Sometimes also referred to as Financial Periods or Financial Accounting Periods, are the frequency that a business creates its financial statements and business performance reports shared with the Management Team and any Investors in the business.
Common Accounting Periods are calendar monthly, a 4,4,5-week pattern or a 4,5,4-week pattern. Tenzo can support any Accounting Period pattern.
= (Opening Inventory Count qty + Purchases qty - Closing Inventory Count qty) x item cost
The total cost of an inventory item that was used within a defined period of time.
The inclusion of a menu item on a customer transaction.
For example, if there were 20 transactions in a day and five of these included burgers the attachment rate for burgers would be (5/20)*100 = 25%
Average Transaction Value
= (Total of all transactions within a defined period of time) / Total number of transactions
The average amount that a customer spent per transaction within a defined period of time.
|Average Spend per Guest
= (Total of all transactions within a defined period of time) / Total number of guests
A metric normally used by eat in restaurants where guest numbers are recorded, this is the average amount that was spent by one guest within a defined period of time.
The estimated performance of a business including sales and expenditure for a set period of time. Budgets are often set annually for the hospitality industry, but re-budgeting occurs where exceptional circumstances occur.
Within Tenzo we support budgets for sales at a location level only at the moment.
Cost of Goods Sold
= (Opening Inventory Count quantity + Purchases quantity + Transfers In quantity - Transfers Out quantity - Closing Inventory Count quantity ) x item cost
The cost of all inventory items sold within a defined period of time. To calculate your COGS you will need to have an inventory count for the item(s) sold at the start and end of the period you are looking at, information on all purchase made and any items transferred to a different store within the period of time and the cost of the item(s).
It is possible to calculate theoretical or actual COGS. This can be done by changing inventory counts to be theoretical or actual counts.
COGs can also be shown as a percentage of net sales.
Cost of Labour as a percentage of sales
= (Total fully loaded labour costs ÷ total net sales) × 100.
Sometimes also referred to as Labour percentage, is the amount of your total sales within a given period of time that you are spending on your workforce.
In Tenzo this refers to staff compensation or staff meals, It is a sales overhead that comes from your POS settings and can be toggled on and off to show sale with or without this included.
|A calendar day, this is most commonly 4 am - 4 am, but customers can configure in Tenzo their preferred cut off times.
In Tenzo these refer to promotional codes used to offer discounts to customers. Discounts can be at the transaction level, e.g. 10% off your bill or at the ticket item level e.g. 50% off coffees.
In Tenzo it is possible to toggle sales to show them including discounts i.e. with the discount amount deducted from the sales or without discounts i.e. adding back the discounted amount to show the original total of all items sold.
The level of discount information that is visible in Tenzo depends on the POS system used.
|Employee Scheduling System
Also known as Staff Scheduling System. A system that is used to manage your workforce. Systems normally include some form of employee management for capturing contracts and HR records, schedule management for creating rotas needed for your locations, shift management to allocate employees to rotas and time and absence management. They may also include payroll and expense management depending on the system.
Example Employee Scheduling systems include Planday, Deputy, Fourth, Harri and S4.
|End of Day / Shift Report
In Tenzo, this refers to the qualitative summary that is entered into Tenzo by a General Manager or person supervising a shift at a site.
It is possible to create a template for The End of Day / Shift Report so that there are headings for a person to use for their report or mandatory things that must be included in it. A common template is 1)Service & Front of House, 2) Food and Back of House, 3) Staff, 4) Maintenance, 5) Other.
|Forecast Error Rate
This is the percentage error in a Sales Forecast. Tenzo uses MAPE for measuring forecast accuracy - see this definition for more details.
Flash P&L -
Flash Profit and Loss
= Net Sales - Actual Labour Costs - COGS
In Tenzo it is possible to create a flash profit and loss to show a customer an estimate of their profit or loss position for a week, month, or quarter. This is called a flash P&L as this does not all costs normally included in a P&L and is therefore a rough calculated estimate to give a sense of the business performance.
The Flash P&L can be shown as a figure or as a % over net sales.
The profit a company makes after deducting the costs associated with making and selling its products or providing its services. Gross profit is calculated by subtracting the cost of goods sold (COGS) from revenue (sales).
The person who is responsible for the day to day running of a location/store to meet the KPIs set out by the head office. This normally includes being responsible for leading and training the team (front and back of house), implementing all operational processes to for example mange rotas, stock control, Health and Safety, and managing the customer experience.
The main administrative centre for a company or organisation.
In Tenzo, customers usually set up Head Office teams to have access to all locations/ sites that they have in Tenzo, whilst local teams are often given just access to the single site that they work at.
|This is one of the types of labour overheads that can be set-up in Tenzo. Holiday is applied as a % overhead on top of the cost of labour, which can be varied per type of employee i.e. hourly paid or annually salaried.
|Inventory Management System
A software package that lets you track and manage your raw materials and supplies (inventory items) through your production process from purchase, delivery to actual usage.
Example Inventory Management Systems include Marketman, Fourth and Account IQ.
= ((Actual Usage - Theoretical Usage) / Theoretical Usage) * 100
This is also known as your Actual v Theoretical or AvT, and helps you identify where you are using more or less of an inventory item then you had planned to.
Last Seven Days
In Tenzo this refers to the last seven calendar days.
For example, if you are looking at your actual labour cost for the L7D on a Tuesday, this will look at the costs from yesterday, Monday through to Tuesday of last week.
Additional costs that an employer must pay over and above the salary of an employee.
Within Tenzo we receive labour overheads information from staff schedulers, however it is also possible to set bespoke overhead percentage rates. These can be set for national insurance, holiday accrual, pension and additional employee benefits. You are also able to easily toggle on and off to see your labour costs with labour overheads applied or without labour overheads,
|A common abbreviation to describe the cost of labour as a percentage of sales. Please see the COL%S definition for more details.
This is a Tenzo term that refers to the information that is needed to break down the Tenzo generated sales forecast into a recommended number of labour hours to achieve the sales forecast.
You will need to to provide the following information for each location:
|In Tenzo, comparing data to the last period refers to comparing your accounting period's performance with the last closed accounts period's performance.
|Also known as the End of Day Report Log, this is a feature in Tenzo where all qualitative reviews for how a sales day went at a single location are stored. Log Books are searchable, so if you have access to more than one location you are able to search for common words or themes that are included in entries.
Last Week 4/6/12 Weeks
In Tenzo, comparing data to last week or a number of weeks back historically means comparing the same day of the week or days' with data from either last week or the average for that day of the week over the last 4/6/8/12 weeks.
For example, comparing sales from Monday 22nd - Tuesday 23rd June with LW will look at the sales for the Monday and Tuesday from the week prior. Comparing 22nd - 23rd June with the L8W would, therefore, look at the average sales for the 8 last Mondays and Tuesdays.
In Tenzo comparing data to last year means comparing this to the same day of the week or days' of the week 365 days ago.
For example, comparing Wednesday 24th June 2020 (the Wednesday of the 26th week in 2020) with last year will look at the Wednesday in week 26 of 2019 which was Wednesday 26th June 2019.
Mean Absolute Percentage Error
The mean absolute percentage error (MAPE) is the mean or average of the absolute percentage errors of a forecast. This is the calculation used to determine the accuracy of Tenzo Forecasts. The smaller the MAPE the better the forecast.
Next Seven Days
In Tenzo this refers to the next seven calendar days.
For example, if you are looking at your planned labour cost for the N7D on a Tuesday, this will look at the costs from the next day, Wednesday up to and including Tuesday the following week.
Next 1 Week
In Tenzo this refers to the next one week.
For example, if you are looking at your forecasted sales for the N1W, this will look at the next complete calendar week Monday to Sunday inclusive.
|In Tenzo this refers to the different ways or channels that you receive your sales through. For example eat in, takeaway or delivery.
Original Tenzo Forecast
Also known as the Tenzo Forecast, this is the sales forecast generated by the Tenzo Forecasting Engine.
The Tenzo Forecasting Engine generates sales forecasts using a business' historical sales trend information, most recent actual sales performance, along with the weather and national holiday/event information. For more information on Tenzo's AI-powered forecasting process see here.
In Tenzo this refers to the number of labour hours that have been scheduled in a staff scheduling system for a future defined period of time.
|POS - Point of Sale
The system used to capture all sales of your food and services to your customers. In a POS you can manage your menu and the price of food and services you offer, as well as track information about each transaction made by your customers including, for example, their order channel and payment method.
Example POS include iKentoo, Square, Lightspeed and Toast.
In Tenzo, these are the same as discounts. See the definition of discounts for more information.
Period to Date
In Tenzo this refers to all completed days of the current accounting period that you are operating in.
For example, if you operate monthly accounting periods and it is 25th June, your June PTD would be up to and including 24th June.
Quarter to Date
In Tenzo this refers to all completed days of the current financial quarter that you are operating in.
For example, if you operate monthly accounting periods starting from 1st January when you look at insights for the 2nd quarter to date in Tenzo, this includes all days from 1st April to 30th June.
This is the number of labour hours that Tenzo has calculated will be needed for you to achieve your forecasted sales for a defined period of time.
For Tenzo to generate a recommended number of hours you will need to provide labour rules for each location - please see the definition of labour rules for more information.
When an inventory item has to be thrown away due to preparation waste, spoilage or plate waste this should be recorded as waste in your inventory management system. Recording waste accurately is important as this will be part of the explanation for the variance in your actual versus theoretical usage of an inventory item.
|In Tenzo this refers to the different tills locations in your business - literally the different physical areas in your business where you make revenue. This could be for example a terrace, back bar and a restaurant.
This is the short-term (normally two weeks in advance, but it could be up to four weeks) estimation of the sales for a defined period of time.
In Tenzo this refers to the breakdown of your sales into percentages based on the sales insight that you are looking at - location, product division, product category, product item, order type and revenue centre.
For example, if you are looking at sales by location the sales mix for a defined period of time will show the percentage of your sales that came from each location.
This is the extra charge made for serving customers in a restaurant. This is normally a % applied to a transaction or a charge per guest / cover.
In Tenzo it is possible to toggle sales to show them including service charge i.e. having this included in the total sales figure or excluding service charge i.e. having this excluded from the total sales figure.
Spend per Head
|Also, know as Spend per Guest. Normally used by eat in restaurants where guest (head) numbers are recorded, this is the amount that was spent by one guest within a defined period of time.
Staff Scheduling System
|Another name for Employee Scheduler System.
The process of physically checking the quantity and quality of the inventory that is held. It is common practice for stock checks to happen on a weekly basis.
In Tenzo this refers to the sales forecast that has been adjusted by a Tenzo user and approved in the planning module. The submitted forecast can be adjusted up or down and a reason is captured for the adjustment.
The name given to a chef in a Buddhist monastery. Our mission at Tenzo is to bring a little more zen into hospitality businesses.
Theoretical usage is how much of an inventory item should have been used if a recipe had been followed exactly and there was no waste of the item.
= (Menu items sold x item quantity in the recipe) x item cost
Unrecorded waste happens when team members don't log that an item was wasted. It is often a reason that you may have a variance in your usage of an inventory item.
For example, if your actual closing inventory is less than it should have been if a menu was followed correctly then the difference may be a food item being wasted. If the waste hasn't been recorded then you won't know whether this was theft or just gone off tomatoes that needed to be thrown out!
|The cost of an inventory item, see also the definitions for actual usage and theoretical usage.
A void is a transaction that is cancelled before it settles through a customer's debit or credit card account, i.e. the payment for a transaction is cancelled before it is authorised by the card issuer.
In Tenzo a customer can see voided transactions if these are captured and stored by their POS.
There are three main categories of waste that food and beverage businesses typically have:
Check out Tenzo's ultimate guide to reducing food waste and keeping food costs low here.
Week on Week
In Tenzo this refers to comparing all completed days for the current week with the same days from the last week.For example, if it is Saturday and you are looking at the total purchase cost Week on Week you will be looking at the total costs for this week Monday to Friday compared to the costs from Monday to Friday or the previous week.
Week to Date
In Tenzo this refers to all completed days of the current calendar week.
For example, if it is Wednesday and you are looking at labour cost week to date you will be looking at the costs for Monday and Tuesday only.
In Tenzo this refers to comparing all completed days for the current year with the same days from the last year.
For example, if it is 15th January 2020 and you are looking at the total net sales Year on Year you will be looking at the total costs for 1st - 14th January 2020 with 1st - 14th January 2019.
Year to Date
In Tenzo this refers to all completed days of the current calendar year.
For example, if it is 3rd July and you are looking at sales for the year to date you will be looking at the costs for all sales for the calendar year up to and including 2nd July.
Zapier is a tool that connects apps and automates workflows.
Tenzo is available on the Zapier App store which means you can create 'zaps' to pull data out of Tenzo and then push into other apps listed in the Zapier store to support workflow automation. For example, pushing sales forecasts into your employee scheduling system or your sales with or without VAT