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Business KPI Analysis

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Business KPI Analysis

You are helping a small Australian café review its performance. Use the KPI dashboard and the information in each question to work out what is going well and what could improve.

What makes a useful KPI?

A key performance indicator (KPI) is a measure a business tracks to see whether it is meeting an important goal.

1.A café wants to reduce food waste. Which measure is the most useful KPI for this goal?

The number of food items thrown away each week
The colour of the café's menu
The owner's favourite meal
The number of chairs in the café

2.Which statement best explains why a business should choose KPIs linked to its goals?

Relevant measures show whether actions are helping the business reach its goals.
Every business must use exactly the same KPIs.
KPIs guarantee that a business will make a profit.
A business only needs to measure things that are easy to count.

3.The café's goal is to improve customer experience. Name one suitable KPI and explain what it would measure.

Read the café's KPI dashboard

The café compared its results for April with March. Dollar amounts are in Australian dollars (A$).

KPI

March

April

Goal

Sales revenue

A$12,000

A$13,200

Increase

Customer rating (out of 5)

4.0

4.4

At least 4.5

Orders served within 5 minutes

72%

78%

At least 80%

Food waste per week

18 kg

15 kg

No more than 12 kg

4.Using the dashboard, which two KPIs improved from March to April?

5.Calculate the percentage increase in sales revenue from March to April. Use: (increase ÷ March revenue) × 100.

6.How far below its goal is the April customer rating? Give your answer in rating points.

7.True or false? Food waste improved in April, but the café still met its waste goal.

TrueFalse

Make a business recommendation

KPI results help a business decide what to try next. A useful recommendation links evidence to an action.

8.The café owner wants to improve the percentage of orders served within five minutes. Suggest one practical action and explain how the KPI could show whether it worked.

9.Give one reason the café should not judge its overall success using sales revenue alone.

10.Choose the most urgent KPI for the café to focus on next month. Use a dashboard result as evidence and explain your choice.