Cost of sales specialist
Understand what ingredients and stock cost your cafe.
Ingredients is your cost of sales area. It covers the ingredients and stock used to make what you sell. Labour and other operating costs are tracked separately.
Week commencing. Chart scale 27.5% to 32.0%. Same example venue, complete weeks and consistent cost basis.
Ingredient dollars are $389.10 higher. Their share is lower because sales grew faster. A lower percentage does not mean less cash spent.
Cost of sales is the value of ingredients and stock used, divided by net sales. Opening stock + purchases − closing stock gives the stock used. Labour and overheads are separate.
Share of sales spent on ingredients · 28%
Source: illustrative Square, Xero and Deputy data. Stock-adjusted estimate.
Scripted replies in this preview. Memory changes will guide conversations in the production app.
Judge a cost against the sales it supports.
Beans account for 17.7% of coffee sales in this example. Include milk and packaging to understand the broader cost. A large bill on its own does not mean coffee is performing poorly.
Illustrative week, 18 to 24 September. Net sales exclude GST. Costs exclude recoverable GST. Coffee sales of $10,500 are a sample category total, not inferred from a venue’s overall sales.
This view excludes milk, cups, lids, other ingredients, labour and overheads.
This is a purchases-based estimate, not a confirmed gross margin. Stock movements can make purchases differ from what was used. With complete stock usage and reviewed allocations, Iris can calculate category gross profit before labour and overheads.
Compare like-for-like invoice prices, then prepare a friendly review request you can edit.
Illustrative workflow. No email or marketing service is connected in this preview.A P&L section can contain both. Review the underlying accounts so Iris follows product costs and Luna follows wages and super.
Preview account mappingAt the same $21,580 net sales, a one-point reduction in product cost represents $215.80 per week. Investigate waste, portions and supplier prices before treating it as a saving.
Model a change with your own numbersIllustrative operational detail · Example week, 18 to 24 September
Illustrative reviewed invoice lines, latest price against the previous price. Match pack size and tax treatment before comparing.
Share of all cafe net sales, $21,580. These are buying categories, not product margins.
Example purchases total $6,150, or 28.5% of all cafe net sales. Stock movements determine what was used. This list is not a ranking of profitability.
Xero bills dated inside the week, ex GST.
Each line is the same item from the same supplier, last invoice against the one before. Our own beans are watched exactly like any other line.
Margin on the price ex GST, from your last invoice line.
Hi Brownes team, quick one. Our 2L full cream moved from $3.10 to $3.35 on the 18 September invoice, about 8%. Is that the new standing price or a one-off? Thanks, Sample cafe.
Signal never sends this. You do, if you want to.
The draft bill lands in Xero. You approve it there. Signal never approves a bill.
Sample Every figure on this page is sample data, not a real venue.
Tools for this number
Xero bills fill purchases. Pulled 6:10am.
The weekly purchases box is prefilled from Xero. Change it if the bills are not all in.