How ABC-analysis works
ABC-analysis helps you understand which items to promote, where to review markup, and why some bestsellers do not appear in segment “A”.
ABC analysis groups items based on their contribution to results, making it easier to identify priorities. Segments “A”, “B”, and “C” usually follow the 80/15/5 rule by profit contribution.
To check ABC-analysis:- Open Reports → ABC-analysis in the management console.
- Select the period, waiters, and categories.
- Review the report data and segments “A”, “B”, and “C”.
What the columns in ABC-analysis mean
The report shows key indicators for each item during the selected period.
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Sales — the number of sold units for the selected dish during the selected period.
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Sales, % — the item’s share of total sales quantity during the selected period.
For example, if a dish shows 7%, it means the dish accounts for 7% of all sold items during that period. -
Revenue — the total sales amount for the item during the selected period.
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Revenue, % — the dish’s share of total revenue during the selected period.
For example, if an item shows 11%, it means it generated 11% of the total revenue during that period.
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Profit — the actual venue income from selling the dish during the selected period after deducting cost of goods sold, taxes, discounts, bonuses, gift cards.
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Profit, % — the item’s share of total profit during the selected period.
For example, if an item shows 12%, it means it generated 12% of the total profit from all dishes during that period.
What segments “A”, “B”, and “C” mean
Group A ≈ 80% of results. A small number of items generates most of the revenue and profit.
Recommendations:
- keep these items in stock,
- monitor cost,
- control preparation speed.
Group B ≈ 15%. Stable mid-performing items.
Recommendations:
- test modifiers,
- run promotions,
- experiment with menu placement.
Group C ≈ 5%. Low-performing long-tail items.
Recommendations:
- review recipes,
- check pricing,
- improve menu placement.
💡 To check which products or dishes were not sold today, select today’s date in ABC analysis and review the Sales column.
Why a bestseller may not appear in segment “A”
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Low profitability. A popular dish with a high purchase cost and low markup may generate less profit than other items. As a result, it falls into segments “B” or “C”.
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Missing ingredient deliveries. If ingredient supplies are not recorded, cost of items sold is calculated incorrectly. This distorts the profit.
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Incomplete dish setup. If ingredients are missing from a dish recepy, profit is also calculated incorrectly. This can lower the item’s segment ranking.
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Incorrect analysis period. Short periods of 1–3 days produce unstable segment distribution.
For more accurate analysis, select at least one week or one month.
For example, “Filter coffee” may have a high margin and appear in segment “A” by profit even with average revenue. “Ribeye steak” may generate high revenue but have a high food cost, placing it in segment “B” by profit.
🤖 To go beyond viewing ABC-analysis results, connect analytics with Postie AI Assistant. The AI assistant analyzes your venue data, explains key trends, and helps identify new growth opportunities in your menu and sales.
If you notice unusual indicators, review the affected dishes: ingredients, cost of goods sold, gross weight, net weight.