2013年11月6日 星期三

CH.7 Restaurant Operations - Sales forecasting

Sales forecasting can help restaurant better determine the business outlook. Although sales forecasts are probably predictions of possible sales, many restaurant owners can use sales forecasts to better anticipate needs and order products. Forecasting is very important in restaurant operation. It is to project sales and costs for short-term and long-term base on the historical data. Some forecasting is also used in scheduling employees, planning food orders, corresponding with marketing efforts.

(a) Occupancy Statistics
Cover + a guest
Number of turns= Number of covers/ number of seats

(b) Average restaurant check
= Food and Beverage Sales/ Number of Covers

(c) Adjustment method
It involves taking some prior interval as a base period and adjusting it with a certain number determined by management. For example, the percentage of general inflation in the economy is used as the adjustment factor. When introducing a new food product, a company might use the percentage of additional sales expected from a new food product as the basis of the adjustment factor.

(d) Moving average method
The average of the past four accounting periods is selected as the basis for forecasting. The length of the accounting period can be varied base on the restaurant need. Revenues for May were projected by taking the average of the preceding four months, and then compared the actual revenues of that month.

(e) Forecasting of food
Forecasting can place in purchasing orders for food, paper, supplies etc. For example, it can estimate the necessary purchase quantities of various food-related items.
-Use forecasting methods to determine forecasted sales.
-Calculate the quantity of food needed.
-To determine the amount of food needed, the ‘yield’ factor for each food item is known, is the amount of sales yielded by a unit of food. It could be sales per pound in the case of meats, or sales per bag of apples, etc.
-Yield is calculated by dividing the total sales for (say) the past week by the amount of the product used. All inventory units are changed to purchase units before ordering.

(f) Forecasting menu items
A restaurateur must know the percentage of each menu item compared with the total number of items sold.
-Taking the average number of menu items sold for the past four weeks and dividing it by the average number of specific menu items sold during that period.
-Estimating the number of guests expected for a specific day.
-Multiplying the total number of guests expected with the percentage index.
For Stable Business - Using Existing Business Calculations
Some customers will return to the same restaurant constantly. Restaurants that have these repeat customers can use retention statistics to forecast the possibility and frequency of their visit. To do this forecast, restaurants must identify those customers, record their visits and analyze the patterns. If restaurant discovers the patterns, for example, some frequent customers often visit more during winter; owners can forecast the number of customers and prepare the ingredients.

For Growth Business - Using Growth Indications
Restaurants often use growth statistics to better forecast the future sales. To use growth statistics, restaurant owner must record the sales and calculate the sales growth during a period. When restaurant owner discovers a relatively consistent pattern of growth, the owner can use this as a standard and assume the same growth for next month or several months.

For New Business - Using Trends Research
Restaurant owner just entering the market with no historical data to do their forecasting can use trend data to forecast the potential sales. The method for forecasting sales with no previous sales data is to base on the performance of similar businesses which sell similar products. Restaurant can visit the competitors, talk to their salespersons and customers and use this census data to find out how many people are the potential customers and do the sales forecasts. Finally, owner can gather a more reliable sales figure.

For Seasonal Impact: Using Seasonal History
Because season has an impact on consumers' appetites, the sales of restaurants are often fluctuated as the season shifts. For instance, some restaurants may lose some customers when weather comes warmer as many consumers will trend to dieting. By reviewing sales data from the same season in the previous year, restaurants can better forecast weather-related sales shifts.

There is no single method to forecast business. It can be creative and customized. In fact, we can do a simple calculation to figure a day's sale by using spreadsheet and formulas. We can also represent the forecast graphically with tools. We might draw a chart to help visualizing the numbers flow. We can base on these data to forecast the next week or month sale. Actually, we will review these numbers and tune them against reality. Therefore, we do not need to guess 100% correct for the long term. We just start with a reasonable guess and then keep revising.

Furthermore, we don't need the forecast to be right at the beginning because when restaurant goes on, owner can constantly improve the forecast. Based on the previous data, we can determine the next month or forecast the future sale. Most importantly, we had a first logical guess based on some data.

References
http://www.referenceforbusiness.com/encyclopedia/Res-Sec/Sales-Forecasting.html

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