POS Hub – We Take Your Raw Data and Cook It Into Valuable Information
Posted by Jim McGinty
on Thursday, February 23rd, 2017
Data that is collected in your POS contains some pretty powerful information.
Yes of course it will show you how many smoothies, or burgers you sold today, and yes that is certainly valuable.
It will show you that your total sales for the day were $2500, and also tell you that only $2475.00 was deposited and you have a shortage of $25.00 that day, again valuable.
But your data is so so much more valuable than just the first set of numbers that you see.
Think of your data as one of the onions in your kitchen, most will only ever look at the skin of the onion, while there are so many more layers.
Lets look at some examples,
Every day your POS sends over to Peachworks a list of discounts, voids, and coupons, first let’s start with your voids, what does a void tell you?
Most would say, that maybe the server made a mistake entering the order and needed to remove the item…. yep that could be it, but here are a few other reasons that could be happening
Nope you don’t want to hear it, but let’s just put this out there, it was simply taken off so the customer did not have to pay for it…. there I said it, no wants to think this is happening, but it does and probably is.
True life example from one of my restaurants while I was managing (no names). I was working at a restaurant where I was trying to build my sales, especially on Sundays. My sales were very low on Sundays and when I did have sales it was usually larger family dinners. My inventory had not been good, so I was doing daily counts, trigger #1, my food cost was showing variances, but my sales were only slightly above what they had been, but there were up and that was good right? Using my reports, I started to look at the individual tickets, and started to notice that I had tickets showing 10 guests, sitting for 90 mins, but the ticket size was only $1.98. Hmmmmmm, that does not make any sense, digging a little further I discovered that items had been entered, but then voided off.
Putting on my Scooby Doo hat, and a lot of digging later watching sales reports, started to see each time I found this type of ticket, it was always late night, always the same server and always the same team leader. Final investigation determined that I had a lazy manager, who late at night would sit and talk to their friends while the crew ran the show. My one server would take a large order, and if they paid cash, remove all of the items except for a cup of coffee or two, and was making some very handsome tips. True Story….it happens.
How about if you are seeing the same item voided over and over again. This could indicate several different issues, problem in the kitchen, problem with the server entering the orders, or even a problem with the product or recipe, maybe the customers simply don’t like it. Look for patterns.
No matter how you slice this onion, voids are bad bad bad, and as I was always told, if you’re going to use one, there needs to be a documented reason why your using it. A void means you are not getting any inventory credit, no sales are being driven from it and always indicates a problem.
Now coupons, everyone has coupons, some in mailers, some in papers, some we just hand out, coupons are used as a marketing strategy to drive sales. So coupons are good. I always loved seeing coupons coming in, if marketing had placed them right it meant I was bringing in some new business, and maybe encouraging my repeat customers to start coming in a little more regularly. Although, coupons are good, there are a few things that you should always be aware of. You want to watch your percentage, and if you are able watch for the percentage per server, I know sounds paranoid, but using your reports will help you identify when coupon use might not be as valuable as you want it.
True story time – major coupon drop, coupon % increased, whoop whoop, we are making some good progress building sales. But hang on, my projected coupon usage was only supposed to be 3%, but I am running 5%. Time to put my Scooby doo cap on again, yep you guessed it. Coupons had been delivered to the restaurant, and my very generous front counter had been giving almost every customer a coupon for their meal. Not quite the intended purpose. How did I find out, well let’s just say my first clue after seeing my coupon % jumping was a customer that I took demanding I give her a coupon like she always gets…? Oh my!
Discounts – I love discounts, and guess what so does everyone else…hahaha…again, watching your discounts is going to very quickly help you identify when things may not be on the up and up.
Remember Mary, our coleslaw girl, well like I said before everyone loves Mary, who works 25 hours per week. If Mary gives away one BOGO (everyone loves a good BOGO Coupon) every hour for a $4.99 Burger, that is $124.75 per week of free food, or $6237.50, in FREE FOOD per year….Ohhhh Mary!
Reports, are just numbers, and you will only ever get value by reading your data. Here at Peachworks, we strive to put your data into a logical and clear Report, easily readable and understandable.
Let PeachWorks POS Hub Reports, help you cook up a clear path to greater savings.