“If you can not measure it, you can not manage it.” The axiom is now a staple catch-phrase for many companies because, for the most part, it is true. Without data, it is hard to understand what is happening in […]
“If you can not measure it, you can not manage it.” The axiom is now a staple catch-phrase for many companies because, for the most part, it is true. Without data, it is hard to understand what is happening in your organization. It becomes hard to make effective choices, and understand if these choices made a difference.
Enter your point of sale system. Your POS system should supply you with a selection of reporting features that can allow you to make smarter, more informed business decisions.
Let us take a look at a number of the vital POS reports you will need to run a thriving small business.
Sales reports are the most frequent reports which contain essential details about sales. The earnings data available to you depends upon your POS provider, but you should be able to monitor sales by the following standards:
- Time period. This measurement is useful for spotting trends like peak hours, comparing sales year-over-year, or the potency of a unique promotion.
- The Amount of guests. This evaluation allows you to know how many guests dine with you and their average spend amount.
- Table turn time. Measuring table turn times gives you insight into how long it requires a table of visitors to dine from begin to finish. This dimension can help you determine the sustainability of each chair in your restaurant.
- Revenue by server lets you understand what employees are the best performers and which ones might need a little additional training.
A trusted restaurant POS system should provide you the ability to monitor sales metrics such as these to help you better understand how earnings are piling up across your company.
Product Mix Reports
To get a more in-depth view of restaurant sales, your POS system should offer product mix reports. These reports show you sales by item, category, or section. Know what drinks or dishes are your top-selling things and what ones are not cutting the mustard.
When you consider the cost of ingredients for menu items, this prompts you to make smarter choices. As an example, you might opt to cut certain popular menu items to save money and increase your bottom line.
Just as significant as sales reports are stock reports. Without inventory, you have nothing to sell to clients. Telling a patron you are out of a specific dish or ingredient to mix the perfect cocktail does not make a wonderful first impression. Nor is it a fantastic strategy for long-term achievement. Inventory reports will let you keep track of your usage of components to better plan for future earnings.
In addition, without inventory controls in place, you may not notice if a worker is helping themselves to a steak dinner and a bottle of wine on your own dime.
Ensure Your inventory reports provide the following:
- Inventory valuation so that you know just how much of your cash flow you’ve tied up in stock and what stock you have on-hand.
- A daily new sheet which includes par amounts, quantities of merchandise on-hand, and low stock items so you can easily reorder.
Labor and Employee Reports
Besides sales and stock, employee labor costs are just another top pain point for many small businesses.
Labor reports can show you several insights to how workers are doing and how much it costs you to maintain them on board. Many POS systems include integrations for third party software solutions that allow business owners to control employee scheduling jobs and payroll programs.
While worker reports won’t provide you with the answer, they will get you to begin asking questions. Is there a reason why two workers working the same shift have vastly different sales numbers? Is one better in upselling drink specials and appetizers than the other? Does one worker not turn tables as quickly as another?
Employees are one of the most important assets, and that is why it’s essential to keep tabs on this area of your operation.
Exception reporting is a must-have in almost any restaurant POS reports suite that will assist you keep tabs on workers. These exclusion reports show you all of the voids, refunds, and discounts for a particular time by staff members. This information is helpful in discovering a few things.
- If you have an employee inadequately trained on the point of sale applications
- If you have an employee that is not familiar with your reduction policy
- If you have a crafty employee attempting to steal
All this data makes it possible to determine areas of your business where you will need to make improvements. As an example, a more comprehensive employee training procedure or doing more due diligence when hiring workers to attempt and vet out the bad apples.
X Reviews and Z Reports
Whether you have a full size restaurant or a quick-service (fast-casual) restaurant, X’s and Z’s are a part of your daily procedures. At the end of every shift, the host, bartender, or cashier will publish a shift X or report accounts of their daily sales. These reports typically have a wealth of information for example:
- Individual total earnings for food and drink, Together with a cumulative total
- the Amount of guests served throughout the shift
- Money tips and credit card gratuities owed to the worker
- Coupons, promotions, or discounts applied
While X reports provide you shift details or present, real-time register info, a Z report is your end-of-day report you’ll use for accounting purposes. If you have ever heard the expression”Z out,” it means to publish the end-of-day report from a cash register. A Z report for a POS system is the same thing, except with much more information than its predecessor.
Not only will you be thankful for the information on your ordinary Z reports, but so will your accountant. Because your POS software is the backbone of your business, it is vital that the program can create accounting reports to pass on to your bookkeeper. When tax season comes around, having everything in one place will be a large time-saver.
Payment Reports and Gift Card Reporting
Understanding how clients pay is another vital piece of data that does not just help your accountant will appreciate, but also the supervisor on duty.
Your POS reports must itemize transactions by tender type such as:
- Present card
- Credit card (Visa, Mastercard, Discover, American Express)
- Debit card
This information provides you insight into just how much money you need to have on-hand and if anybody made a purchase using a gift card, so your obligations reports are accurate. Additionally, the breakdown of credit card payments by card type will let you know just how much money you can expect on your bank account from the merchant processor.
CRM and Loyalty Programs
Customer relationship management (CRM) is the technology that is used to manage your relationships with your clients and frequently connected to a customer loyalty program. Assuming that your POS system has a CRM system, you will be able to run reports that show the following:
- A client’s average check price
- The last time they dined in the restaurant
- Their most frequently ordered items
- Special occasions like birthdays and anniversaries
These reports can help you make future marketing offers that provide additional positive returns. By way of instance, understanding what customers are loyal and what they prefer to eat can make it possible for you to create powerfully successful offers.
Marketing reports give you a deeper understanding of customers’ purchasing behaviour, so you get the most out of your restaurant POS system. Make the most of this information by engaging your clients according to their interests.
The Bottom Line
Needless to say, there are scores of additional POS reports available you could use to measure and manage your restaurant. However, it is not the quantity of reports your point of sale system can create, but instead the quality of these reports. Can they give you the information you will need to run a successful company?
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