Margin Analysis
While the costing dashboard gives you a snapshot, the Margin Analysis page goes deeper. It shows you not just what your margins are in theory, but what they look like in practice - weighted by actual sales volumes, tracked over time, and broken down by category.
Weighted margin calculations
A simple average GP% treats every recipe equally. But in reality, you might sell 200 portions of your 62% GP burger every week and only 10 portions of your 78% GP salad. The burger's margin matters far more to your bottom line.
Weighted average GP% accounts for this by factoring in how many of each dish you actually sell:
Weighted GP% = Sum of (each recipe's GP% x its sales volume) / Total sales volume
Example:
| Recipe | GP% | Portions sold/week | GP contribution |
|---|---|---|---|
| Classic Burger | 62% | 200 | 62% x 200 = 12,400 |
| Caesar Salad | 75% | 50 | 75% x 50 = 3,750 |
| Fish & Chips | 68% | 120 | 68% x 120 = 8,160 |
| Chocolate Brownie | 78% | 80 | 78% x 80 = 6,240 |
| Totals | 450 | 30,550 |
Weighted GP% = 30,550 / 450 = 67.9%
Compare this to the simple average: (62 + 75 + 68 + 78) / 4 = 70.75%. The weighted figure is nearly 3 points lower because the lower-margin burger dominates your sales mix.
If you have connected your POS (point of sale) system to Brikly, sales volumes are pulled automatically. If not, you can enter estimated weekly sales per recipe manually to get an approximate weighted GP%.
Low-margin items
The Margin Analysis page highlights recipes that are dragging down your overall margin. These are shown in a dedicated section, sorted by their impact on your weighted GP%.
For each low-margin item, you will see:
| Column | What it tells you |
|---|---|
| Recipe name | The dish |
| Current GP% | The recipe's GP% based on current ingredient costs |
| Target GP% | Your desired GP% for this recipe |
| Gap | The difference between current and target |
| Weekly volume | How many portions are sold per week |
| Weekly margin loss | The pound value you are losing by being below target |
Example:
| Recipe | Current GP% | Target GP% | Gap | Volume/week | Weekly loss |
|---|---|---|---|---|---|
| Classic Burger | 62% | 68% | -6% | 200 | £72.00 |
| Club Sandwich | 60% | 68% | -8% | 85 | £54.40 |
| Soup of the Day | 64% | 70% | -6% | 60 | £21.60 |
The "Weekly loss" column is powerful - it translates percentage points into actual money. Seeing that the burger is costing you £72 per week (£3,744 per year) in lost margin makes the problem concrete and actionable.
Taking action on low-margin items
For each low-margin recipe, you have several options:
- Increase the selling price - the most direct solution. Even a small increase can close the gap.
- Reduce the food cost - use smaller portions, swap to cheaper ingredients, or find a cheaper supplier.
- Accept the margin - some items are loss-leaders that drive footfall. If the burger brings people through the door, a 62% GP might be a deliberate strategy. In that case, adjust the target GP% to reflect this.
- Remove from the menu - if a dish has low margin AND low volume, it may not earn its place on the menu.
Typically, 20% of your menu items generate 80% of your margin loss. Focus your energy on those few items rather than trying to optimise everything at once.
Margin trends
The Margin Analysis page includes a trends view that tracks your margins over time:
Overall GP% trend
A line chart showing your weighted GP% week by week (or month by month). This is one of the most important charts in CostingBrik because it tells you whether your profitability is improving, stable, or declining.
Look for:
- Downward trend - ingredient costs may be rising faster than your menu prices. Review and adjust.
- Seasonal dips - some businesses see margins tighten in summer (when premium produce is used more) or in December (with special menus and higher-cost ingredients).
- Step changes - a sudden drop might correspond to a specific event, such as a major supplier price increase or a new menu launch.
Category-level trends
View margin trends broken down by recipe category. This helps you spot which parts of your menu are improving and which are under pressure.
Example insights:
- "Our drinks margins have been stable at 79% for 6 months - no action needed."
- "Food mains have dropped from 69% to 64% over the last quarter - we need to investigate."
- "Dessert margins improved by 3% since we switched to the new pastry supplier."
Individual recipe trends
Drill into any specific recipe to see how its GP% has changed over time. This is particularly useful for your highest-volume items.
POS integration for true margins
For the most accurate margin analysis, connect your POS system to Brikly. This enables:
Actual sales mix
Instead of estimating how many of each dish you sell, Brikly pulls real transaction data. This gives you precise weighted GP% figures.
Revenue data
With actual selling prices from the POS (including any discounts, promotions, or upsells), Brikly can calculate your true realised GP% - not just the theoretical GP% based on menu prices.
Time-based analysis
POS data lets you analyse margins by:
- Day of the week - are your margins different on weekends vs weekdays?
- Day part - is lunch more profitable than dinner?
- Month - how do seasonal menus affect your overall margin?
Margin Analysis works without a POS connection - you just need to enter estimated sales volumes manually. The insights are still valuable; they are simply based on estimates rather than actual data. You can update your estimates periodically as you learn more about your sales patterns.
Exporting margin reports
You can export your margin analysis as:
- PDF report - a formatted document suitable for management meetings or stakeholder updates. Includes charts, summary tables, and key insights.
- CSV data - raw data for further analysis in Excel or Google Sheets.
To export, click the Export button at the top of the Margin Analysis page and select your preferred format and date range.