You do not need a dashboard full of vanity metrics. Seven numbers, checked monthly, tell you whether the store is healthy or heading for trouble.
| KPI | Healthy range | Red line |
|---|---|---|
| Gross margin | 60-70% (retail); 60-70% food | Below 50% |
| Net profit % | 5-15% retail; 3-10% restaurant | Below 3% |
| Rent % of sales | 6-10% | Above 10-12% |
| Labor % of sales | 10-20% retail; 25-35% restaurant | Above 35-45% |
| COGS % | 25-35% food; 50-70% retail goods | Above segment norm |
| Inventory turnover | 4-12×/yr (varies by type) | Below 4× (dead stock) |
| Break-even revenue | Comfortably below actual sales | Above 90% of sales |
Read them as a system
A falling gross margin with stable prices usually means COGS or shrink is creeping up. Rising labor % means scheduling or wage pressure. Rent % above 10% is a structural problem the business cannot out-discount its way out of.
One number to post on the wall: your daily break-even revenue. Everyone from the owner to the shift lead should know the sales floor that keeps the lights on.
When a red line appears
Do not average it away. A single red KPI in month one is a tuning opportunity; ignored for six months it becomes the reason the store closes. The KPI Board links each metric to the calculator that fixes it.
Net profit below 3% is the danger zone: At that margin, one slow month or one cost spike wipes out the year's profit. Act before you reach it.