Why KPIs for Online Food Delivery are Important to Track
Online food delivery has become a vital revenue stream for many restaurants. With more customers opting for the convenience of having meals delivered, it’s crucial for restaurant owners and managers to understand and measure the performance of their delivery operations. Tracking key performance indicators (KPIs) allows restaurant owners to gain insights into various aspects of the delivery process, from order accuracy to customer satisfaction.
By closely monitoring these KPIs, restaurant owners can identify areas for improvement, optimize operational efficiency, and ultimately increase profitability. Whether it’s reducing order preparation time or improving order accuracy, tracking the right KPIs will help streamline the delivery process and ensure long-term success.
Key Food Delivery KPIs to Track
In the following sections, we’ll break down the most important food delivery KPIs to track for success, and how each one contributes to the overall performance of your restaurant’s online food delivery operations.
Order Acceptance Time
Order acceptance time refers to the period between when a customer places a delivery order and when the restaurant acknowledges and accepts it. This metric is crucial because it impacts the overall delivery speed and customer experience. A slow order acceptance can delay the entire process, leading to longer delivery times and possible cancellations, which can frustrate customers. Additionally, longer order acceptance time can affect your ranking within delivery apps, leading to less visibility and lower order volume.
To improve this metric, ensure that staff are notified of new orders immediately. You can also automate this process if you are using a food delivery aggregator such as Cuboh. Cuboh will not only consolidate your delivery app tablets into one but will also give you the option to turn on auto-accept for your delivery apps. Cuboh’s delivery app integration auto-accepts all orders in 0.1 seconds so that you can rank higher on the apps and improve your customer satisfaction.
Order Preparation Time
Order preparation time measures how long it takes to prepare a delivery order from the moment it’s accepted until it's ready for pickup or delivery. This KPI is essential because it determines how quickly your kitchen can process orders and affects the customer’s overall delivery experience. Shorter preparation times can increase customer satisfaction by speeding up the delivery, while prolonged preparation times may lead to dissatisfaction and reduced order volume during busy hours. Your preparation times will vary depending on different orders and times of day but it’s important to keep an eye on the average to ensure it isn’t increasing over time.
To improve preparation time, streamline kitchen workflows, reduce bottlenecks, and ensure that your kitchen is adequately staffed, especially during peak hours. Implementing batch preparation for popular items and regularly maintaining kitchen equipment can also help speed up the process.
Order Accuracy Rate
Order accuracy rate refers to the percentage of orders that are delivered correctly, without missing or incorrect items. This KPI is vital because consistent order accuracy directly impacts customer satisfaction and can help reduce refund or replacement costs. A high order accuracy rate fosters customer loyalty and minimizes negative reviews, while frequent mistakes can damage your reputation and lead to lost business.
Incorrect delivery orders often come from incorrectly inputting orders into your POS system. If this is an issue in your restaurant, Cuboh sends orders from your delivery apps straight to your POS or kitchen printer in real-time, removing the human error and ensuring your orders are accurate. Cuboh's POS success rate is 99.9% so your customers can get exactly what they ordered. If your order accuracy is due to other causes, consider implementing a double-check system where orders are reviewed before being packed for delivery.
Total Number of Online Orders
The total number of orders is a straightforward KPI that tracks the volume of online delivery orders your restaurant receives over a given period. This metric is important because it reflects the demand for your online delivery and can help you evaluate the effectiveness of your marketing and promotional efforts. A steady or growing number of orders indicates that your restaurant’s delivery service is appealing to customers, while a decline may signal issues that need to be addressed, such as delivery delays, poor food quality, or lack of visibility on delivery platforms.
To find this data, review reports from your online delivery platform, POS system, or food delivery aggregator which typically track the number of orders automatically. Tracking this KPI over time can reveal trends, such as busy periods or seasonal spikes, helping you plan resources accordingly.
Revenue per Order
Revenue per order measures how much revenue your restaurant earns from each individual delivery order. This KPI is critical for understanding the profitability of your delivery service. While a high number of orders is important, if each order generates minimal revenue, your business might struggle to maintain profitability. This metric helps you assess whether your pricing strategies are effective and whether you’re getting the most value from each order.
Revenue per order can be calculated by dividing your total online delivery revenue by the number of orders within a given time frame. To increase revenue per order, consider offering upsell opportunities during the checkout process, like adding sides or beverages, or bundling items into meal deals. Strategic pricing, especially for high-margin items, can also help boost this metric.
Average Order Value
Average order value is a key indicator of customer spending habits and measures the average amount a customer spends on each delivery order. This KPI is important because it shows how effectively you’re able to encourage customers to increase their spending when they order online. A higher average order value suggests that customers are purchasing additional items, selecting more premium options, or choosing larger orders, all of which contribute to increased profitability.
Like many of these metrics your average order value data can typically be found through your delivery platform, POS system or delivery app aggregator. To raise the average order value, consider offering bundle deals, limited-time promotions, or suggesting add-ons during the ordering process, such as sides or beverages. You can also highlight popular or high-margin items on your delivery menu to encourage customers to spend more.
Customer Satisfaction Ratings
Customer satisfaction ratings measure how customers perceive their overall delivery experience, including food quality, delivery time, and service. This KPI is important for maintaining a strong reputation and ensuring repeat business. Positive reviews and ratings often lead to customer loyalty, and word-of-mouth referrals, while negative ratings can signal areas that need improvement, such as order accuracy, food presentation, or delivery speed.
You can find your delivery app reviews on your delivery platforms. Many delivery services allow customers to rate their experience, which provides an easy way to track this metric. To improve customer satisfaction, focus on consistently delivering high-quality food, meeting promised delivery times, and ensuring that orders are accurate. Responding to customer feedback and addressing any complaints quickly can also help boost your satisfaction ratings.
Most Popular Menu Items
Tracking your most popular menu items helps you identify which dishes are the top sellers in your online delivery service. This KPI is important because it allows you to focus on promoting and optimizing the menu items that are already popular with customers, ensuring you keep these items well-stocked and marketed. Understanding which dishes perform best can also guide future menu development and promotions.
You can find this data through reports, which typically track sales for each item. To leverage this KPI, you can highlight these popular items in your online menu, offer special deals on them, or bundle them with other items to increase sales. Additionally, consider using this information to adjust your menu, focusing on items that drive high sales and profitability.
Repeat Customer Rate
The repeat customer rate measures the percentage of customers who order from your restaurant more than once. This KPI is vital for building long-term customer relationships and ensuring steady revenue. A high repeat customer rate indicates that your restaurant is providing an enjoyable experience, leading customers to return. Retaining customers is generally more cost-effective than acquiring new ones, making this an important metric for profitability.
Data on your repeat or return customers is often available through delivery platforms or customer relationship management systems. To increase your repeat customer rate, consider implementing loyalty programs, offering exclusive deals to repeat customers, or providing personalized promotions to encourage them to order again. Excellent customer service and consistently high-quality food will also help boost customer retention.
Refund and Discount Totals
Refund and discount totals measure the overall monetary value of refunds and discounts issued due to problems such as incorrect orders, delays, or customer dissatisfaction. This KPI is essential for identifying underlying issues in your delivery operations that may be affecting both customer experience and your bottom line. High totals in refunds or discounts could signal frequent errors, poor food quality upon arrival, or delivery delays, all of which can harm your restaurant's reputation and reduce profitability.
You can track refund and discount totals through your POS system, delivery platform, or your delivery app aggregator which will provide detailed records of the amounts issued. Comparing this total to your overall revenue will give you insights into how much potential profit is being lost due to operational issues.
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