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Octopus Twin

Food service · Method5 November 20262 min read

What did one kilogram of rice earn?

Ingredient-level profit attribution for a restaurant group: an explicit rule, reconciled to the cent, and how it found a margin leak.

Restaurants know what a dish sells for and roughly what it costs. They rarely know what an ingredient earns — and that is where margin leaks hide: a supplier change, a heavier hand at the wok, a promotion that moved the mix.

The ingredient twin

The Restaurant Digital Twin links 90 days of transactions across five stores to 60 recipes, 120 ingredients, 15 suppliers, purchase orders, waste, labour and inventory. For any ingredient it answers four questions:

  1. Where did it go? One kilogram of rice, split across every dish it was plated into.
  2. What did those dishes earn? Revenue of the dishes, net of GST.
  3. What profit belongs to the rice? Contribution profit allocated by an explicit, switchable rule — by cost share, by quantity, or equal share.
  4. What did it cost? Weighted-average cost from a perpetual inventory, not a list price.

Allocation is a modelling choice, so the twin shows the rule and lets you change it. The number moves; the reconciliation does not — 22 tests check that every allocation sums back to the P&L.

Finding the leak

In the seeded data, one store's gross margin slips by 1.7 points. The twin's alerts trace it to two causes that look unrelated in a P&L: the store started buying rice locally at a higher price, and rice usage ran 14 % over recipe. A nine-step guided demo goes from the CEO view to the ingredient, to a replenishment forecast, to an approved purchase order — and then verifies its effect on inventory.

Why a twin, not a dashboard

A dashboard reports. A twin also simulates: change a supplier price, a portion size or a promotion and see the effect on every store before committing. Because the calculation engine is independent of the data, connecting real POS, accounting and invoice feeds replaces the seeded generator without changing the logic.

Keep reading

Guide9 November 20265 min read

What is a digital twin? A plain guide for business owners

Not a 3D model and not a dashboard: a working model of your operation that can answer “what if?” before you spend the money. What it is, what it is worth, and how to buy one without buying a demo.

Have a system you want to see, question or rehearse?

Tell us about the site, the process and the decision. We will come back with what a twin could answer, which data it needs, and how fast a prototype can be in front of your team.