What Is the Profitability Matrix?
The Profitability Matrix is a simple but powerful tool we use within the PERI framework to give a quick indication of whether a venue is tracking towards profit in any given week.
Rather than waiting for a monthly P&L, the matrix looks at three key indicators:
- Sales (forecasted vs. actual)
- Wages (weekly and daily % against sales)
- COGS (weekly % against sales)
By combining these, the matrix provides a clear signal — profit, breakeven, or loss — so you know where to focus before the week ends.
Why Monthly P&Ls Are Too Slow
Traditional monthly reports tell you what already happened — and by the time you see the numbers, it’s too late to act.
The Profitability Matrix, on the other hand, gives you weekly insight into whether you’re tracking toward profit or falling behind. If wages or COGS are creeping over target midweek, you can adjust immediately, not after the damage is done.
How We Use the Profitability Matrix in PERI
In the Results phase of PERI, the matrix is reviewed every week. It highlights:
- Daily wages vs. sales for the previous and current week.
- Weekly COGS vs. sales.
- A simple profit indication — green (profit), amber (breakeven), or red (loss).
This clarity helps managers and chefs see performance at a glance and take action where it matters.
A Real Example: Courthouse Hotel
At the Courthouse Hotel, we’ve been using shift planning rules based on bookings to ensure staff are rostered where they’re needed most.
Previously, rosters were built the same way each week, regardless of bookings. With the Profitability Matrix and daily tracking, we saw that adjusting shifts to match trade would significantly improve our weekly profit indication.
By refining shifts:
- Wages have reduced.
- Profitability has improved.
- Staff are working more efficiently where they’re needed most.
The matrix shows these improvements week by week — encouraging the team to keep fine-tuning.
Why It Works
The Profitability Matrix works because it’s:
- Simple — Focuses on the core indicators.
- Fast — No waiting for accounting reports.
- Actionable — Highlights where adjustments can protect profit.
When combined with PERI’s weekly rhythm, it creates a proactive, profit-focused culture.
Want to See How This Works in Your Venue?
We’re currently booking Discovery Calls with venue owners and managers who want to understand how the PERI framework and Profitability Matrix can improve weekly profit.
Book Your Free Discovery Call Today
In just 15 minutes, we’ll walk through how you’re currently tracking profit — and show you how to apply the weekly rhythm that drives results.