Profitability

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📈 Business Insights

The success of any business is tied to profitability.
Determining what makes a business profitable is therefore essential to its survival.

One of the profitability metrics used by hospitality businesses is "Food Costs".

Calculating Food Cost % = COGS / Food Sales

Where: COGS (Cost of Goods Sold) = Starting Inventory + Purchases Ending Inventory.

SplitAbility can capture "Food Sales" totals on groups of items, individual items or any combination of items concurrently.

Groups are then totalled at "Close Off" and charted over time, giving the business owner accurate details of what's working and what's not. A/B testing can be applied in real time, taking the guesswork out of where the profit is being made.

See reports for more details on inventory count.


📝 How to add groups:


Example Food, Beverage & Alcohol:

In this example we show how traditional food & beverage totals are calculated.
Also shown here is a profitability contest between Ceasar/Prawns vs Ceasar/Chicken.


In the POS, add Group/s in "Settings - Admin - Tax/Currency - Groups"



In the menu spreadsheet, associate the Group with the menu item



Success


Finding profitable menu items is as easy as adding a group and analysing the results.