Does your restaurant have technology that ensures profits-2.png


Owing to intense competition in the market, along with new technologies & processes and decreasing margins, the dynamics of your business change every day. Failure in covering costs & reporting profits results in the closure of many restaurants; which is why a regular analysis and tracking of your profitability is essential. Not just to stay in the game but also to stay ahead of the pack.  

This analysis brings to light the profit leaks, allowing you to not just plug them but also to minimize threats while maximizing opportunities. Fortunately, tracking and analyzing your business is now simple with technology such as Cloud Based POS which provides 24/7 access to reports and helps integrate various operations of your business. This helps you get a holistic view of the total sales vs cost of goods sold, along with details on fringe elements like redemptions, loyalty program, menu profitability, inventory analysis, online ordering & reservations and much more.

Here are some of the key areas that you can monitor and tweak with the help of a Cloud POS, which will help cut costs and enhance profitability:


  • Track procurement costs

Also known as Cost of Goods Sold, these procurements costs cover the amount you spend to purchase food, alcoholic beverages and non-alcoholic beverages from your vendors. This cost is a critical spend for your restaurant business and can be easily monitored with a POS on a weekly basis, in order to keep a tab on where the costs are increasing and affecting the profitability of your menu items.

You can adjust your menu pricing to combat higher procurement cost and stay profitable, or you can go back to negotiating with your vendors for a better bargain if you notice an increase in costs. Industry experts say that the regular monitoring of this element of restaurant cost can result in savings of up to 4%.

  • Track Category costs

Many factors affect the prices of your items, and an effective POS can allow you to track costs of goods by category. For instance, your food could be categorized into dairy, produce, seafood, poultry etc. making it easier to track the rise and fall of their costs. This helps increase profit and keeps you within the stipulated budget. Another example that can help you save on costs is planning a smart menu. Seasonality can drop the cost of meat allowing you to adjust your menu to include more of it thereby pushing profits. Similarly spotting an increase in a particular category can help you plan your next months order.

  • Track Inventory

A cloud POS system empowers you to maintain an inventory which gets automatically adjusted with sales & purchase. A tracking and analysis of this data at the end of the week will reveal what items aren’t selling, ordered extra or running short mid week. This allows you to re-work your recipes, reduce purchase of extra produce and also check if your kitchen is following portion control to avoid running out mid-week. Tracking inventory also inculcates awareness in your team to be more vigilant and deters pilferage.

  • Track Sales Category

While more and more people are eating out, even more are ordering online, leaving the dine-in business behind. Except for the holidays & the festival season, when this trend might alter itself. Therefore, it is important to monitor where your sales are coming from. For instance, if your catering & take-out business is getting stronger, then you could re-distribute your staff in the restaurant and have them handle the business boost in take outs and deliveries.

  • Track Marketing Effectiveness

The rise of online marketing has allowed the traditional marketing costs to go down with their efficiency, ease of use and outreach. A cloud POS allows data to be entered and accessed from anywhere and reports to be available at all times, detailing intelligent data assimilation, which can be used for creating targeted marketing campaigns and to enhance custom experience.

Simple customer information taken at the time of subscription can help create a conversation with the help of emailers, birthday vouchers or event invites to your patrons. Comparing promotional spends against redemptions of offers & promo codes will give you an idea on the effectiveness of your marketing strategies, allowing you to re-work them if needed.


Whether your sales have been low due to seasonality or your distributor has raised costs, tracking & analyzing data at regular intervals will help you take important decisions to alter the situation.

Not only is knowledge power, what you don’t know can truly harm your business. Have you empowered yourself with the right technology your business needs to get more profitable?

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