The role of key performance indicators in improving restaurant business

Abstract

This paper examines the role of Key Performance Indicators (KPIs) in improving restaurant business operations, with a focus on both financial and non-financial indicators. The aim is to highlight the importance of implementing KPI systems as a tool for performance monitoring, managerial decision-making, and enhancing operational efficiency and service quality. The methodological approach combines a review of relevant literature and empirical research conducted through a survey. The results indicate that most hospitality establishments are familiar with the KPI concept but primarily apply it in a financial context, while the use of non-financial indicators remains limited. The most commonly used KPIs include revenue, labor costs, and food costs. Identified challenges in KPI implementation include insufficient staff training, employee resistance, and lack of digital support. The study emphasizes the need for systematic integration of KPI models into restaurant management through education, digital transformation, and the development of a data-driven organizational culture to improve efficiency, transparency, and competitiveness in the restaurant industry.