Case Study
How TUBR was able to identify the levers that lead to an accurate forecast for a restaurant, and when to pull them to increase profitability.
The Challenge
Reducing wastage and increasing profitability is essential for restaurants to survive in such a volatile economic environment. Even if you’re lucky enough to be positively featured by influencers or reviewers, there are a number of factors that can create uncertainty. Accurately predicting staffing needs, stock levels, and shifting consumer trends is difficult, as it depends on a variety of factors, including but not limited to:
- Seasonality: Demand for restaurant services often fluctuates with the seasons, holidays, and local events, making it challenging to predict customer flow accurately.
- Unpredictable Customer Behaviour: Consumer preferences can change rapidly due to trends, economic conditions, or even weather, making it difficult to forecast accurately.
- Menu Changes: Introducing new menu items or seasonal dishes can affect demand unpredictably, as it is hard to gauge how customers will respond.
- Supply Chain Variability: Fluctuations in the availability and cost of ingredients can affect menu pricing and profitability, complicating forecasting efforts.
- Competition: The entry of new competitors or changes in the local dining landscape can quickly shift customer preferences, making it hard to rely on past data for future predictions.
However, it’s not just a question of identifying the key levers involved, but understanding the weight each one has when it comes to bookings and revenue. Whether it’s a small independently owned local eatery, or a national chain of restaurants, being able to create an accurate forecast is essential for managers to make decisions on-the-go.
TUBR’s approach at a glance
TUBR was able to model localised demand trends in the restaurant’s booking data, producing actionable insights and predictions that tells the manager on duty how to make changes to meet the daily key metrics and hit break-even earlier.
