Fourth Analytics Adaco: Sales Mix – Fourth & HotSchedules Customer Success Portal

Overview

This article is a guide on understanding Sales Volumes and Actual Vs Theoretical Cost of Goods sold using the graphs and dashboards in the Sales Mix tab in Fourth Analytics.

This tab is populated with data only if the core Purchasing and Inventory solution has an itemised sales feed from the EPOS system, and Recipes are linked to PLUs to register individual menu item sales. Otherwise, the tab will display no data.

Banner Summary Figures

This shows total Recipe Sales Value (net of tax) from the EPOS system, the actual Recipe cost based on consumption, and actual Recipe profit.

This produces an actual Cost of Goods Sold % based on actual consumption and sales, along with a theoretical Cost of Goods Sold % based on Recipe cost and selling price. This theoretical figure will not be correct if Recipes are not fully completed, including a selling price.

Fig.1 – Banner Summary Figures

Field Name	Description
Recipe Sales Value	Total net sales (per recipe, per outlet, per day) of all recipes with a (matching) PLU in the P&I solution. This is the (daily) total sales value sent to P&I from EPOS and is net of discounts and voids
Recipe Cost	Recipe cost * Quantity of recipes sold. It will only include sales of recipes (sent from EPOS) that have a (matching) PLU in the P&I solution
Actual Profit	Recipe Sales value - Recipe Cost
AVG Actual COGS%	(or Average Actual Cost of Sales) Recipe Cost / Recipe Sales Value. This is an Average Cost of Sales per recipe per day per outlet
Theoretical COGS%	Recipe Cost / Recipe Selling Price. The selling price can be set in the P&I solution per outlet. Otherwise the default selling price (across all outlets) will be used

Example

If you have a recipe for a bottle of Coca-Cola with Recipe Cost Price of £1, and a Recipe selling price of £4 (with a PLU linked to the EPOS system).

During the period, 100 have been sold, but there was a promotion offering 10% discount on selling price, so Coca-Cola is being sold at 90% of the normal Recipe selling price.

The Sales Mix headlines would be as follows:

Recipe Sales Value	Recipe Cost	Actual Profit	AVG Actual COGS%	Theoretical COGS%
100(£490%)	100*£1	£360-£110	£100/£360*100(%)	£1/£4*100(%)
£360	£100	£260	27.7%	25%

Net Sales Trend

This shows the actual Recipe sales trend (net of tax) in value terms, pre-set for the last 12 months. It can be viewed quickly by individual Property by selecting the By Property check box.

Fig.2 – Net Sales Trend Graph

Net Sales Vs Last Year

This shows the % change in Recipe sales value compared to the same month last year, pre-set for the last 12 months.

Fig.3 – Net Sales Vs LY Graph

Sales Mix Value / Quantity

This shows the % proportion of sales in value and quantity, by sales item category.

Fig.4 – Sales Mix – Value/Quantity Pie Charts

Theo COGS % Segment

This shows the comparison of the average theoretical Cost of Goods sold (as a %) for each Menu Item Category.

Fig.5 – Theo COGS% - Segment Graph

Top 10 Sales Items / Subcategories

This shows the top 10 selling items or Categories based on net sales value.

Fig.6 – Top 10 Sales Items / Subcategories Graphs

Bottom 10 Theo COGS % by Outlet

This shows the Outlets with the lowest average theoretical Cost of Goods sold % based on Recipes. This may be because Recipes have not been fully completed for the Outlet. A listing with no data against it indicates that no Recipes have been completed for this Outlet.

Fig.7 – Bottom 10 Theo COGS% by Outlet Graph

Sales by Segment

This shows a breakdown by Property and Outlet, and the average Cost of Goods by Menu item segment. If a zero value is displayed, this indicates that no data is available.

Fig.8 – Sales by Segment Table

COGS% by Sales Item

This table shows Actual Vs Theoretical Cost of Goods sold by each individual Menu item, and the variance between the two.

Fig.9 – COGS% by Sales Item Table

This example scenario outlines the process of reviewing which menu item groups have opportunity to drive overall improvements in profitability using the graphs and dashboards outlined above.

First ensure all Recipes are correct, selling prices are up-to-date and PLUs are linked
Select the required time period using the Date Dimension (Business day) filter under Property Details
Review the Sales Mix by Value and Sales Mix by Quantity reports to assess which Categories are large enough to have an overall impact – those with small percentages of overall sales are unlikely to drive totals overall
- Use the Top 10 Sales Items / Subcategories to view just those which will have the biggest impact. Apply filters as appropriate to focus on the areas with biggest impact
Refer to the Net Sales Trend and Net Sales Vs Last Year to see if these areas are in growth or decline. Selecting growth areas will have a growing impact
Refer to the COGS% by Sales Item and sort the Difference column by highest to lowest. This will display menu items where the actual cost % is higher than it should theoretically should be, and indicates that Product consumption is higher than the Recipe states, or that the Menu item is returning less than full selling price

As such, there may be opportunity to take action to close the gap between actual and theoretical profit.

Purchasing & Inventory - Fourth Analytics