What is a KPI?
KPI (key performance indicator) is a simple number that shows how your restaurant is doing, like sales, labor %, or food cost %. It helps you see if a location is on track or needs attention.
Simple KPIs for Multiple Restaurant Locations
Overview
Running one restaurant is hard. Running more than one can feel messy and confusing. Each location has different staff, traffic, and problems. If you don't compare them in a clear way, you can miss where money is being lost.
Most owners already have a lot of data from the POS and other tools. The problem is that these reports are often long and complicated. You don't need 20 different charts. You need a few simple numbers that quickly show which locations are doing well and which ones need attention.
This article will show you a short list of basic KPIs for multiple restaurant locations. We will focus on three main numbers - sales, labor %, and food cost %.
How to Set Up Simple KPI Tracking Across Stores
Before you can compare performance between locations, you need a basic system for tracking the same numbers in the same way. If each store reports differently, your comparisons will be wrong or confusing.
First, use the same report format for every location. Decide what you want to see on one page - sales, labor %, food cost %, guest count - and make that the standard. Every manager should fill out the same daily and weekly reports. This can be a simple spreadsheet, a PDF, or a report from your POS, as long as it looks the same for each store.
Second, make sure everyone uses the same definitions. For example
- "Sales" should either mean gross sales or net sales, not a mix.
- "Labor %" should always be calculated as total labor cost / total sales.
- "Food cost %" should always be cost of food used . food sales.
Write these definitions down and share them with all managers so there is no guessing.
Third, pick a clear review rhythm. For example-
1. Daily - quick check of sales, labor %, and any major issues.
2. Weekly - deeper look at trends and side-by-side comparison of all locations.
3. Monthly - bigger picture review and planning.
Finally, keep the process simple. One page per location and one summary page that shows all stores together is often enough. When the setup is clear and easy, managers are more likely to send reports on time, and you are more likely to use the numbers to make decisions.
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Total Sales and Sales per Guest
The first and simplest KPI for multiple restaurant locations is sales. Start with total sales per day and per week for each store. This tells you which locations bring in the most money overall. But total sales alone can be misleading. A mall store with heavy foot traffic will almost always sell more than a small neighborhood store. That's why you also need sales per guest.
Sales per guest (often called average check) shows how much, on average, each guest spends.
The simple formula is -
Sales per guest = Total sales / Number of guests
For example, if a location did $4,000 in sales with 200 guests, sales per guest is $20. If another did $3,000 with 120 guests, sales per guest is $25. The second store has fewer guests, but each guest spends more.
Use these two numbers together -
- Total sales shows which store brings in the most revenue.
- Sales per guest shows which store is better at selling to each person who walks in.
When you compare locations, look for patterns like -
- High total sales but low sales per guest (busy but not selling add-ons or higher-margin items).
- Lower total sales but high sales per guest (good upselling, maybe needs more traffic).
You can review these numbers daily and weekly. Ask simple questions -
- Did sales drop or rise compared to last week?
- Did sales per guest change after a menu update or promo?
By tracking total sales and sales per guest side by side, you get a clear, quick view of how each location is really performing.
Labor Cost %
Labor is one of the biggest costs in any restaurant, so it needs close tracking across all locations. The best way to compare labor between stores is with a simple number - labor cost %.
The basic formula is-
Labor cost % = Total labor cost / Total sales x 100
Total labor cost should include hourly wages, salaries, overtime, and payroll taxes. Some owners also include benefits. The key is to keep it the same for every location so you are comparing fairly.
For example, if a store has $3,000 in sales and $900 in labor cost, labor cost % is 30%. If another store has $3,000 in sales and $1,200 in labor cost, labor cost % is 40%. Both locations made the same sales, but one used much more labor to do it.
When you compare labor cost % across locations, look at -
1. By day - Are weekends or certain weekdays always high in one store?
2. By shift - Is the lunch shift overstaffed? Is dinner understaffed?
3. Over time - Is labor % trending up or down at each location?
You do not need complex tools to start. A simple report with sales, labor cost, and labor % by day is enough. You can also break out front-of-house and back-of-house labor if you want more detail, as long as you use the same method for all stores.
When you see one location with much higher labor % than the others, it is a sign to dig in. Maybe the schedule has too many people on slow days. Maybe there is too much overtime. Maybe sales dropped, but staffing stayed the same. Labor cost % helps you spot these issues early so you can adjust schedules, cross-train staff, and protect your margins.
Food Cost % and Basic Waste Tracking
Food cost is the other big cost you must compare across locations. A small difference in food cost % can make a big difference in profit, especially when you have more than one store.
The basic formula is -
Food cost % = Cost of food used / Food sales x 100
"Cost of food used" means the value of food that actually left storage and was used during a time period. A simple way to get this for a week is -
Starting inventory + Purchases - Ending inventory
Then divide that number by your food sales for the same week.
For example, if a location used $7,000 in food and had $20,000 in food sales, food cost % is 35%. If another store used $8,000 in food for the same $20,000 in sales, food cost % is 40%. That second store is spending more to make the same revenue.
To understand why food cost is high, add basic waste tracking -
- Log items that are thrown away (spoiled product, burnt food, wrong orders).
- Track voids and comps related to kitchen mistakes.
- Note over-portioning issues (plates coming back half-eaten, oversized portions).
You do not need a complex system to start. A simple waste sheet or log is enough, as long as cooks and managers actually use it. Review this waste log along with food cost % each week.
When you compare locations, look for -
- Higher food cost % than other stores
- Frequent waste for the same reasons (overcooked, wrong item, spoilage)
High food cost % plus a lot of waste in the log usually points to problems with portion control, prep levels, or training. Tracking food cost % and waste together helps you find these weak spots and fix them before they become normal.
A Simple Scorecard
Once you track sales, labor %, and food cost % by location, the next step is to put them all on one simple scorecard. The goal is to see how every store is doing at a glance, without clicking through many reports.
Start with a basic layout. Across the top, list your locations- Store A, Store B, Store C, and so on. Down the left side, list your key numbers -
- Total weekly sales
- Sales per guest
- Labor cost %
- Food cost %
You can also add guest count if you track it. This gives you a clean grid where each store has the same set of numbers.
Next, add simple color flags to make the scorecard easy to read. For example -
- Green = on target
- Yellow = a little off target
- Red = needs attention
You can set basic target ranges, like labor cost % between 25-32% or food cost % between 28-35%, based on your concept. Any number outside your target range gets a yellow or red mark.
When you look at the scorecard, your eye should go straight to the red or yellow spots. Maybe one store has good sales but high labor %. Another has okay labor % but very high food cost %. This view helps you decide where to focus your time.
You can keep one scorecard per week and compare it week by week. Over time, you will see which locations are steady and which ones swing up and down. The scorecard does not need to be fancy. Even a simple spreadsheet works. What matters is that it is updated regularly, easy to read, and used in your weekly review so you can make clear decisions.
How Often to Review and What to Ask
KPIs only help if you look at them regularly. Many owners collect numbers but do not review them in a steady way. Setting a simple review routine makes it easier to spot problems early and keep every location on track.
A basic rhythm could look like this -
Daily (10-15 minutes per store)
- Check total sales and sales per guest.
- Look at labor cost % for each shift, if possible.
- Scan for any big changes from the same day last week.
Questions to ask -
- Did sales drop or jump for any clear reason (weather, event, promo)?
- Is labor % way higher than expected on a slow day?
- Did any major waste or mistake get reported?
Weekly (30-60 minutes for all locations)
This is where your scorecard is most useful.
- Review sales, sales per guest, labor %, and food cost % side by side.
- Look for stores that are off compared to others or to your targets.
Questions to ask managers -
- "Why is your labor % higher than the other locations this week?"
- "What changed in your staffing, menu, or traffic?"
- "Why did food cost % spike? Any issues with waste or portion size?"
- "What is one thing you will adjust next week?"
Monthly (bigger picture)
- Look at trends over 48 weeks instead of just one week.
- See which locations are improving and which are stuck.
Questions to ask yourself -
- "Which store needs coaching or support?"
- "Do we need to adjust targets or staffing plans?"
Keep the review simple and repeat the same steps each time. When everyone knows you will look at these KPIs on a schedule, managers pay more attention to the numbers and take ownership of their results.
Turning KPI Insights into Action
Looking at KPIs is only useful if you do something with them. Once you see how each location is performing on sales, labor %, and food cost %, the next step is to turn those numbers into clear actions.
Start by setting simple targets for every store. For example-
1. Labor cost % - 25 - 32%
2. Food cost % - 28 - 35%
3. Sales per guest - a clear dollar goal for your concept
Share these targets with your managers so they know what "good" looks like.
Next, when a location is off target, pick one or two actions, not ten. For example-
1. High labor % - tighten the schedule on slow days, reduce overlap, cross-train staff.
2. High food cost % - check portion sizes, review waste logs, fix prep levels.
3. Low sales per guest - coach servers on add-ons and upsells, review menu layout.
Use your weekly scorecard review to agree on one small change per store for the coming week. Write it down, then check the numbers again next week to see if it helped. If it did, keep it. If not, try a different move.
Also, use your stronger locations as a benchmark. If one store has lower food cost % with the same menu, ask what they do differently with prep, storage, or training. Turn those good habits into simple standards for every location.
Over time, this cycle - review, decide, act, review again - will make your Multiple Restaurant Locations more consistent and easier to manage.
Make KPI Tracking Easier with Altametrics
If you want a simpler way to track these KPIs across all your locations without chasing spreadsheets, tools like Altametrics can help. Altametrics pulls data from your systems and gives you clear views of sales, labor, and food costs in one place, so you can compare stores quickly and act faster.
You can learn more by clicking "Request a Demo" below.
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Frequently Asked Questions
How do I calculate labor cost %?
Use this formula -
Labor cost % = Total labor cost / Total sales x 100
Total labor cost should include wages, salaries, overtime, and payroll taxes (and benefits if you choose), the same way for every store.
Labor cost % = Total labor cost / Total sales x 100
Total labor cost should include wages, salaries, overtime, and payroll taxes (and benefits if you choose), the same way for every store.
How often should I review my KPIs?
A simple rhythm -
1. Daily - quick look at sales, sales per guest, and labor %
2. Weekly - full scorecard review for all locations
3. Monthly - bigger trend review and planning
Regular review is more important than perfect reports.
1. Daily - quick look at sales, sales per guest, and labor %
2. Weekly - full scorecard review for all locations
3. Monthly - bigger trend review and planning
Regular review is more important than perfect reports.
What are the most important KPIs to track across locations?
For most restaurants, three simple KPIs are enough to start -
- Total sales and sales per guest
- Labor cost %
- Food cost %
These cover revenue and your biggest costs.
- Total sales and sales per guest
- Labor cost %
- Food cost %
These cover revenue and your biggest costs.
What is a scorecard?
A scorecard is a simple one-page view that shows key KPIs for all locations side by side. It makes it easy to spot high labor %, high food cost %, or weak sales without digging through many reports.
