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The Conversion Ratio: Your Secret to Boosting Restaurant Revenue


conversion ratio key metric


For every 100 people how many will order alcohol or for every 100 people how many will order food.

That is your conversion ratio.

It is a key to determine your Average Spend per Cover APC.

Its possible to achieve a high APC with low prices and even low APC with high prices. The key variable is number of dishes ordered.

If the product mix is assumed to be constant, a reduction in conversion ratio will mean the number of item ordered will be lower which implies that the revenue earned per item would be lower than estimated. If the conversion ratio is very poor, you might earn lesser or same revenue at higher prices.

So next time you raise or review your prices …check your conversion ratio.

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