Savanna Restaurant in Nairobi's CBD increased profit margin from 28% to 36.4% (30% improvement) after implementing Royalmark POS. The restaurant owner, Chef James Omondi, used sales analytics to optimize menu pricing, reduce food waste, and identify profitable vs. unprofitable items.
The Profitability Challenge
Before Royalmark, Chef Omondi had limited visibility into which menu items were profitable. Some dishes had high food costs but low margins. Food waste was high because he didn't know which items sold best. Monthly revenue was KES 1.2 million, but profit was only KES 336,000 (28% margin).
Data-Driven Menu Optimization
Royalmark POS analytics revealed:
- Which dishes had highest profit margins
- Which dishes sold most frequently
- Peak sales times and days
- Food cost percentages per item
- Waste patterns and opportunities
Optimization Actions:
- Increased prices on high-demand, low-margin items (+8%)
- Promoted high-margin items through menu placement
- Reduced portion sizes on high-cost items
- Eliminated 3 low-margin dishes
- Reduced food waste by 25% through better forecasting
Results: 30% Profit Margin Increase
Revenue increased to KES 1.3 million (better pricing), while costs reduced (less waste, optimized menu). Profit increased to KES 473,200 (36.4% margin), up from KES 336,000 (28% margin)—a 30% improvement in profit margin.
Waste Reduction
Sales data enabled better forecasting. Chef Omondi now prepares quantities based on actual demand patterns, reducing food waste by 25%. This saved KES 45,000 monthly in food costs.
Conclusion
POS analytics enabled 30% profit margin improvement through data-driven menu optimization and waste reduction. For restaurants in Nairobi and across Kenya, analytics are essential for profitability.
