Data Analytics

Recommendations for Cafe Owner based on data

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sandhyaj Over 8 years ago

Recommendations

RECOMMENDATION For the Café Great Case   1.    Meal                         They should offer those starters at first which are generally preferred by the customers, like the particular wine. 2.    Kitchen time Kitchen up time should be managed such that  the labour hours paid should be least and the marginal productivity should be maximum. Like the café should be closed after 2 a.m. 3.    Price change impact on sales It is observed that the few items are having positive relationship with the price of the item. 4.    Purchase incentive They should offer food in combos on the days when the demand falls such the customer find motivation for the consumption. 
kaushal Over 8 years ago

Recommendations

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Cafe Great - Recommendations.pdf

triptig Over 8 years ago

Recommendations

 RECOMMENDATIONS ON CAFÉ GREAT PROBLEM 1. From the category analysis graph , we see that tobacco products are generating maximum revenue  out of all the other categories.  RECOMMENDATION Increase the price of tobacco products as tobacco is an addiction and an habit forming commodity so its demand is inelastic so people will still come to café great even if we increase the prices slightly provided other USP’s of the café are still on . 

2. We also observe that the amount of food being consumed is more than other quantities but the revenue generated from food is lower than that of tobacco because on an average ,tobacco is priced more than food items.Also, from the price change impact , covering the price of certain food items , decreases the quantity consumed .Example – Maggi thai style has seen a 60.5% decline in prices due to the change in price .    RECOMMENDATION Increase the price of certain food commodities since the decrease in prices seem to have an adverse impact. 

 3. From the time of the day analysis , we see that from 9am till 10:30 am and from 2-6 am , the footfall is quite low . RECOMMENDATION So we should do back office and thin down the services so it will cut down the costs . 

 4. Regarding the price change impact , in liquor category which amounts to 7% of the total revenue , Carleberg and Tuborg account for the highest consumed quantities and their increase in prices resulted in decrease in quantity. We also see a similar trend in the second best selling beverage Cappucino where a 16.7% price increase led to 10.7% decrease in quantity .  RECOMMENDATIONPrice relaxations in these categories is needed . 

5. In Day of the week analysis , we saw that Saturday is the day where the footfall is maximum. RECOMMENDATIONTo introduce the concept of happy hours in other days and provide free mocktails offers or combo meals which will help increase the revenue .

 6. After calculating the elasticity in the price change impact sheet i.e % change in quantity / % change in price , we see that items like NIRVANA HOOKAH SINGLE , N R G  HOOKAH  have a high elasticity . RECOMMENDATIONI would recommend we should increase the price of  theseitems as it would increase revenue .      
riddhima30 Over 8 years ago

Recommendations

 RECOMMENDATIONS ON CAFÉ GREAT PROBLEM 1. From the category analysis graph , we see that tobacco products are generating maximum revenue  out of all the other categories.  RECOMMENDATION Increase the price of tobacco products as tobacco is an addiction and an habit forming commodity so its demand is inelastic so people will still come to café great even if we increase the prices slightly provided other USP’s of the café are still on . 

2. We also observe that the amount of food being consumed is more than other quantities but the revenue generated from food is lower than that of tobacco because on an average ,tobacco is priced more than food items.Also, from the price change impact , covering the price of certain food items , decreases the quantity consumed .Example – Maggi thai style has seen a 60.5% decline in prices due to the change in price .    RECOMMENDATION Increase the price of certain food commodities since the decrease in prices seem to have an adverse impact. 

 3. From the time of the day analysis , we see that from 9am till 10:30 am and from 2-6 am , the footfall is quite low . RECOMMENDATION So we should do back office and thin down the services so it will cut down the costs . 

 4. Regarding the price change impact , in liquor category which amounts to 7% of the total revenue , Carleberg and Tuborg account for the highest consumed quantities and their increase in prices resulted in decrease in quantity. We also see a similar trend in the second best selling beverage Cappucino where a 16.7% price increase led to 10.7% decrease in quantity .  RECOMMENDATIONPrice relaxations in these categories is needed . 

5. In Day of the week analysis , we saw that Saturday is the day where the footfall is maximum. RECOMMENDATIONTo introduce the concept of happy hours in other days and provide free mocktails offers or combo meals which will help increase the revenue .

 6. After calculating the elasticity in the price change impact sheet i.e % change in quantity / % change in price , we see that items like NIRVANA HOOKAH SINGLE , N R G  HOOKAH  have a high elasticity . RECOMMENDATIONI would recommend we should increase the price of  theseitems as it would increase revenue .      
riddhima30 Over 8 years ago

CAFE GREAT_RECOMMENDATIONS

angana95 Over 8 years ago

Recommendations about the Café Great Problem Statement

  1. As the percentage sale is concentrated only in certain products, products with 0.0% sale in categories such as ‘Food’ (for instance, carrot cake) may be removed after feedback from customers. Another option will be to sell them as complementary products so that at least customers try the product.
  2. Products immune to price increase may be hiked for revenue. For instance, NRG Hookah- the sales increased immensely (93.8%) despite the increase in price.
  3. It seems that customers are also willing to pay for certain other products such as Red Bull energy drinks as well. Prices may be hiked bit-by-bit and more such products may be introduced with experimental analysis.
  4. There is no need to change prices of products such as Chunky Choco Chip Cookies as impact is negligible in sales.
  5. Other products such as Maggi Thai Style which are sensitive to price change may not be fluctuated so much. If there is need for price change, those changes must be small. (since small changes can have big effects)
  6. As on Saturdays, the footfall is the highest, the promotion of high and low-selling products such as merchandise products must be done that day so as to reach maximum crowd.
  7. When it comes to quantity, we extract that Food is the highest from the number of billings. Therefore, popular food items should be looked into.
  8. A more detailed and specific analysis of the product concentration hasn’t been possible since the data needs better categorization and cleaning. For instance, the ‘Kit Kat Shake’ is listed under the ‘Food’ category while some other shakes such as the ‘Blueberry Shake’ has been listed under the ‘Beverages’ category. The ‘Great Lakes Shake’ has the highest concentration under the ‘Food’ category and if it is switched from ‘Food’ to ‘Beverages’, it might change many figures significantly.
  9. The sale of Liquor and Sheesha combos is high. Such combinations of complementary products must be included for ‘Food’ and ‘Beverages’ categories as well and be made available exclusively on Fridays, Saturdays and Sundays when the footfall is more.
  10. Food items by quantity are the highest but are generating less revenue, therefore, a price check is suggested since the food items may be under-priced.
  11. Whatever offers were up during the third quarter might be looked into and re-introduced since revenue was highest in that quarter.
  12. Tobacco being the prime revenue earner needs more attention, conducive environment and promotions may help generate more revenue.
  13. Cut-down or deploy less staff till 15:00 hrs on Fridays, Saturdays and Sundays since customers are as low as 3.0% when compared to the whole day.
  14. Tuesdays especially has less customers so staff switching may be implemented that day or the café may be closed altogether on Tuesdays. 
  15. Most working people seem to visit the café therefore, small coupons which act as incentives may be given between 2 pm and 4 pm after which the sales peak. There seems more opportunity to capture customers during this time.
ipshita_mishra Over 8 years ago

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kartiksharma Over 8 years ago