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Introduction
Chapter 1 : Fundamentals of Restaurant Operations
Chapter 2 : Ingredients and Yield Loss
Chapter 3 : Cost analysis and ingredient valuation
Chapter 4 : Inventory management
Chapter 5 : Technology, Automation, and Artificial Intelligence in Kitchen Operations
Chapter 6 : Pricing, Contribution Margin and Cost Control
Chapter 7 : Sales, Marketing and the Psychology of the Menu
Chapter 8 : Inventory Management, Internal Controls and Food Safety
Chapter 9: Standardisation and Description of Ingredients and Dishes
Chapter 10 : Service, service processes, and service quality Service as the foundation of the guest experience
Chapter 11 : Digital reviews and online visibility
Chapter 12 : From Concept to Operation
Chapter 13 : Operational Metrics and Performance Management
13.1 Key operational metrics (KPIs)13.2 Interpreting operational data (POS/ERP)13.3 Profit, contribution margin and EBITDA13.4 Visual representation13.5 Exercises and examples13.6 References
Chapter 14 : Process Design and Service Flow
Chapter 15 : The future of restaurant operations: challenges and opportunities
Chapter 16 : Glossary

Chapter 13 : Operational Metrics and Performance Management

In this chapter, we build on the previous discussions of strategy, organisational structure, and human resource management by shifting attention to practical performance metrics that enable managers to oversee restaurant operations with professional clarity and focused performance management.

Before turning to individual indicators, it is important to understand that key performance indicators (KPIs) fall within the broader concept of performance management, which is rooted in the Balanced Scorecard methodology developed by Kaplan and Norton (Kaplan & Norton, 2004).

By selecting purposeful metrics that are linked to the company’s strategy and long-term objectives, it becomes possible to ensure a consistent alignment between day-to-day execution and strategic decision-making.