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95% of businesses have a hard time with messy data. However, 60% of leaders see its innovation potential. For small restaurant owners, restaurant data analytics can change the game. It turns your plethora of raw data into useful insights. With POS analytics, you get details on sales trends, customer behavior, and how well things are running. This helps you improve performance and make smart choices.
This article will show how restaurant POS reports can help you spot trends and compete with well-funded, big restaurants.
Restaurant data analytics reports are super helpful for understanding how your restaurant is performing and highlighting areas where you can improve.
Highly data-driven businesses have 3X more chances of reporting substantial improvement in decision-making. Using the data from restaurant POS reports, you can spot patterns and trends you might miss from day-to-day operations. Here’s a table showing how using advanced POS data analytics is better than using basic POS data for a small restaurant:
The result: Advanced POS analytics provides deeper insights and more actionable data than basic POS data for better decision-making and operational efficiency.
Restaurant data analytics systems generate several reports to help restaurants run smoothly. Here are six common types:
Sales Summary Report Example for Small Restaurants
This report provides an overview of total sales over a specific period. It includes metrics like:
A sales summary report also helps identify busy periods, assess performance, and make informed decisions about promotions or staffing.
Product-Sold Summary Report Example for Small Restaurants
This report details the performance of individual menu items. Key metrics include:
A product-sold report also helps identify popular and slow-moving items, guiding menu adjustments and inventory planning.
This report tracks all purchases made by customers, including:
A purchase history report helps understand customer buying patterns and can be used for targeted marketing and promotions.
Employee Tracking Report Example for Small Restaurants
This report monitors employee performance and hours worked. Some key metrics are:
An employee tracking report also assists in evaluating employee productivity and scheduling needs.
Inventory Optimization Report Example for Small Restaurants
This report analyzes inventory turnover rates and stock usage. Key metrics include:
An inventory optimization report also helps manage inventory efficiently, reduce waste, and avoid stockouts.
This report provides current stock quantities for each item. Here are some key metrics:
A stock levels report also ensures that inventory is well-managed and helps avoid overstocking and understocking.
POS data analytics provide actionable insights to enhance various aspects of restaurant operations, from inventory management to customer engagement.
Restaurant Inventory Management
34% of businesses struggle with unavailable products. More specifically, smaller restaurants often have limited storage space and buying power. In such cases, restaurant data analytics can help manage inventory. After all, it can the following key metrics:
With this information, you can adjust orders to prevent stockouts. Conversely, if an item is consistently overstocked, you might reduce future orders to avoid excess inventory.
Suppose you find out that a specific dish generates the most revenue during dinner hours. Then, you can promote it more to improve sales. You can also consider creating similar dishes. Sales performance reports provide metrics like:
This is more helpful in a small restaurant, where managing a stable cash flow can be difficult due to fluctuating sales and expenses.
Only if you knew that certain side dish your customers frequently ordered, you could focus your effort to capitalize on that trend. So, restaurant POS analytics eases tracking the following metrics:
With such precise insights, you can highlight frequently ordered side dishes in promotions or suggest them as add-ons. Moreover, you can tailor your marketing strategies, such as sending discounts on popular items to repeat customers.
When you’re aware of your objectives and KPIs, you can easily measure success. Here are some key metrics that can serve as KPIs:
Suppose your goal is to increase the average check size. Then, you might set a KPI to track the average order value to analyze how promotions or upselling strategies impact this metric.
33% of industry professionals say that the right data collection technologies are important to better understand customers. Here are some key metrics to track:
Context helps in interpreting data accurately. For example, if sales of a specific item drop, you should consider factors like seasonal changes or recent menu updates. Then, you can make more informed decisions, such as adjusting marketing strategies or revising the menu.
85% of restaurant owners believe in the potential of AI to impact the industry in the next few years. AI and machine learning can add more features to restaurant data analytics systems. For example, if your POS tool uses machine learning algorithms, it can predict which menu items will be popular during upcoming holidays. Then, you can prepare in advance.
Your restaurant might have a small team size. Poor employee scheduling can lead to overworking and burnout. However, with POS data, you can track peak hours and busy periods to optimize staff schedules. Metrics such as sales per hour and employee performance can guide staffing decisions. For instance, if data shows high sales volume during lunch hours, you can schedule more staff to maintain service quality.
Use the insights gained from restaurant POS analytics to develop strategies. Data-driven strategies help align your business operations with customer preferences and market trends. For example, if customer data reveals a high demand for vegetarian options, you might create new vegetarian dishes or run promotions to attract health-conscious diners.
Look at different numbers and patterns to see what’s going on in your restaurant. Here’s how:
When you check out your sales data over different periods to spot trends, you may come across certain patterns. For example, some dishes sell much better during holidays or seasons. Then, you can plan promotions or change your menu to make the most of this trend.
Conversely, if you notice a particular entrée does well in the summer, it’s a good idea to highlight it more or run special deals to boost sales.
Knowing what your customers are buying to figure out what they like helps. Suppose you see a lot of people ordering vegan dishes. Then, you might add more vegan options to your menu.
Moreover, you can then personalize your loyalty programs with such precise information. For example, you can send them special offers based on their favorite items.
Look at sales data to determine peak business hours and days. For example, if restaurant POS reports show a sales spike during weekend brunch hours, you can tweak your staff schedules and menu to handle this busy time better.
Similarly, if some menu items are more popular at certain times of the day, adjust your menu or create specials to increase sales during quieter periods. This way, you keep things running smoothly and make the most of every opportunity.
Here’s an overview of popular POS analytics tools and their functions:
Selecting the right POS analytics tool for a small restaurant involves evaluating several key traits that align with your needs. Here’s how:
Small restaurants often have a tight budget. So, they need a tool that fits their budget while covering essential functions. So, focus on features that will benefit you most, such as inventory management, sales tracking, and customer insights.
Ensure the restaurant data analytics tool integrates perfectly with your existing POS system. Compatibility is crucial because it allows for smooth data transfer and accurate reporting. This will save you time and reduce errors.
You or your team might not be tech experts. So, make sure you choose a tool with an intuitive interface. Look for features like easy-to-read dashboards and simple report generation.
If your restaurant has a limited budget, make sure you select a restaurant POS analytics tool that offers good value for money. Some tools have subscription-based pricing or offer tiered plans based on features. Choose one that fits your financial constraints without compromising on essential functionalities.
For a small restaurant, having quick access to help when needed is important. Look for a tool that provides reliable customer support and training resources, such as phone support, online chat, or tutorials.
Even if you’re a small restaurant now, choose a tool that can grow with you. Opt for a solution that can handle an increase in data volume and offer advanced features if you expand your operations in the future.
Focus on tools that provide essential features such as:
Check out user reviews and ask other small restaurant owners for recommendations. Their experiences can give you a good idea of how reliable and effective the tool is.
POS analytics are really important for figuring out sales trends, customer behavior, and inventory management. Ultimately, it can help your business grow because it makes decision-making and running every aspect of a small restaurant more efficient.
OneHubPOS empowers you with feature-rich restaurant data analytics that fit right into your POS system. It gives you useful insights to help your business succeed. Using OneHubPOS can make a big difference in your restaurant's performance and overall success. Ready to transform your restaurant with powerful data insights? Book a call with OneHubPOS today.
POS analytics involves analyzing data collected from a restaurant's Point of Sale system to gain insights into sales, inventory, and customer behavior.
It helps by optimizing inventory, improving sales performance, understanding customer preferences, and streamlining operations.
OneHubPOS is ideal for POS analytics, managing multiple stores with features like inventory control, employee scheduling, and detailed reporting. Access performance insights, sales data, and more—all starting at $1.
Select a tool, integrate it with your POS system, train your staff, and use the data to inform decisions.
Yes, advanced POS analytics can identify patterns and forecast trends based on historical data.
Diksha, a seasoned content marketer, brings hands-on experience in website management, social media marketing, and branding. Her expertise drives efffective and results-driven digital strategies.
