Founder POV: Clean Actual GP Before Anything Else
Before recipes and deep variance analysis, operators need one thing first: a clean actual GP built on disciplined SOP execution.
Founder, Hops
This article is adapted from a LinkedIn post by Robbie Francis, Founder of Hops.
A high GP number can look great until incomplete purchasing or transfer data proves it wrong.
The Core Problem
Actual GP is only useful when the operational inputs behind it are complete and consistent.
The core cost-of-sales logic remains simple:
Opening stock + purchases + transfers in − transfers out − waste − ending stock = actual cost of sales
If any line is missing, GP becomes unreliable.
What Operators Usually Do
Many teams jump to theoretical models too early while basic process discipline is still inconsistent across sites.
What Needs to Change
- Ensure all orders flow through the system.
- Enforce goods-received process on every delivery (arrived, processed, GRN).
- Capture waste and inter-department transfers at the point of action.
- Reconcile actual GP with finance routinely before adding complexity.
Founder POV
“None of the advanced analysis means anything until actual GP is right. Get SOPs in place, trust the number, then decide how deep to go.”
Why This Matters
A clean actual GP is the foundation for every other margin decision.
Without it, teams optimize noise. With it, teams can scale control with confidence.
About Robbie Francis
Robbie Francis is the Founder of Hops. He has spent years building and implementing hospitality technology with operators, focused on simplifying back-of-house operations across inventory and finance.
Follow Robbie on LinkedIn: linkedin.com/in/robbiefrancis
View the original LinkedIn post: Your team high-fived end of last month: 75% GP
Tags
Mentions