Understand the real profitability of your products by analyzing production costs and profit margins.
Selling a lot doesn't necessarily mean earning a lot. Cost and profit analysis reveals the TRUE profitability of your business:
Real Example:
Product A: Sells a lot ($1000/month) but has high cost ($900) = Profit $100 (10%)
Product B: Sells less ($600/month) but has low cost ($200) = Profit $400 (67%)
→ Product B is MORE PROFITABLE even though it sells less.
The system automatically calculates the cost of each product based on the ingredients you use in your Inventory module:
In the "Inventory" module, upload all your ingredients with their purchase price (e.g., Flour $50/kg, Tomato $30/kg).
For each product, define which ingredients it uses and in what quantity (e.g., Margarita Pizza uses 200g flour, 100g tomato, 150g cheese).
The system adds up the cost of each ingredient used in the recipe:
ℹ️ Important: If you haven't configured ingredients for a product, the system will show "Cost not calculated" and won't be able to determine the profit margin.
The price at which you sell the product to the customer. This is the gross revenue.
The sum of all ingredients needed to produce one unit of the product.
How much you earn for each product sold.
What percentage of your sales is pure profit.
Total quantity of the product sold in the selected period.
Total profit generated by the product in the period.
Margins vary by industry, but here's a general guide for food businesses:
Low-margin products require urgent attention. Consider raising price, reducing ingredient costs, or discontinuing if it's not a draw product.
Standard margin for most restaurants and cafes. Sufficient to cover operating costs (electricity, rent, staff) and generate profit.
Excellent margin. These products are very profitable and should be prioritized in marketing and inventory. Common in drinks and desserts.
Star products! These are your "cash cows". Consider increasing visibility or using them in combos to boost other products.
| Situation | Actions |
|---|---|
| High-selling product + Low margin | Gradually increase price (5-10%) or negotiate better price with suppliers |
| Low-selling product + Low margin | Discontinue or reformulate the product. Not worth keeping. |
| High-selling product + High margin | Perfect! Prioritize in marketing, keep high stock, highlight in menu |
| Low-selling product + High margin | Invest in promotion, create combos, improve menu visibility |
Select the date range to analyze profitability: Today, This Week, This Month, This Year, or Custom.
Analyze profitability by individual store or see consolidated data from all.
You need to configure ingredients and recipes for each product in the "Inventory" module. Without this information, the system cannot calculate costs automatically.
No. The calculated margin is the gross contribution margin (price - ingredient cost). It does not include taxes, payment commissions, or operating expenses.
Review: 1) Sale prices (maybe too low vs competition), 2) Ingredient costs (negotiate with suppliers), 3) Portion sizes (maybe using more ingredients than necessary), 4) Waste and shrinkage.