Café Chain
Analysis
Business Analytics in Retail and Marketing
INDEX
• Objective
• Executive Summary and key findings
• Exploratory analysis
• Price Change analysis
• Menu delisting
• Mix menu analysis and Combo offer
• Conclusion/Recommendation
Objective
• 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 Café 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
Café Chain Analysis
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 Café 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 – Café 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.
Executive Summary and key
findings
• Price change effect – there are mixed response by customers
to 7th Jan 11 price changes
> Sambuca and Cappuccino top selling items has shown
reduction in sale 50% and 22% respectively post price
increase.
> Whereas, for most price increase in Tobacco items (~75%)
has turned in favor of café.
• Trip Segmentation- There are 39.39% of solo trips (one item
per transaction) in a year and 54% of these solo transactions are
from TOBACCO lovers. A strategic promotional initiative like
combo offers can produce significant uplift to current revenue.
Executive Summary and key
findings
• Combo offers – TOBACCO, FOOD and BEVERAGES are most
selling categories for café.
> At present, café 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*
*see detailed analysis on Mix menu analysis and Combo recommendation slide.
Exploratory
Analysis
Café Chain Analysis
Sales of Café throughout year looks evenly
distributed
Effect of 31st
Dec new year
Yearly total : Transactions: 69,982 Rev. w/o Tax: 2,56,70,570 Item
Sold: 1,63,519
Sales of Café throughout week looks evenly
distributed
On avg. 20%
more sale on
Saturdays
Avg. weekly total : Transactions: 1,345 Rev. w/o Tax: 4,93,664 Item
Sold: 3,144
Sales of Café throughout day shows
variations
Rush hours
Total sale
just 0.2%
during early Recommended
morning hrs business Hour
Avg. Daily total : Transactions: 192 Rev. w/o Tax: 70,330 Item Sold:
448
Sales drilled down to per bill/transaction
level
On avg. 2 items per
bill
Higher on weekends
On avg. price per item
Rs. 150
Price Change
Analysis
Café Chain Analysis
Price change effect chart of 46 items
Sales Price Sales Volume Price Sales Volume
Price Item Name Item Name
Item Name Volume Change Change Change Change
Change
Change BAILEYS IRISH SAMBUCA
28 -50
BUN MASKA & CHAI SHAKE 17 -12
17 70 CHEESE CAKE OF SILVER APPLE SINGLE
KHEEMA GHOTALA THE WEEK 52 -38 22 -15
18 15 [Link] THE CHAMPAGNE
MEZE PLATTER AVALANCHE SHEESHA 6 -30
36 25 31 -50 WHITE WINE
RED BULL ENERGY CAFFE LATTE SHEESHA 6 -30
DRINK 20 35 14 -7 GRILLED CHICKEN
KF DRAUGHT (1LTR) CAPPUCCINO SAUSAGES -25 -44
22 11 17 -22 MAGGI NDLTHAI
AL SIKANDARI ESPRESSO • 17 out of 46 shown
STYLE -11 items-37
HOOKAH SINGLE
APPLE FLAVOUR
18 13
GREAT LAKES
25 -27 shows positive response
SINGLE 11 30 FLOAT W across categories
CALCUTTA MINT VANILLA 20 -3
28 62 GREAT LAKES • Tobacco/Hookah price
JUICE HOOKAH
SINGLE 18 90
FLOATS W CHOC
20 -31
increase mostly has
MINT FLAVOUR MASALA CHAI positive or neutral
SINGLE 11 13 CUTTING 25 -14
MISCHIEF HOOKAH MIAMI MELONS response
SINGLE 22 62
RABAT HOOKAH THE CHOCO
12 -19
• Most Beverage item’s sale
SINGLE 18 84 LATTE 15 -16 has been decreased post
LINDT CHOCOLATE ULTIMATE HOT
SHAKE -20 13 CHOCOLATE 15 -3 price increase
MT. BROWNIE HOEGAARDEN
-11 34 MUG (1 LITRE) 18 -62
COLUMBIAN TUBORG
SUPREMO (REG) -17 47 50 -38
price change w.e.f. 7th Jan 2011
Price Change effect plot of 46 items
Price increase, Sale Price increase, Sale
decrease increase
% Sales Volume
change
Price decrease, Sale Price decrease, Sale
decrease increase
% Price Change
Menu delisting
Café Chain Analysis
Lowest selling items can be removed from
menu – 1/2
Lowest selling items can be removed from
menu – 2/2
Mix menu analysis and
Combo offer
Café Chain Analysis
Offer combo delights and generate more
revenue - 1/2
Tobacco + Food combo
21lacs – 10.5lacs
If 100% – If 50%
convers convers
ion ion
Offer combo delights and generate more
revenue - 2/2
Food + Beverage combo
18lacs – Total bills in a years data 69982 8.9lacs
If 100% – If 50%
Food
convers No. of bills with Food item 32422 convers
ion ion
Beverage
No. of Bills with Food & Beverage 15774
No. of bills -food without beverage 16648
Most bought beverage - Great lakes shake 5914
price per shake 135
Discount if bought with food 20%
Max beverage quantity allowed in a given 1
combo/per bill
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.
• Café needs to review their price change strategy for non
tobacco items.
• Café can save resourcing fees/salary by changing Café
opening hours as per day analysis
• There are many menu items hardly called and needs to be
delisted to save preparation cost and time.
Conclusion/Recommendation
• To promote café as food joint too - Offer discounts for
higher spent on food items group discounts, corporate
discounts etc.
• lastly – To implement loyalty program more effectively,
café needs to start collecting customer details.
Thank You