RESTAURANT STRATEGY Podcast – Episode Summary
Episode: The Only Growth Metrics That Matter
Host: Chip Klose
Date: December 15, 2025
Overview
In this episode, Chip Klose zeroes in on the “only growth metrics that matter” for independent restaurant owners striving to achieve consistent, predictable 20% returns. The conversation breaks down which metrics genuinely drive revenue growth, delineating a clear distinction between what should be measured on the operations side and the marketing side. Chip’s style is direct, practical, and packed with actionable insights, aiming to cut through the noise and focus restaurateurs on what moves the needle.
Key Discussion Points & Insights
1. The Two Paths to Revenue Growth (00:00)
- Operational Maximization: Maximize each guest seated and each revenue stream.
- Marketing Expansion: Increase foot traffic, repeat visits, and word-of-mouth referrals.
- Quote:
“Maximizing the people you have in the room, maximizing all your various revenue streams and getting more people through. That's it.” — Chip Klose [00:18]
2. The Operations Side: Metrics That Matter (04:10)
a. Cover Counts
- Track how many guests are actually walking in and sitting down for each meal period.
- Essential for identifying capacity and setting realistic growth targets.
b. Per Person Average (PPA) / Check Average
- Calculate by dividing total revenue for a shift by the number of covers.
- Break down by meal period and even by weekday vs. weekend.
- Quote:
“I want to know my weekday dinner versus my weekend dinner. I want to know about how much I can count on people spending.” — Chip Klose [05:55]
c. Server Performance by PPA
- Not all servers drive the same revenue—track PPA by individual server.
- Use the bell curve: identify rockstars, underperformers, and the middle majority.
- Use top performers to train others and optimize scheduling for big nights.
- Quote:
“I want my top performers waiting on more covers. Likewise...I want to limit [underperforming servers’] exposure to guests because the guests that sit with my top performer are worth more to me.” — Chip Klose [07:32]
d. Revenue Streams Breakdown
- Track revenue by service type: breakfast, lunch, dinner, private dining, catering, retail (merch, cookbooks).
- Analyze the pie chart: Know what's maxed out and where there’s room for growth.
e. Year-over-Year (YOY) Revenue Growth
- Set clear, actionable growth targets year over year.
- Adjust strategies based on whether growth is coming from higher PPA, more covers, or new streams.
3. The Marketing Side: Growth Levers (13:35)
a. Net New Email (or SMS) Subscribers
- Number one marketing metric—how many email/phone contacts are you adding monthly?
- Central to remarketing and driving repeat visits.
- Quote:
“Net Subscriber growth is the number one...metric to track when it comes to growth on the marketing side.” — Chip Klose [14:11]
b. Google Search Ads Cost Per Click (CPC)
- First dollars in digital marketing should go to Google Search Ads—non-negotiable.
- Track CPC; aim for below $1, and ideally below $0.50 before scaling up spend.
- Quote:
“The first dollars you should be spending are on Google Search ads. Hard stop. There is no debate.” — Chip Klose [15:07]
c. First-Time Diners
- Track how many tables or covers are first-timers each service.
- Often, 40% or more are new guests—a huge opportunity for conversion.
d. Second-Time (Repeat) Visits / Bounce-backs
- Offer creative bounce-back incentives for first-timers (free apps, drinks, kitchen tours).
- Track the return rate on these offers for reliability of repeat visits.
- Quote:
“If you identify the first timers, then you can do something to invite them back.” — Chip Klose [16:44]
e. Google Rating & Monthly Review Count
- Restaurants should target a Google rating of 4.4+.
- Aim for 30–50 new reviews monthly—if not, boost efforts.
- Quote:
“You should be getting somewhere between 30 and 50 new reviews every single month. And if you're not, you're just not putting enough into it.” — Chip Klose [17:50]
Notable Quotes & Memorable Moments
-
On Measuring What Matters:
“When it comes to growing revenue, we can sell more of our thing, we can sell our thing for more money, or we can sell a variety of different things...That’s it.” — Chip Klose [02:35]
-
Server Performance Insights:
“I want to know what the top performers are doing so I can teach that to the low performers.” — Chip Klose [08:41]
-
Marketing Data as Gold:
“You gotta get their phone number, you gotta get their email address...Net Subscriber growth is the number one [metric] at least in the year 2025, going into 2026.” — Chip Klose [14:11]
-
Digital Advertising Rule:
“The first dollars you should be spending are on Google Search ads. Hard stop. There is no debate.” — Chip Klose [15:07]
Timestamps for Key Segments
- Introduction to Growth Strategies: 00:00 – 01:05
- Operations Metrics Overview: 04:10 – 13:35
- Cover Counts: 05:00
- PPA and Server Performance: 05:55 – 08:47
- Revenue Streams: 09:15
- YOY Growth: 12:05
- Marketing Metrics That Drive Growth: 13:35 – 19:24
- Net Subscribers: 14:11
- Google Ads CPC: 15:07
- First/Second-Time Diners & Bounce-back Offers: 16:44
- Google Reviews & Ratings: 17:50
Recap: The Only Growth Metrics That Matter
Operations:
- Cover Counts
- Per Person Average (PPA)/Check Average
- Server PPA Performance
- Revenue Streams Breakdown
- Year-Over-Year Revenue Growth
Marketing:
- Net New Subscribers (email/phone)
- Google Search Ads CPC
- Count of First-Time Diners
- Second-Time Visits/Bounce-back Return Rates
- Google Rating & Monthly Review Volume
“That’s it. When we talk about growth metrics, the only ones that matter are those...” — Chip Klose [18:48]
Action for Listeners:
Chip encourages restaurateurs to focus exclusively on these metrics for 2026 and consider joining the P3 Mastermind for further support if they struggle with profitability.
This summary captures the episode’s actionable advice and Chip’s signature clarity—helping listeners cut through complexity and concentrate on what truly drives restaurant growth.