In the middle of the chopping, slicing and stirring, you may have little time to measure the metrics of your meal prep business. However, if you want a healthy company, you’ll want to consider doing so. Refer to this meal prep business plan template to craft a comprehensive business plan and we’ll measure metrics from there. Here are key metrics to help your meal prep business become and stay healthy.
1. Sales Revenue
This important metric provides essential information by your calculation measuring the total sales of any month and subtracting any costs of returned or unused meal prep items during that same month. The final number is your sales revenue, which suggests your business is either making money or may need to make improvements.
2. Customer Retention
This critical metric measures how many of your clients reorder from your meal prep business in any given period of time. For example, in one six-month period, did a client order at least 3 times? This indicates the retention rate. If clients aren’t returning to reorder, you’ll want to look at any disconnects for broken relationships and then correct issues.
3. Website Traffic
Your meal prep business can grow steadily with a creative and well-designed website. Measure the amount of website traffic received each month. If traffic is low, check for broken links or other obstacles for clients. If traffic is high, continue your current website promotions and…congratulations!
4. Cost of Goods Sold: Total and Individual Measurements
To find the total cost of goods sold, add the total amount of the food costs. Divide the total amount by the number of people to be served. These metrics represent your total cost of goods and individual cost of goods. The cost of the ingredients purchased for preparation subtracted from the total order income displays the profit your meal prep business made on the order.
5. Retention Rate
Satisfied clients are those who return again and again. Measure the rate of client returns in any month to discover how many clients are being retained. If needed, reach out to clients to repair any misunderstandings or make corrections as needed.
If you want your meal prep business to be healthy, you’ll want to check these important metrics every month to stay ahead of any improvements that may be needed. Congratulate yourself with the wins and move forward to change the losses – you’ve got this!