The digitization is reshaping our eating industry. Many businesses are making use of data in order to acquire the best strategies. There are some people who are doing that just the best way possible, and that allows them to extract the best insights.
What does Restaurant Data Analytics mean?
There are many ways a restaurant can collect data from their customers. The data could either sit untouched, or it could be used to deduce some meaningful insights that generate a significant profit margin. It can help in little things like how to train your staff according to the needs of your customers to redesigning the menu to appeal to the masses.
It is not just about comparing profits and sales; it is more about the reasons why your business is generating the profits and sales that it is. These analytics are beneficial if you want to dive further into the causes of your business to perform a certain way.
Restaurants and Big Data
What is meant by big data?
The software solutions that a restaurant is using is capable of generating large amounts of data. This is called big data. It starts to form the orders and a person’s preferred method of payment. The bigger the restaurant, the more important it will be to manage and analyze big data.
As far as smaller restaurants are concerned, they do not have to worry about big data as much. However, what they should be concerned more about is the usefulness that can be found in the data produced by their POS.
How can Data Analytics be Responsible for Improving Revenue?
If you choose to pay attention to the data that is collected by the software of your restaurant, you will be able to make significant improvements in your revenue generation. Various restaurant management software include an intricate data analytics system to help you make informed decisions. For example, if you evaluate metrics like revenue per server, you might be able to pinpoint the issues in staffing.
If anyone of the servers is capable of generating a reasonable amount of revenue throughout a week, but you notice a dip only for a few hours, you can work on identifying the root cause of loss. You will also figure where you need to employ additional workforce.
The analysis that is generated due to CRM can also be used to identify the reasons for certain items selling well and the other not making the cut, who ordered what, and many other things. You can improve your menu a great deal by using all this information.
You can also do this. When you know which food is the most popular one in your restaurant, that is being consumed more; you will be able to put it into your marketing campaigns. And these are only just a few benefits that data analysis can bring you; there are way more.
Currently, the restaurants that are big on analyzing big data are using it for the following purposes:
- Improvement of operations
- Consumer profiling
- Sales forecasting
- Optimizing table turnover
- Repeat customer trends and the lifetime value
Profit range is, without a doubt, quite thin if you are running a restaurant. So, anything that you get which indicates that your business can be improved in such and such way is valuable.
Predictive Analysis and its role in Restaurants
Predictive analysis is a term used for the process in which you look at the trends of the past in order to predict the possible future. This approach is not just handy for businesses, but for restaurants as well. Restaurants can use this to:
1. Improve the accuracy of order:
When you have a deeper insight as to what do your customers tend to order at what times and on which occasions, you will be able to reshape your orders accordingly. The stock of supplies that you have will neither be too much or too little that way.
2. Minimize the waste of food:
As I have mentioned in the point above, you are likely to order both, either too much or too little food if you don’t know what your customer is likely to eat. If you order too much, and they don’t get used, they are likely to go to waste. However, if you order precisely what is meant for the need of the hour, you won’t have to waste anything.
3. Forecast the trends:
If you make use of the predictive analytics, you will not only be able to see what your customers are going to order for the day, but you will also be able to see where you will be in the next few years. You can compare the previous data with the current numbers to do so. By doing that, you will be able to recognize and implement the strategies that are good for your restaurant in the long run.
With so much data existing right under our nose, it is only fair that we start putting it to good use. These data analytics will take your restaurant where it needs to be.