Profit is Sanity!

Dark Kitchens

The Beverage Standards Association brings you Peter’s Monday 31st January 2022 Weekly Briefing every Tuesday morning.

Monday, 31st January 2022 Weekly Report

Sales are vanity; profit is sanity; cash is reality” so the saying goes. But what are sales? Accountants try to give a clear view. But there are different views too. For instance, if you want to know how big a restaurant delivery company is, whether they are Doordash based in the USA, VK in Russia, or Deliveroo in the UK, they will headline their GTV (Gross Transactional Value, aka GMV or GOV, different names and slightly different definitions, with lots of room for confusion)

Problem with GTV

The problem with GTV is that it’s like a bank saying that its revenue is the total value of all the transactions it makes when, in fact, it only takes a tiny fraction of this value for itself. GTV isn’t inaccurate; it just isn’t true. And there are other confusing metrics too such as Like for Likes (aka LfLs, or Same Store Sales on the other side of the Atlantic) which are used as a report of growth.

Thank you for reading part of the Monday 31st January 2022 Weekly Briefing. A full edition can be found here.

Peters Monthly Report for December 2021 is now available here.

Peters Quarterly Report for October to December 2021 is available here. NEW

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