The Keys to Measuring Success
Why are Metrics in Food Important?
The world of restaurants and takeaways is highly dynamic and competitive. Gastronomic metrics are crucial for measuring the success of your takeaway, identifying opportunities, and developing improvement strategies. In this article, we will shed light on the key gastronomic metrics for takeaways and explain why they are of paramount importance.
Average Revenue per Customer (ARPU)
Calculation:
Average Revenue Per User (ARPU) is the sum of revenues generated on average from each customer.
Significance:
ARPU indicates how profitable your customers are. A high ARPU can signal loyal customers and effective upselling strategies.
Average Order Value (AOV)
Calculation:
Average Order Value (AOV) is the average value of an order.
Significance:
A higher AOV means customers are spending more. This is a sign of successful cross-selling and upselling.
Customer Retention and Reordering
Calculation:
Customer retention is often measured in the form of repeat purchases or the number of regular customers. Customer reordering measures how many inactive customers reorder.
Significance:
High customer retention and successful customer reordering are crucial for ensuring long-term success.
Delivery Times and Speed
Calculation:
Average delivery time is measured by recording the time between order acceptance and delivery.
Significance:
Fast deliveries are essential to satisfy customers and prevent refunds.
Cancellations and Refunds
Calculation:
The number of canceled orders and refunded deliveries.
Significance:
Cancellations and refunds can indicate issues with order accuracy or food quality.
Effective Cost Control
Calculation:
Cost control involves monitoring variable and fixed costs to ensure they are in proportion to revenue.
Significance:
Effective cost control is vital to ensure profitability and prevent unnecessary expenses.
Portals vs. Own Web Shop: More Revenue, Fewer Commissions
The decision between using delivery portals and your own web shop can significantly impact your profitability. Having your own system, like OrderYOYO – with commission as low as 6% – provides the opportunity to turn portal customers into your regulars. This means you generate more revenue in your own website and pay fewer commissions to the portals. For example, with OrderYOYO, the higher your revenue, the lower your commission rate, saving you around 8%.
Assuming you generate monthly revenue of £/€10,000 through the portals. With a 14% commission, you pay £/€1,400 to the portals each month. Over time, this amount can accumulate significantly and reduce your profit. With your own website and app from OrderYOYO, you retain more of your revenue and can invest in long-term customer retention.
(*Please note that this is specific to the system mentioned in this article, and different conditions may apply with other providers.)
Conclusion: Success Factors in the World of Takeaways
The world of takeaways is challenging but full of opportunities. These metrics play a crucial role in measuring, increasing, and optimising business success. The revenue per customer, average order value, customer retention and regaining, delivery times, cancellations and returns, and cost control are key metrics that should be continuously monitored. By understanding and improving these metrics strategically, you can boost the profitability of your takeaway and retain customers for the long term.
