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Cafe Chain Menu

The document analyzes POS data from a cafe chain to provide recommendations to increase revenue and launch a loyalty program. Key findings include that Saturday sales are 20% higher than other days, late afternoons to midnight see 85% of revenue, and tobacco and liquor items make up 50% of revenue. Recommendations include introducing combo offers of tobacco with food or food with beverages to boost revenue by up to 21 or 18 lacs respectively, changing opening hours to save on staffing costs while maintaining 99% of sales, delisting underperforming menu items, and promoting food offerings alongside tobacco through discounts and collecting customer data to enable a more effective loyalty program.

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shankar b
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46 views2 pages

Cafe Chain Menu

The document analyzes POS data from a cafe chain to provide recommendations to increase revenue and launch a loyalty program. Key findings include that Saturday sales are 20% higher than other days, late afternoons to midnight see 85% of revenue, and tobacco and liquor items make up 50% of revenue. Recommendations include introducing combo offers of tobacco with food or food with beverages to boost revenue by up to 21 or 18 lacs respectively, changing opening hours to save on staffing costs while maintaining 99% of sales, delisting underperforming menu items, and promoting food offerings alongside tobacco through discounts and collecting customer data to enable a more effective loyalty program.

Uploaded by

shankar b
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
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Caf� Chain Business Analysis -Retail and Marketing in Business Analytics

Assignment: Problem
� The data set provided constitutes the data of a Caf� Chain for one of its
restaurants. We need to do a thorough analysis of the data and come up with the
following analysis:
� Exploratory Analysis
� Menu Analysis
� Price Analysis
� Objective
� Executive Summary and key findings
� Exploratory analysis
� Price Change analysis
� Menu delisting
� Mix menu analysis and Combo offer
� Conclusion/Recommendation
� The owner of the restaurant wants to use his POS (point of sale) data to come
up with a set of recommendations that can help his Caf� Chain increase their
revenues and launch loyalty program for customers. We do not have customer level
information and have only POS data for one of the chains.
Executive Summary and key findings
� One-year data: Analysis is performed on single financial year data starting
1st Apr 2010 to 31st Mar 2011 for the Caf� Chain.
� No Significant trend/seasonality visible- analyzing monthly/weekly level
data, constant variation is prominent. Saturdays has more sale compared to other
days of week (On avg. 20% more sale on Saturdays)
� Day of week and Hour of day analysis suggests � Caf� opening hours can be
changed from almost 24hrs to 16-17hrs (10AM to 2AM) with total sale compromise of
just 0.2% Rs.55K p.a. Two shifts of 8hours each recommended (10AM to 6PM and 6PM to
2AM)

> Late afternoon to midnight till 2AM sees maximum sale


(85% of total revenue )
> Almost 50% of total revenue is generated from tobacco
(hookah) and liquor items.
� Combo offers � TOBACCO, FOOD and BEVERAGES are most selling categories for
caf�.
> At present, caf� has few combos with Liquor and Tobacco categories but none
with Tobacco + Food and Food + Beverages.
We recommend �
> By Introducing Tobacco + Food combo yearly revenue can be boosted by up to
21lacs*
> By Introducing Food + Beverage combo yearly revenue can be boosted by up to
18lacs*

Conclusion/Recommendation
� 39.9 % of total transaction is solo trips and mostly Tobacco which is
alarming.
� Introduction of Combo offers will be game changer to move traffic towards
food and Beverage and not only tobacco.
� Caf� can save resourcing fees/salary by changing Caf� opening hours as per
day analysis
� There are many menu items hardly called and needs to be delisted to save
preparation cost and time.
� To promote caf� as food joint too - Offer discounts for higher spent on food
items group discounts, corporate discounts etc.
lastly � To implement loyalty program more effectively, caf� needs to start
collecting customer details

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