Manage your margins

The Lynx Purchasing GP Calculator App has been downloaded by more than 10,000 chefs and hospitality professionals. The free App, offered by buying specialist Lynx Purchasing for Apple and Android devices, helps operators manage margins and calculate menu prices simply and efficiently.

The GP App is the first digital product to receive the Craft Guild of Chefs endorsement, and allows users to manage their menu costs using one of three calculations:
• By keying in the cost of ingredients and target percentage GP, users are given the correct price to charge on the menu;
• Entering the menu price and required margin gives the target cost price for ingredients;
• Keying in the cost of ingredients and selling price of a dish gives a readout of the gross profit being made.

“Inevitably, there’s a lot of focus on customer-facing Apps, but there’s also a digital revolution taking place back-of-house,” says John Pinder, managing director of buying specialist Lynx Purchasing. The free Lynx GP Calculator App has been downloaded almost 10,000 times and is widely used by chefs and managers to plan menu prices.

“Knowing the GP you’re making on a dish is at the core of the profitability of a pub’s food operation, but it’s an area where many chefs and managers struggle,” says Pinder. “That’s partly down to the fact that people who are creative in the kitchen aren’t always the best at calculating menu costs and pricing dishes.

“Equally when you’re competing for trade by offering competitively priced specials or set price menus, as is often the case at this time of year, there’s a temptation to focus on the number of customers rather than the GP of the dishes being served.

“Using the GP App, any member of staff armed with a smartphone or tablet can monitor the profitability of a dish, working from the cost of the ingredients, the menu price, or the target GP.”

Giles Fry, managing director of Lynx customer Snug Bars, said: “The market is very competitive at the start of the year, with customers eating out less often and looking for good value when they do. Fixed price meals and set menus can be a useful way to bring in extra customers, especially at quieter times of the day or week, and quite often need to be implemented quickly in response to other operators’ offers.

“You may not always be achieving your ideal GP when you offer a set price deal, but you can balance that against the additional revenue generated. It’s still essential to know what GP you’re achieving, and using the Lynx GP App means we can keep tabs on margins when we flex our food offer.”