Advanced Analytics in the Restaurant Industry

For restaurant chains, keeping track of their diverse operations can become difficult. With the adoption of data analytics and big data, brand owners can control different restaurant workflows from one platform. Statistically, 50% of workers in the restaurant business state that business intelligence, payroll, and accounting software are highly necessary for their operations.

Most restaurants utilize and work with different types of data, such as their administrative details, guest information, and inventory management. Here, the use of advanced analytics is useful for decreasing operational costs, handling more profitable marketing campaigns, and providing good product selections.

In this article, we shall discuss more on the impact of such solutions on the restaurant industry, and why you should take them seriously.

Use of Big Data Analytics for Restaurants

Big data analytics covers a host of insights from different digital and traditional sources for businesses. Restaurants especially have to deal with a wide range of data on multiple fronts, like:

Goods from suppliers

Multiple food orders

Number of items in kitchen and seating area

Different payment methods

Staff management

You can take the help of professionally-created data analytics solutions to understand and handle the huge volume of data properly. Three points are important in the context of data analysis.

Volume- Restaurants have huge quantities of data and big data analytical solutions handle these effectively to get actionable results.

Variety- While running an eatery business, professionals have to get data from different sources and organize them efficiently. Statistics show that 90% of independently-owned restaurants close down 1 year into their launch. This is because they do not handle all factors cohesively, like labour costs and sales. With advanced big data analysis, it is simpler to gather information, compare, and contrast.

Velocity- For actionable insights, you need to work with information that is relevant currently. For brands, quicker processing speed ensures a better reaction time for review.

Important Factors of Restaurant Analytics

For optimized campaigns that can build revenues, companies must focus on specific factors for analysis. The main sources for restaurants include the following.

POS system

In different companies in the food industry, the Point-of-Sale system works as the primary operating system. So, for best scrutiny, this is what the restaurant focuses on more specifically to collect relevant data. The main pointers under this include:

Sales rate by menu

Top sales-centric categories

Average customer traffic

Taxes

Total sales

Sales rate by section of the restaurant

Payment/payment type

Discounts and deletions

Labour costs

Average sales per consumer

Sales rate by server

Top upsells

With a high-quality cloud-based POS system, data storage and access are easier to manage.

Suppliers

Another aspect the restaurants benefit from with data analytics is managing their supplier list. They can gather information on their orders and stock better, and manage backlog data for easier data flow.

Financing and Accounts

Software for financial aspects of the restaurant is useful for business performance analytics. Financial spreadsheets and payment history portals provide information regarding the restaurant, like:

Revenue

Costs

Profit margins

With such details, restaurant owners can make further plans for operational improvement.

Inventory

Data analytics also focus on inventory details, through a separate or the same POS system. The following points are some of the main focus areas.

Food category

Unit of measurement

Item name

Cost of unit

Stock quantity

Full inventory value

Why is Data Analytics Useful for Restaurants?

The following are the main advantages of advanced data analytics in the restaurant industry.

  1. Higher sales rate
    The restaurant industry is highly competitive, so for each company, it is useful to track sales rates in real-time. You can ascertain the reception of your products with customers and understand which are getting more re-sales. Based on such insights, adjusting the menu and product line is useful. Restaurant owners provide promotional offers and decrease the waiting period for customers after learning their preferences, with advanced analytics.
  2. High-quality marketing tactics
    Superior marketing campaigns allow restaurants to leverage better yields. Statistically, 91% of retail companies hold 2 or more social media channels for online marketing purposes.
    Through these portals, they gather information on customer preferences, competitor activities, and various market trends. Based on such data, it is easier for brands to design automated campaigns that the target audience finds valuable and interesting.
  3. Better operational efficiency rate
    For businesses, data analytics solutions make it easier to track business KPIs. Using this technology, the service providers can keep note of the number of guests in the queue, empty seats, and meal preparation timeline.
    They can check the online orders and inventory details and manage them efficiently. Such real-time insights are useful for assessing performance rates better.
  4. Geographical benefits
    In the restaurant industry, how far the spots are from customers does determine its success potential. With supportive systems like retail analytics solutions, it is simple to gather details of local demographics and market trends. Thereafter, you can tailor your resources to keep with the needs of your main target audience.
  5. Multiple benefits from diverse channels
    Restaurants optimize their services with the support of multiple online channels for sales and marketing.
    E-commerce activities are common for many restaurant chains currently. Through the online platforms though, professionals keep track of important factors like purchasing history, user traffic source, past transactions, sale amount, and customer feedback.
    They gain centralized information through data analytics solutions that make it easier to organize all avenues better.
  6. High-quality menu selections
    In restaurants, what you offer to your customers does and how you present them does affect customer retention rates. A dull menu interface with limited options would force the consumers away from competitor brands.
    With data analytics, you can figure out information on what type of menu design trends are attracting guests. Get additional details like if customers like seeing information on cooking style and ingredients in their menu. Statistically, digital menu boards are useful for increasing the sales/unit rate of stores by 16,000 USD annually.
    Thereafter, create a usable online ordering portal with integrated features like cuisine sorting for a better user experience.
Conclusion

All things considered, advanced analytics are highly influential for restaurants to improve their supply and sales rates. They can target specified customers better using relevant real-time details, and improve their performance KPIs. For best results, choose the right service provider for digital big data solutions and notice higher profits at your own restaurant.

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