Theoretical Sales Report

The Theoretical Sales report uses actual sales quantities to generate a Menu Engineering report. This allows you to understand the Profitability and Popularity of dishes on your menu.

The Theoretical sales report, like the Cost Modelling report utilises Kasavana and Smith's Menu Engineering framework to classify menu items as one of a STAR, PLOWHORSE, PUZZLE or DOG, according to their profitability and popularity mix.

Theoretical Sales uses your Actual sales quantities to generate this report, where with Cost Modelling the sales quantities must be entered manually.

You will find the Theoretical Sales report in the Revenue module, under the reports tab. This is a query report where you can select Outlet, Class, and time-frame.

When you run the report you will see the resulting outputs in the drill-down table at the bottom of the page. Expand the Sales Category rows to see the menu item results.

The columns in this report are summarised below:

Unit Cost: Cost of 1 portion of the item sold, based on the Menu Item profile including any recipe wastage (displayed to 2 decimal places). 

Qty Sold: Number of portions sold within the queried time-frame.
Total Cost: Overall cost of the total number of portions sold. Please note this may not show as exactly the product of Unit Cost x Qty Sold, because the Unit Cost is displayed to 2 decimal places, where the system may use more precise calculations. 

Net Selling Price: this is item selling price minus VAT

Total Revenues: selling price x quantity sold - VAT

Total Profit: Total Revenues - Total Cost

Cost of Sales %: Total Cost/Total Revenues x 100

Total Profit %: Total Profit/Total Revenues x 100

Category Sales: % of sales within this sales category

Profit Contribution: Profit high or low relative to average of Total Profit within this category

Item Popularity: Qty sold high or low relative to average of Qty Sold within this category

Please note: the results can appear skewed by changes to menu item details over time. For example Total Revenues will not always reflect the displayed Qty Sold x Selling Price, if the selling price or tax value has changed within the selected period. Similarly so with costs. Sales records are normally processed daily, and therefore theoretical revenues are generated at the time of processing for each day's sales based on the menu item configuration (cost, tax, price) at time of processing. 

Another consideration is that the classifications are relative only to the sales category they sit within. They are also relative to the specific query run - as the classification is a judgement against the average of same-category items within the queried report, it is probably that a given menu item may not consistently return the same classification.