Profitability Increase Potential Index Calculator

 

Your Profitability Increase Potential Index (PIPI) expresses the potential for increasing your profitability based on your targets in the key management areas:

    • Number of Customers

    • Sales per Customer

    • Visits per customer

    • Gross Profit margin

    • Expenses

     

For more information on these read how to make money in a restaurant.  You may also like to see the mathematics of  doubling restaurant profitability.

 

To use this calculator enter your current data and then enter your target increase in each area.  The model will calculate your PIPI as well as your expected Sales, Gross Profit and Net Profit.  This becomes very useful in your goal setting, budgeting and provides structure to your strategy development.

Current data

Current number of customers (per annum):

Current Sales per customer ($ per visit):

Current Visits per customers (per annum):

Current Gross Profit Margin (Expressed as %):

Expenses ($ per annum):

Projected Increases/Reductions

Instructions

Enter 10% as 10

Enter a reduction as - eg If you aim to reduce something by 10% enter -10

 

Percentage Increase in Customer Numbers:

Percentage Increase in Sales per Customer:

Percentage Increase in Visits per Customer:

Percentage Increase in Gross Profit %:

Note: if your current gross profit is 50% and you enter 10 your gross profit will i by 10% from 50% to 55%

 

Percentage Increase in Expenses:

Note: show a reduction in an expenses as a minus (-), eg -4 will reduce expenses by 4%