Sales forecasting methods in gastronomy

One method of forecasting sales is to assume sales volumes. Being at the start of your business, the extent to which the needs of the market are being met is worth investigating, so that we can estimate the future value of sales. To do this, you need to determine the size of the market you should want to find out how many customers your competitors are serving. These activities should show how much market demand is covered. Once the analysis is done, we can use a simple formula.

Market potential – number of customers served in the market = number of customers that are not going to use our service, and therefore won’t lead to increased supply. Knowing this value, we can move on to calculating the value of sales using the formula.

Number of customers that do not lead to an increase in supply multiplied by an average order value at our premises.

Another method is to try to estimate the degree of market saturation. We do this by dividing the number of potential guests by the size of the market.

Applying mathematical methods can provide us with a lot of important information. Before doing so, however, it is worth observing the competition. In practice, this means several visits to a competitor’s premises, during which we can see the potential number of customers and the average value of orders.

The second issue to address when it comes to forecasting sales is the cost of raw material. When forecasting profits, it is useful to determine the costs incurred by our company. It is worth using the cost of raw material for groups of products. This is because we can impose a much higher margin on certain products.

The cost of employees is also a very important aspect when forecasting sales. Without them, the enterprise would not be able to function. It is worth treating the cost of employees as a fixed cost and not making it dependent on sales, although bonuses for employees can be considered an exception from that general rule.

One of the last aspects to be addressed when it comes to sales forecasting is operating costs. These are all costs that do not change in proportion to sales, but are not fixed. These include things such as rubbish collection, equipment servicing, water, electricity, advertising campaigns, website, purchase of appropriate cleaning products, and so on.

Profit is the key factor that illustrates how much money is left after all costs have been deducted. An increase in sales volume does not necessarily mean an increase in profit at the same time. A common strategy is to increase costs just to sell more products. The best solution is to increase sales while optimizing costs. By doing so, profit will be greatest.

Software for bakeries and pastry shops

One solution to forecasting sales s is to use the right software. We, for example, offer Ada++ software for bakeries and pastry shops that uses one of the most innovative algorithms that, among other things, helps to better manage product stocks, orders, and own shops. The algorithm is able to create orders itself based on data such as deliveries and returns, name days, weather, shortages or order anomalies. While using Ada++, you do not have to worry about things like sales forecasts.

The algorithm is able to reduce the level of returns on its own and increase the number of products ordered so that the quantity is adequate for current sales. By setting up the product individually for each customer, the artificial intelligence is able to adapt its system from many different angles. Based on parameters such as location, opening hours, closing hours, number of spaces at the counter and expiry dates, the algorithm is able to create orders on its own, check current stock levels, process information on returns, and eliminate many order-related anomalies,this detecting all anomalies and fixing errors.

Besides Ada++, it is worth using other products from InfoPiek: InfoPiek Production, which is one of the best tools for improving production management. For employees who work away from the company, the company has created the InfoPiek Mobile app, which can locate the device on which it has been installed. In addition, the app allows an order to be saved on a device that is off-line, where the order in question will be sent once a network connection is established.

As you can see, IT solutions are able to make the work of many people much easier Thanks to the Ada++ AI, running a bakery or pastry shop becomes something much easier. Program will calculate the sales forecast itself, and this allow us to focus on running the business efficiently.

Artykuł Sales forecast pochodzi z serwisu InfoPiek.

Artificial intelligence is becoming more and more ubiquitous and this trend will increase whether we like it or not. By combining algorithms with the incredible computing power of today’s computers, artificial intelligence offers possibilities we never dreamed of before.

The most distinctive approach is that of Facebook, which collects information about its users and then uses it for marketing purposes. We live in a time when algorithms can influence the outcome of presidential elections by suggesting content that will be tailored to our expectations (the famous Cambridge Analytica case).

It is only a matter of time, when the ability to profile customers will become one of the most profitable industries. At the same time, AI are not systems that are something mysterious and expensive. No, in fact the algorithms are widely known and can be used in any application. The food industry seems to be a new arena where developments in technology can be used to make a business profitable. Forecasting sales will allow bakeries and pastry shops to adapt to the needs of the market and, in turn, get rich quick. The inferences made by the artificial intelligence system will allow a reduction in returns, leading to the satisfaction of the entrepreneur. Finally, sales inference is a powerful system that will take your catering business to the next technological level, leaving competition far behind.

Artificial intelligence makes virtually no mistakes

The word ‘intelligence’, in the context of this artificial one, has long been a topic of contention. There are questions of proponents of strong and weak artificial intelligence. This is irrelevant, however; the most important thing is that the systems are based on mathematics, largely statistics. Artificial neural networks are really a matter of transferring information between elements of the system, and these neurons are only and as much as, inspired by biology. Linked to the networks is the ability for the network to ‘self-teach’ after inputting data. Google’s AlphaZero algorithm was given information about the rules of chess, and then by playing with itself it became… the best chess player in the world between both humans and computers. This goes to show how powerful the possibilities of artificial intelligence are. Now it has also entered the food industry.

Sales forecasting for the “Returns Slayer”

The ability to make a sales forecast is fundamental (but not only!) advantage of software for a confectionery or bakery. Consider the intelligent Ada++ system called the “returns slayer”. Based on analysed data, it is able to provide an idea of how much to produce in order to maximise profits. To produce too much is to lose money on the disposal of products that have not sold, and to produce too little is to miss out on full earning potential.

Artificial intelligence in the catering industry

The software for bakeries and pastry shops allows collaboration between the different branches of the business to optimise the process from product purchase to sale. Ada++ is based on the analysis of up to 300 million receipts and will allow you to better manage the stock of products, orders or any deliveries. The software dedicated for confectioneries (but not exclusively for them) will ensure that your company no longer wastes resources. A proper supply chain combines a lack of waste with no downtime due to a shortage of production materials. Software for bakeries will not only use data on the location and opening hours of the shops, but can also take into account aspects such as the amount of display counter space or shelf life.

Enhance the employee comfort, let them do only what is really needed.

Employees who can take advantage of the benefits of artificial intelligence can focus on their core duties. A lot of time is lost to planning the entire sales process, that time can be used in other ways. On the one hand, we ourselves have to orchestrate the technological issues appropriately; on the other, we have to hit the requirements set for us by the shops that are the recipients of our products. Having to combine these categories is a waste of manpower potential. Let the employees of the bakery or confectionery deal with the production of food, by shifting organisational duties to a system that performs such tasks automatically. From a computational point of view, humans are no match for intelligent systems and are unable to analyse such a large amount of data in order to draw appropriate conclusions.

Artykuł Artificial intelligence in the catering industry pochodzi z serwisu InfoPiek.