Answers / Churn & retention

    How do I calculate customer retention rate for my restaurant?

    Written by PEKO Team.Last updated: 2026/05/21.

    Retention rate = ((Customers at end of period − New customers acquired in the period) / Customers at start of period) × 100. Use a 90-day window for the cleanest F&B signal.

    Published: 2026/05/01

    Retention rate strips out new acquisition so you measure how well your existing base sticks. The formula: ((Customers at end of period − New customers acquired in the period) / Customers at start of period) × 100.

    For F&B the right window is usually 90 days — long enough to capture monthly visit cycles, short enough to be actionable. Anything shorter than 30 days mostly measures noise; anything longer than 6 months delays feedback past the point you can act on it.

    Define 'active customer' precisely

    An active customer is anyone who transacted in the prior period. If you don't lock the definition, your retention number is meaningless across time.

    Cohort, don't average

    Track each starting cohort separately. A blended retention rate hides which months are improving and which are getting worse.

    Compare against benchmark

    F&B 90-day retention benchmarks: cafés 55–70%, full-service 50–65%, QSR 60–75%. Top-quartile operators sit 10–15 points above.

    FAQ

    What's the difference between retention rate and repeat rate?

    Retention measures the percentage of an existing cohort that stays active. Repeat rate measures whether someone came back at least once. Retention is stricter and more honest over long horizons.

    Should I measure retention by visit or by spend?

    Both. Visit-based retention is the leading indicator (changes first). Spend-based retention is the lagging indicator (what actually shows up in P&L).

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