Using your Pub EPOS to improve your gross profit

Frankie Neale • Jun 20, 2018

One of the many advantages of using a modern pub EPOS system is you can track your most important figures easily. One of the most important of these is your gross profit (GP).


By tracking your GP closely you can identify ways to improve it, which will feed directly through to your profits.

A good pub focused EPOS should allow you to see your GP on three levels.


Product GP


This is the GP you make on the sale of each product. When you set your prices on your EPOS back office you should be able to see the GP you will be making on each item. Checking this as you update your prices is the first step in ensuring you are making enough margin on each sale.


For food or cocktails that have recipes, it’s useful if your system has the ability to calculate the recipe cost automatically. If it doesn’t you should calculate the cost yourself so you can enter it into your system and make sure you know the GP you are making on those items.


EPOS product recipe set up, calculating GP


Theoretical GP 


This is the GP you should have made on your sales, based on the product GP for all the products you have sold. You should be able to see on your EPOS reports what your theoretical GP was for any period. This provides your target GP for those sales. This may not be the same as the actual GP you made, and this is where the final check comes in.


Actual GP


This is the GP you actually made based on the stock that you have gone through over the period. You will see this figure on your stock report when you run a stock take. This should ideally be as close as possible to your theoretical GP, but due to wastage or unexplained variances is likely to be different.


Improving Your GP


Tracking GP on all 3 levels will identify options to improve on it. Increasing your prices or driving down your cost prices will improve your product level GP. Any improvements here will feed straight through to your theoretical GP. Any difference between your theoretical and actual GP can be then be minimised through reducing wastage or investigating any unexplained variances.


To see how our Pub EPOS can help you track and improve your GP contact one of our team.

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