Are Your Products Generating High Profit Levels To The Till?

 A recent report looking at the often undervalued and neglected topic of product yield, has been launched by Venners, the expert food and beverage stocktakers and compliance auditors to the hospitality industry. The business analysed over 3,000 sites across the industry, with data collected from just under 22,000 stocktakes, to discover how yield analysis can save operators up to £10,000 in annual lost profits.

The report analysed operators across pubs, bars, nightclubs, restaurants, hotels, large venue operations, together with sports & social clubs and holiday and caravan parks. It advises on how sectional yield analysis can expose underperforming product categories, which if addressed, can generate lucrative levels of profit to the till. It explains how product yield percentages can be used by operators to quickly and accurately compare sales performance across multiple sites and against competitors. However, more importantly, yield percentages tell businesses how product consumption levels actually perform against achievable sales.

The findings within the report show significant yield margin differences between sectors in the industry, with wet-led operations returning on average 3% higher yields on drink products than food-led operations and hotels being the worst performing sector. Regional differences are also identified, with Scottish and London based operators tending to achieve far lower yields than those in the North and South West. Furthermore, annual profit losses can be almost £10,000 higher per site for the worst performing postcodes.

When analysing the results per sector, the poorest performing category for the pub sector is packaged beers and ciders at 97.6%.The current industry expectation for this category, including both draught and packaged products stands at 99.5%, so the sector is currently losing 2% average of yield on this category alone.

As outlined above, the report found the hotel sector to be the weakest for average yields on drinks products at 95%, whilst also demonstrating a 5% lower drinks yield on its minerals and spirits categories against other hospitality segments. Additionally, the report highlighted hotels could even be achieving 3.1% higher yields for wine, despite it being the sector’s best performing category, and goes on to detail the potential reasons behind its poor performance.

Interestingly, UK restaurant performance comes closest to the average hospitality yield figure across all categories, with an average 97.1% yield. Figures showed that the sector achieved its highest yield performance for wine products, closely following nightclubs and bars. Its worst performing category is minerals at just under 96%, with the report demonstrating the sector should be achieving on average 4.12% higher yield on this category alone.This report shows there is a huge amount of improvement possible on product yields across the restaurant sector.

Scott Hulme, Managing Director,Venners comments: “If nothing is wasted or given away, it should be possible to achieve a 100% yield on products.Whilst many businesses have good levels of sales, if they are haemorrhaging stock through poor controls, then their operation is destined to fail. Understanding the nuances in product yield variances is one simple way for hospitality businesses to maintain a more stable bottom line.”

To download the fullYield Report free of charge and to find out how the correct yield analysis can save your business up to £10,000 in annual lost profits click visit https://www.venners.com/yield-analysis