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However, even if the POS system is extremely important in determining customer features, the information provided by this system does not suffice in making accurate sales forecasts. Therefore, the information from the POS system is combined with information provided by statistics that refer to production costs, prices introduced by suppliers, and macroeconomic forecasts.
There are numerous variables that can be used in estimating daily sales. Given the fact that the company's activity is focused on its customers, variables regarding them are the most used predictors of daily sales in the restaurant industry. Such variables that apply to customers are represented by the age, the gender, the lifestyle, the incomes, preferences regarding music, clothes, food, drinks, leisure time of customers. Some of this information can be gathered by the POS system, but other information mentioned above must be obtained from customers, if they approve with it. Therefore, the company can develop questionnaires or surveys administered through the Internet or at the Hard Rock locations.
This allows the company to determine the main customer segments it addresses. Based on the preferences of these customers, Hard Rock Cafe can establish its strategy, expand its range of products and services, or develop a price range that is suitable with these customer segments. The company must take into consideration the fact that the information provided by these variables can be quite different from one country to another.
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For example, weather conditions have been observed to significantly influence the activity of restaurants and of other similar service providers, and most restaurants take them into consideration in their daily sales estimations. Entertainment events are also important in determining these sales, because they can increase the activity of restaurants, or can become indirect competitors, determining Hard Rock Cafe to adapt its strategy to such events. The same situation applies to holidays.
In addition to this, each cafe must study the demographics of the city it is located in. This allows them to determine the evolution of the average number of customers. Combined with other statistical data, the company can estimate the behavior of these customers-based o their education, incomes, and others. The business activity in the area where the cafes are located is also important in determining the sales of the company.
Reference list:
1. Devcic, J. (2011). Weighted Moving Averages: The Basics. Investopedia. Retrieved March 15, 2011 from http://www.investopedia.com/articles/technical/060401.asp#13002055845312&close.
2. Regression Analysis (2011). Value-Based Management. Retrieved March 15, 2011 from http://www.valuebasedmanagement.net/methods_regression_analysis.html.
3. McCarthy, M. (2011). The Benefits of Moving to a Point of Sale System. Retrieved March 15, 2011 from http://www.allbusiness.com/retail/10206841-1.html.
1. Devcic, J. (2011). Weighted Moving Averages: The Basics. Investopedia. Retrieved March 15, 2011 from http://www.investopedia.com/articles/technical/060401.asp#13002055845312&close.
2. Regression Analysis (2011). Value-Based Management. Retrieved March 15, 2011 from http://www.valuebasedmanagement.net/methods_regression_analysis.html.
3. McCarthy, M. (2011). The Benefits of Moving to a Point of Sale System. Retrieved March 15, 2011 from http://www.allbusiness.com/retail/10206841-1.html.
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