Founder POV: Why Blended GP Hides Margin Leaks
A single blended GP percentage hides accountability. Department-level margin visibility is where actionable control begins.
Founder, Hops
This article is adapted from a LinkedIn post by Robbie Francis, Founder of Hops.
Blended GP percentages often hide the exact place where profit is being lost.
The Core Problem
A single site-wide margin number averages very different operating realities together.
When that blended number drops, no one can prove where responsibility sits.
In most hospitality businesses, wet and dry operations behave differently and should be measured separately.
What Operators Usually Do
They report one headline GP number.
Teams then debate whether the issue sits in bar or kitchen, without structured evidence.
What Needs to Change
- Split margin by accountable departments (wet/dry as baseline).
- Track both GP percentage and contribution value (£).
- Add additional responsibility areas where needed (retail, room service, events).
- Use departmental signals before ingredient-level diagnosis.
Founder POV
“One blended number tells you something is wrong. Departmental margin tells you where to start fixing it.”
Why This Matters
Margin metrics become operationally useful only when someone can own them.
Department-level visibility turns passive reporting into active margin management.
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: Blended GPs are peppering your view of what's really happening
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