that can help. restaurant POS systemThere are very few reasons to make unnecessary losses or incur expenses when you have the answers at your fingertips.

How do real restaurants use data analytics?

The best restaurants know how to use analytics to grow their businesses. This is especially true when it comes to restaurants. Locals 8 Restaurant Group, a multi-location restaurant group using Small Biz Sense’s restaurant data analytics to boost profits and become more efficient.

The restaurant POS system will allow you to track everything, from employee performance and costs to menu execution. Need help choosing your restaurant technology? Talk to one of our point-of-sale experts.


Cyndy Lane

Cyndy is business journalist with a focus on entrepreneurship and small business. With over a decade of experience covering the startup and small business landscape, Cyndy has a reputation for being a knowledgeable, insightful and approachable journalist. She has a keen understanding of the challenges and opportunities facing small business owners and is able to explain them in a way that is relatable and actionable for her readers.