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Sales history calculations

Find out how Sysco Studio calculates total monthly revenue, total monthly profit, item-level profit, popularity level, and class.

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Written by Stu (Chat Host)
Updated over 5 years ago

Item-level profit

Item-level profit tells us how much profit you theoretically make when you sell one unit of a menu item. It's calculated by subtracting either the recipe's ingredient costs or the cost figure you entered manually from that item's price. Item-level profit is calculated when an item has both a cost and a price.

Pro tip: Item-level profit does not take into consideration overhead, labor, or waste unless you've baked those into your cost figures in the system.

Total monthly revenue

The total monthly revenue for an item is calculated by multiplying its menu price by its sales volume in units. If you sell 100 units of an item priced at $2.00, the total monthly revenue for that item is $200.

Total monthly profit

The total monthly profit for an item is calculated by multiplying its item-level profit by its sales volume in units. If you sell 100 units of an item priced at $2.00, and they cost $1.00 each to make, the total monthly profit for that item is $100.

Popularity Level 

Popularity level compares menu items based on the units sold in a given month. High-popularity items are above average, while low-popularity items are below average. An item has a popularity level as soon as it has a Number Sold.

Pro tip: Items without sales volume are not included in the popularity average.
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Class

By comparing each menu category's sales volume and gross profit, you can see what items on your menu are working, and what you can do to optimize your menu. 

Once an item has both an item-level profit and a popularity level, it is assigned a class - which you can use as a guide on how you might improve your menu's design to maximize profits.

PLOWHORSES sell well, but don’t do as well in profit margin. Can you make these items more profitable by increasing price or decreasing cost?

DOGS don’t produce for you at all. Do you need these items on your menu?

STARS sell well and they bring the highest gross profit margin. Emphasize your Stars on your menu.

PUZZLES don’t sell as well as you’d like, but when they do, the profit margin is above average. Look for ways to sell more of these items.

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