What is the CMV: complete guide to optimizing costs in collective meals

Mastering the Cost of Goods Sold (COGS) is fundamental to financial and operational success in the collective food sector.

This is because it is much more than an accounting metric, CMV has a direct impact on profit margins, This is essential for the sustainability of any operation.

Properly managed, COGS makes it possible to identify waste, plan purchases accurately and adjust financial strategies to optimize resources. On the other hand, neglecting this metric can lead to losses, compromise food quality and hinder sustainable growth.

In this article you will find everything you need to know about CMVfrom its definition and importance to practical tips for reducing it, such as the use of integrated systems, up-to-date technical data sheets and strategies for controlling waste.

What is CMV? Explaining the metric

The CMV is a financial metric that helps managers of restaurantes collective food establishments to evaluate the efficiency of their processes and the financial performance of the establishment.

In the context of collective nutrition, CMV refers to the direct cost of raw materials used to produce the food served. Therefore, this includes items such as ingredients purchased, inputs consumed, as well as losses and waste during preparation.

In short, it is crucial to calculate COGS in order to monitor the operational efficiency and profitability of services such as corporate eateries, schools and hospitals.

Benefits of calculating and optimizing COGS

A manager who has mastered detailed information about the CMV has a better competitive advantage, This allows them to identify and correct the imbalances that affect business performance.

For example, a high CMV may indicate wasted ingredients, an excess of leftovers or failures in menu planning and stock control.

On the other hand, a very low CMV can reveal excessive cost cuts, which compromise the quality of ingredients and negatively affect consumer satisfaction.

Therefore, understanding this metric is fundamental to balancing costs, quality and results. In this scenario, tools such as the TecFood, from Teknisa, make the CMV monitoring and optimization process more precise and efficient.

In addition, with functions that include stock control, menu planning and cost analysis, the system helps to quickly identify problems and implement strategic solutions.

Therefore, it allows you to achieve ideal balance between food quality and service profitability.

Since 1990, Teknisa has been a benchmark in the management of companies in the food sector. With its extensive experience, it develops innovative solutions and implements projects that reduce costs and optimize purchases, directly contributing to the efficient management of the Cost of Goods Sold (COGS).

Watch the video and find out more about how to improve your results with our solutions.

Importance of cost reduction and optimization of the cost of goods sold (COGS)

In food services, identifying ways to reduce the costs associated with CMV involves practices such as menu planning, the reduction of waste and the strategic purchase of inputs.

Therefore, these actions are fundamental to guaranteeing the financial health of a industrial kitchen, while preserving the quality of the food served.

Challenges in visualizing expenses and financial planning

One of the biggest challenges facing food service managers is obtaining a clear and direct view of spending.

Often, this clarity only comes after the end of the month, when costs have already exceeded the planned limits. This lack of visibility can lead to unpleasant surprises and compromising financial results of the business.

In addition, the lack of integrated planning between the budget and the values actually realized exacerbates the problem. This misalignment, especially in purchasing management and expenses, makes it difficult to make strategic decisions.

However, when the direct impact on the COGS is not considered, the results may include unnecessary expenses that compromise the financial sustainability of mass catering services.

Therefore, in order to overcome these challenges, it is essential to adopt proactive solutions that allow for more effective CMV management. Implement an integrated approach comparing the planned budget with real time figures can make a difference.

With this, managers can preventively block spending and make more informed decisions, ensuring greater financial control and avoiding excessive spending that directly affects operations.

Workflow and cost control

The implementation of a structured workflow and an efficient system for approving expenses is essential to make the cost management related to CMV.

In addition, involving managers and directors in the process ensures that the expenses incurred are aligned with the financial management, generating positive impacts on the budget.

Therefore, in the management of collective food services, some Well-defined workflows help identify critical waste points and improve operational efficiency.

Thus, the combination of organization and control makes it possible to reduce costs and optimize COGS, ensuring financial sustainability and healthy business growth.

Why calculate CMV?

As we said, in the context of collective meals, the Cost of Goods Sold refers to the total value of the foods, ingredients and inputs used in the preparation of the menus.

Therefore, this calculation includes everything from basic items to the condiments and complements required to meet the needs of each item of food served.

Now that we've understood how crucial it is to calculate COGS in the mass catering sector, let's highlight a few more benefits of this calculation:

• Cost controlThe CMV makes it possible to monitor spending on inputs, identify excesses or inefficiencies in purchases and implement corrective actions for more effective management.
• Benefit marginknowing the COGS is fundamental to calculating the gross profit margin and evaluating financial performance, ensuring the viability of the business.
• Suitable prices: CMV helps to define fair and competitive prices. Inadequate prices can lead to losses or compromise competitiveness.
• Stock management and waste reductionMonitoring COGS prevents the accumulation of perishable products and financial losses, improving operational efficiency.
• Financial planningCMV is essential for planning medium and long-term assumptions, predicting future needs and allocating resources strategically.
• Decision-making: based on CMV and other metrics, managers make more informed decisions about menus, suppliers and purchasing strategies.

So, as we can see, calculating the CMV is essential for the success and sustainability of collective food services, because details operating costs, promotes financial efficiency and balances quality and profitability.

Periodic monitoring: the basis for calculating COGS

Effectively calculating the CMV in mass catering services requires an constant monitoring of all operational areas. This includes monitoring the entry and exit of invoices, as well as detailed control of input consumption and losses during production.

Therefore, in the collective food sector, the CMV reflects the cost of the raw materials actually used to produce the food, not just the stock.

This is because this calculation takes into account factors such as waste, leftovers and breakages during preparation, as well as being strongly influenced by the technical specifications of the preparations.

Therefore, by focusing on the actual consumption of ingredients, the CMV offers a more precise and functional view of operating costs.

Step by step to calculate the CMV:

• Establish analysis period: Choose a specific time interval to calculate the CMV. This allows you to evaluate the financial and operational performance of the food served during the period.
• Collecting input purchases: Record all purchases made during the period, taking into account food and non-food items used in production. Include detailed information on suppliers and materials purchased.
• Calculating initial stock: Identify the total value of the stock of inputs available at the start of the period, including food already stored and auxiliary inputs.
• Incorporate losses and waste: Record losses due to handling, leftovers and breakages during food production.
• Calculate final stockDetermine the value of the remaining stock at the end of the analyzed period, taking into account the unconsumed inputs.
• Apply the CMV formula: Use the formula adjusted for the sector: CMV = Total purchases + Initial stock - Final stock - Losses and losses.

In other words, calculating the CMV in collective meals guarantees a more accurate view of costs and promotes strategic decisions to optimize resources, reduce waste and ensure the financial sustainability of the service.

Specificities of CMV in collective meals

In addition to basic data such as initial stock, purchases made and final stock, it is essential to take this into account:

• Losses and waste: Leftovers and breakages during the handling or preparation of food so that the calculation represents the actual consumption of inputs.
• Technical data of the preparations: The use of detailed technical sheets helps to predict the exact cost of each food item, including the appropriate portioning and control of ingredients.
• Menu planning: Well-planned menus with optimized inputs have a direct impact on COGS, reducing costs and improving efficiency.

Practical example:

Let's imagine that an industrial kitchen has an initial stock of R$ 40,000 and makes purchases worth R$ 20,000 during the month.

At the end of the period, the remaining stock is R$ 30 thousand and the recorded losses total R$ 5 thousand. Applying the formula:

CMV=40.000+20.000−30.000−5.000=25.000

In this case, the Cost of Goods Sold would be R$ 25 thousand, already adjusted to reflect operating losses.

Discover how to optimize CMV

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Is there an ideal CMV for collective food services?

This is a common question when it comes to managing industrial kitchens and corporate eateries. However, there is no universal answer, since the cost of goods sold ideal depends on the particularities of each operation, such as the type of food served, the target audience and the scale of production.

The ideal CMV according to experts

According to SEBRAE (Servicio Brasileño de Apoyo a las Micro y Pequeñas Empresas), the ideal CMV for food establishments generally ranges between 30% and 40% of income.

Therefore, staying within or below this range is considered positive, while exceeding it may indicate risks to the financial health of the business.

Leandro de Assis, commercial director of Teknisa, shares an enriching perspective on the subject. For him:

“An effective CMV remains in line with the predefined target, with minimal variation margins. The manager must monitor the CMV on a daily basis, and a reliable system is essential to help him do so,” says Assis.

However, it also highlights the importance of monitoring CMV fluctuations over time:

“When the CMV varies constantly and the results show significant differences from day to day, this can be indicative of management problems, which require an analysis and immediate action,” says Assis.

How to keep CMV within target?

How Ideal CMV it is not a fixed number, but a value aligned with the targets set for the collective food service, and it is essential to keep it within the desired parameters:

• Constant monitoring: Monitor CMV periodically to identify possible deviations and act quickly.
• Use of reliable tools: Specialized systems, such as Teknisa software, help you to obtain accurate data, monitor trends and carry out detailed analyses.
• Data-based management: Making decisions based on concrete information ensures that CMV is always aligned with financial and operational objectives.

Therefore, keeping the Cost of Goods Sold within a predefined target is a challenge that requires attention, planning and the use of appropriate tools.

This is because a stable and well-controlled CMV not only promotes financial sustainability, but also guarantees operational efficiency and the quality of the services provided.

Identifying problems with the CMV

CMV is a sensitive indicator that can reveal operational or strategic problems in mass food services. A very high index may indicate:

• High prices when buying inputsInadequate negotiations or lack of planning can increase costs.
• Excessive waste in the kitchen: Leftovers, breakages or incorrect portioning compromise efficiency and increase costs.
• Goods out of stock: Inventory control failures can cause significant economic losses.

On the other hand, a very low index can also be a sign of problems, for example:

• Use of low-quality raw materialsLa reducción excesiva de costos puede comprometer la calidad de las comidas servidas.
• Final product below expectationsFood that doesn't satisfy the customer's needs can negatively affect the consumer experience.
• Final price above market: A disproportionately expensive menu can alienate customers and reduce competitiveness.

COGS and profitability in food services

CMV is an essential metric for evaluating the profitability of corporate eateries, industrial kitchens and other food services.

In this way, the CMV value of the gross income from operations remains, managers can understand the gross profit generated by each food item the service offered.

Attention: Its collective food service is unique and its figures reflect the specificities of its operation.

Therefore, when evaluating the CMV, factors such as the profile of customers, the type of food offered and internal processes must be taken into account.

Don't know where to start? Consider the average CMV of the mass catering sector and apply it to the production costs of its preparations. This approach offers a starting point for better understanding and controlling the index.

Tips for improving CMV control

Now that we understand the importance of monitoring the Cost of Goods Sold, here are some proven strategies for efficiently reducing and managing this index in corporate food services:

Tip 1 - Plan your purchases

A poorly planned purchase has a direct impact on the CMV result. Therefore, it is essential to analyze the cost of each item and qualify its suppliers. This practice guarantees the use of quality raw materials, which is essential for the efficiency of the service.

Therefore, during the quotation process, evaluate different brands and prices. Knowledge is crucial at this point, since the characteristics of the products can influence performance and the final cost.

Cíntia Rios, Teknisa's Market Manager, points out that the lowest price is not always the best option:

“Certain types of rice, for example, have different yields. Choosing the product that offers the best result, even if it costs a little more, can be more advantageous.”.

However, it also highlights the importance of analyzing specific losses, such as frozen meats:

“It is essential to evaluate the amount of water that is released after defrosting. You may be paying more for the ice than for the meat. This type of control, known as loss after cleaning, also applies to meat and fruit and vegetables.”.

Pay attention to the qualification of suppliers

When choosing suppliers, consider the correction factor of each product. Therefore, avoid those that offer low quality merchandise, as this can compromise not only the CMV, but also the efficiency and quality of the service.

Strategically planning purchases, qualifying suppliers and understanding the characteristics of inputs are essential steps for optimizing the Cost of Goods Sold.

Therefore, by applying these tips, managers can reduce costs, avoid waste and ensure the financial sustainability of their collective food services.

Tip 2: Reduce waste

Waste is a reality in many collective food services, which has a direct impact on COGS and profitability.

Therefore, to combat this, it is essential to implement control and optimization strategies, such as calculating the leftover food, which helps to identify where the greatest losses occur and allows you to act assertively.

Strategies to reduce waste in collective meals:

• Centralized planning: Use seasonal products to save money and maintain quality.
• Custom production: Avoid producing or buying more than you need.
• Constant monitoring: Observe, analyze and measure consumption to identify areas for improvement.
• Management with feedback: Use software to manage orders and apply satisfaction surveys.
• Adoption of intelligent methodologies: Implement good practices, reduce costs and avoid leftovers.

Tip 3: Keep technical data sheets up to date

La food factsheet is an indispensable tool in the management of mass catering services. This is because they contain essential information, such as the necessary ingredients, their exact quantities, possible substitutes and the way each food is prepared.

Therefore, keeping technical data sheets up to date allows for more efficient management, helping with stock control, proper price setting and recipe standardization.

In addition, these tools are also useful for aligning the work of the kitchen with the financial and operational objectives of the business.

Tip 4: Use technology to your advantage

The adoption of management software is one of the most efficient ways of calculating and controlling the Cost of Goods Sold (COGS) in collective food services.

In this way, these systems integrate all areas of the operation, from the registration of invoices to the comparison of purchase orders and consumption of inputs.

Therefore, technology offers several advantages by automating and centralizing operational processes, making the calculation of COGS more accurate and efficient. Among the main benefits are the following:

• Complete history: The software uses a detailed history of all the stages of the production process, offering a broad, integrated view.
• Personalized reportsIt is possible to issue reports according to the needs of the operation, optimizing cost and performance analysis.
• Precise stock control: The system cross-references the information on the goods with the technical preparation sheets and sales levels, ensuring detailed tracking.
• Automatic generation of the shopping list: Considers stock levels, average sales and technical data sheets, optimizing the planning of input purchases.
• Automatic calculation of COGS: Based on the data recorded in the system, it eliminates manual errors and provides greater precision.
• Complete sales management: Allows tracking of all sales made during the period, helping the manager to make strategic decisions.

What happens if there is no system?

Although the plans may seem like a practical solution at first, this approach has several long-term limitations.

This is because the plans are susceptible to human error and require additional time to maintain and may not contain all the information needed to correctly calculate the CMV.

In addition, for managers who run several eateries or industrial kitchens, controlling everything manually can become a complex and costly challenge.

Therefore, lack of integration can hinder strategic decision-making, This has a negative impact on the efficiency and profitability of the operation.

On the other hand, technology, through management software, is transforming the way in which CMV is managed in mass catering services.

With automated data, precise information and an integrated view of the operation, managers can make faster and more strategic decisions, promoting greater efficiency and cost reduction.

Real savings with a management system

An integrated system also helps to identify unnecessary expenses and generate significant savings.

This is because even small price increases (like 5 cents per item) can significantly affect CMV, This requires adjustments to invoicing or prices.

In this way, management software detects these small deviations that could go unnoticed in manual processes.

And, with the complete calculation of the financial movement, it is possible to compare cost variations with planned income and adjust operating strategies, maintaining the service's financial equilibrium.

Therefore, integrated management systems are indispensable tools for managing the Cost of Goods Sold in collective food services.

With advanced functionalities, they offer detailed control, reduce waste and ensure strategic decisions based on reliable data. Therefore, adopting technology means investing in the efficiency and sustainability of your business.

Thanks, Teknisa!

If you still don't know who to count on to reduce your Cost of Goods Sold, ¡cuente con Teknisa! In short, we have been operating in the Food Service market for over 35 years, offering technological management solutions that promote operational efficiency and cost reduction.

This is because our Cost Reduction Service is based on comparative parameters of competitiveness, analyzing Process failures vs. Control failures to identify opportunities for improvement and optimization.

Why choose Teknisa?

Teknisa not only reduces costs, but also improve the financial and operational performance of your business. In this way, our experience in the collective meals market and our commitment to customized solutions guarantee results that set us apart.

Therefore, whether to optimize CMV Teknisa is the ideal partner to transform the management of your business.

Benefits of partnering with Teknisa

The results obtained with Teknisa reflect the synergy between well-defined processes and the strategic use of specialized management software.

In this way, through the integration of systems and best practices in the sector of collective meals, it is possible to achieve a more efficient management of resources, promoting a significant reduction of the Cost of Goods Sold (COGS).

In short, the combination of Teknisa Service's experience, its technological tools and the best market practices results in more intelligent, results-oriented management.

Overcoming the “complex process” with an integrated system

One of the most common challenges facing food services is dealing with a fragmented infrastructure made up of different third-party systems.

Therefore, this scenario known as the “complex process” can make it difficult to analyze data and compromise strategic decisions due to the lack of integration between platforms.

With Teknisa, this reality is transformed. Our integrated systems eliminate the need for external tools, centralizing all operational data in a single location.

In short, from stock control to sales follow-up and the financial management, The coherence of the data is guaranteed, minimizing errors and maximizing efficiency.

Reliable and accurate data: the cornerstone of good management

Having an integrated system from A to Z also allows you to optimize management at every stage of the operation. Centralizing information on a single platform offers benefits such as:

• Data consistencyeliminates discrepancies between systems and reduces the risk of human error.
• Agile and accurate data analysis: Allows strategic decisions to be made based on reliable information.
• Resource optimizationIdentifies consumption trends, improves input allocation and increases operational efficiency.
• Improved customer experience: the consolidated data helps to improve customer service and the services offered.

This approach turns data into the backbone of successful business strategies, empowering managers to overcome challenges and achieve superior results.

Long-term savings with an integrated system

In this way, as well as reducing operational complexity, the elimination of third-party systems generates significant long-term savings.

An integrated system like Teknisa reduces costs, improves efficiency and boosts growth opportunities, resulting in more profitable and sustainable operations.

However, Teknisa systems not only automate processes, they also increase revenues and optimize costs in collective food services.

Our technology collaborates directly in the calculation of COGS and provides essential information for strategic decision-making, ensuring that your operation is always in line with the best market practices.

Simplified CMV management with Teknisa

With Teknisa's systems, managing the Cost of Goods Sold becomes much easier and more efficient. This is because our fully integrated solutions automatically record all input purchases, accurately control stock and automatically calculate CMV.

This provides a clear and detailed view of the direct costs associated with food production in mass catering services.

Performance comparisons for power networks

Teknisa's solutions also facilitate the analysis of individual performance in food chains or industrial kitchens.

This makes it possible to compare results and identify units with the best performance. In this way, successful practices can be replicated throughout the network, promoting uniform and sustainable growth.

Conclusion: Transform your management with efficient CMV control

Now that you understand the importance of the Cost of Goods Sold (COGS) and how it directly affects the financial health and operation of mass catering services, it's time toand put into practice the strategies presented in this article.

Control over COGS goes far beyond a financial metric; it is a crucial indicator for identifying waste, better planning purchases and adjusting processes that are reflected in food quality and customer satisfaction.

Teknisa, with its experience of more than 35 years in the sector, offers the tools and solutions needed to transform the management of your business.

Integrated systems such as Tecfood can automate processes, centralize data and provide a clear and detailed view of operating costs, promoting more efficient and sustainable management.

Make sure you explore the possibilities that technology can bring to your operation. Contact Teknisa and find out how our solutions can help you achieve even better results, balancing costs, quality and profitability.

Are you ready to take CMV management to the next level? Start transforming the future of your business right now!