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The process of restaurant monitoring involves the gathering of data about the performance of the entire restaurant. This includes the individual performance of employees and other factors. The system collects the data necessary to find the causes of the failures of the restaurant. This helps with planning for further development of the information base of your restaurant.

All the collected indicators of the restaurant are saved and available for further analysis. For each of the indicators, relevant analytical tools are provided: diagrams, alarms, and reports. Bookkeeping is a valuable tool that can also be used in this process. Check out America's Best Bookkeepers

If the reviews of your restaurant are not more than 100 per week, you do not need a monitoring system. If the feedback is much larger, or important for you to know, you need a monitoring system.

Monitoring the key performances of a restaurant can be difficult. Also, monitoring the trends and preferences of your target audience is important.

Monitoring and Key Performance Indicators for Restaurants

  1. Staff management

Salary expenses (%) – expenses for wages, as a percentage of sales.

Total labor cost (%) – the amount of salary costs and other costs that cover insurance, retirement, pension, and other taxes included in your payments as a percentage of sales.

Labor time (hour) – This indicator is especially useful for comparing sales with the productivity of staff. Check out America's Best Bookkeepers

The function of labor load (for the time-based form of payment for personnel)-Executives usually charge a surcharge to the service staff for the amount of wages.

The average duration of employment- A way to test your progress in retaining staff is to add the total number of weeks that all your people worked for you and divide it by the total number of staff.

Average hourly rate – Divide the total wage by the total number of hours worked by your staff.

  1. Production management

The cost of food (%) – The cost of food, expressed as a percentage of sales of dishes at a price in the menu. This indicator can be used both for specific dishes and for all products in a public catering establishment. This indicator (28-35%) helps to properly form and control the price of the dish.

Total cost of products – Shows how big your total cost of products was. Equal to the average prime cost multiplied by the number of units of measure. Check out America's Best Bookkeepers

  1. Cost price per customer

The cost of production of dishes (%) – This figure is calculated as the cost of production of dishes to the sales of these dishes. Bar products (alcohol, drinks, etc.) are not considered.

Labor costs for the production of meals menu (hour) are the number of hours worked compared with sales to measure performance.

  1. Office of the restaurant (Front of House & Restaurant Management)

Total sales per person is the ratio of sales to the number of customers compared with the previous week or month. Analysis of fluctuations are at different times of the day.

The number of customers is a simple indicator and a good measure of your popularity.

Analysis of the cost of uniforms, aprons, tablecloths, etc. These costs can easily shock you! The productivity of personnel determines the labor costs of the staff of the hall (waiters). The ratio of sales (the amount of closed accounts) of the waiter to his labor costs. Customer satisfaction is a general characteristic, based on the analysis of feedback information, complaints, and other methods.

  1. Sales and management functions

The effectiveness of marketing and advertising costs are basically your marketing and advertising costs that are comparable to your income from them. It is a difficult indicator to measure, but definitely worth it.

The number of pre-orders, one should be attentive and active enough to get the orders in the week and a month, and so on. Especially at peak times, for example, for the New Year.

 

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Numerous studies are related to, but specifically, the impact of creativity and innovation on performance has not been measured empirically. On the other hand, if there were studies related to the impact and relation to innovation and creativity on performance, they were qualitative studies, and if they were quantitative, they were not related to innovation and creativity.


Therefore, the study has measured the impact of innovation and creativity on the performance of SMEs. The study has also analyzed how entrepreneurs can increase innovation in a company to increase its performance.

 

The article aims to determine the association of firm performance with creativity and innovation. Also, the study has analyzed the impact of creativity and innovation on the performance of the SMEs. The study has also included the following specific aims.

  • The understanding of innovation and creativity
  • Importance of innovation and creativity for SMEs
  • Identification of the practices used to bring creativity and innovation in SMEs.

 

The following are the article’s objectives that have been set according to the problem statement of the study and the whole study was focused on the following research objectives.

  • To observe the impact of innovation and creativity on the performance of the SMEs
  • To see the way entrepreneurship affects the SMEs
  • To observe the factors that can contribute to enhancing the value of the organizations through innovation.
  • The following are the questions that have been answered by the study. In other words, the following are the core research questions that have been addressed by the study.
  • What is the impact of Innovation and Creativity on SME?
  • How can entrepreneurship affect the SME?
  • What is the relation between entrepreneurship, innovation, creativity, and SMEs performance?

 

Definition of Variables

There are three core variables of the study including creativity, innovation, and firm performance. Also, the basic definition of the previously mentioned variables is as follows while the performance of the company has been measured in terms of SMEs’ performance.

 

Creativity

Creativity is the name or idea of adding or putting a certain value in product or service that can enhance the customer experience or can give an exciting look to the product or service. In addition, creativity is the result of imagination and thinking differently. Because creativity is the name of making things different from their traditions. However, creativity can be done by just doing something different for an existing product or service.

 

Innovation

The process of updating products, services or systems is known as innovation. Also, it means that when a company continuously improves its offering and services to delight its customers more professionally by adding value in goods and services, it is known as innovation. Furthermore, innovation could increase the market reputation of the company and can lead it to better results, but it is also risky because innovation may fail sometimes.

 

Performance

Performance refers to the results of a company. Moreover, performance has different dimensions and can be measured in different aspects because the performance of the company can either be measured by strategic or financial prospects. Moreover, financial prospects include growth, profitability and market value of the company; on the other hand, strategic performance includes long term market growth, market reputation, and other strategic aspects. Finally, overall performance can be measured by using financial and strategic aspects by keeping them together and comparing the firm’s performance along with its benchmarks. In this study overall performance of SMEs has to be measured.

 

A literature review of this study consist of two different parts including theoretical review and empirical review. Also, the literature review showed the current knowledge and work of scholars done on innovation, creativity and SMEs’ performance. Moreover, in the literature review, the work that was done regarding the variables above by other scholars have been summarized, and several research papers were reviewed to find the academic significance of the topic. Furthermore, in the theoretical review section, all theories and frameworks regarding innovation, creativity, and firm performance. On the other hand, in the empirical review section, empirical studies have been summarized to conclude the findings of empirical studies related to the topic.


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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.