During the month of March 2020, we posted results of the Mirus Index on social media to keep restaurant operators informed on what is happening at an industry level. This article is intended to be a diary of observations related to how COVID-19 is changing the restaurant world from our perspective. We will update this every few days during this pandemic to keep multi-unit restaurant operators informed of the bigger picture.
According to the Mirus Index, January closed with the best sales and traffic performance since 2015. Traffic, in particular, has been an industry problem for most of the last 5 years.
Mirus is happy to report that our clients, as measured by the Mirus Index each day, are outperforming both the industry averages, and the government's numbers in the 3rd quarter.
2019 is a pretty good year, so far. But, according to Black Box Intelligence's latest report on sales and traffic, both were negative for July (-1% and -4%, respectively). Both were also negative, albeit marginally, in June (-0.01% and -3.1%, respectively).
It seems like, since forever, that Product Mix or PMIX as it’s known, has been a staple in the restaurant arsenal for evaluating what’s selling and menu performance. And while, PMIX does deliver some interesting information like how many of x, y or z did I sell over a day, week, month, etc., it lacks the details needed to see shifts in demand, which makes it a poor choice to use when you’re wanting to make critical decisions about menu changes. For now, let’s look closer at what PMIX can deliver.
December continues to look like an important month for the restaurant industry. After years of poor or lackluster results overall, the first half of December has delivered positive same store sales and traffic, according to the Mirus Index.
Our clients love us and we love them right back! We're constantly amazed by their ingenuity and accomplishments. Their ideas and requests are what keep us on the leading edge of restaurant business solutions. Periodically we like to shine the light on our clients, their accomplishments and what they're doing to increase their restaurant profit margin.
Measuring success or failure of a system that improves decision making is challenging in many respects. But, the Same Store Sales (SSS) metric can be useful, especially when applied to a long period of time, and across thousands of restaurants. SSS is caluclated as a percentage change from last year to this year, and only uses locations that are open for both years.
Successful restaurateurs need to have extensive KPIs and they must be able to quantify everything. Data scrutiny and analysis is an ongoing process. Restaurant CEO's need to have their restaurant information distributed and analyzed by different personnel that will empower their businesses to increase revenue and improve customer service. However, operators can be misled by information received solely from their POS systems (sales, reservations) or BOH systems (inventory, food costing, labor scheduling). They need to be able to get a look at the bigger picture.
Nowadays, the CFO in the restaurant industry performs multiple functions. In addition to finance, and regulating costs, the CFO is in charge of restaurant development and making tactical decisions ranging from marketing initiatives to growth plans. The modern day CFO has to have the ability to forecast market fluctuations, analyze restaurant benchmarks against peers, and have some knowledge of IT systems and IT investments, ensuring that there’s a return on these investments.
They must outline metrics so that restaurant data can be interpreted in real time to set business strategy and make intelligent decisions.
Are your promos being used to commit fraud?
The majority of restaurants have utilized some type of promotion in order to build revenue, introduce a new product, drive traffic or reward loyal customers. In short, your restaurant business is providing a coupon offer in return for more / specific customer interaction. This give and take process generally works well. However, while it may be increasing traffic and driving sales, your business may be losing hundreds, heck even thousands of dollars due to fraud and you may not even know it.