USA Wine Inventory Help

[Cesar Hernandez]

I'm helping a small restaurant business in my town to see if their wine sales are helping them make a profit at full potential. I am pretty novice when it comes to accounting, and am having trouble interpreting the data to its full capabilities.

The data I have consists of: wholesale prices, inventory of wine from 6/25-7/2, sales of wine through those dates.

I have a feeling this is all I really need, I've started an excel spreadsheet tallying up the difference in inventory of wine, the value of those at wholesale cost, the sales through the POS system, and the net profit after subtracting the wholesale cost.

Anyway, it feels as if I'm off to a good start, but feel free to share if there's something I'm missing or any suggestions on what to do next.

 

[smallbushelp]

I think you may be going about your analysis the wrong way. The question should not be "if their wine sales are helping them to make a profit," but "how much of a profit do they want or need to make on their wine sales." This really isn't an accounting issue, in my opinion, but a pricing or marketing one. Maybe you should do some research on how restaurants price wine.

My experience has been that restaurants mark up their wine by 200 to 300 percent. So there is definitely profit in wine sales. The analysis should be done before selling, not after.