Keeping accurate forecasts of your restaurant sales allows you to determine how well your business is performing. You get to know when to order your next month inventory, open more restaurant locations, or recruit more employees for optimal performance. To give you a better understanding of restaurant sales forecasting, this free resource looks at how to estimate restaurant sales and the importance of the process.
Conducting Sales Forecasts for Your Restaurant
Just like other business types, there is no single way of conducting accurate restaurant sales reports. The method chosen will usually depend on the available information, access to historical data, and any other factors that drive the business. While one restaurant will forecast sales based on the number of customers at any time, another will rely on POS data to make accurate estimates.
A good restaurant sales forecast looks at shorter time like hours, as opposed to weeks. This is because sales in the restaurant industry are affected by real-time conditions, including peak periods and weather. The best way to achieve accurate projections is to use restaurant performance metrics. The following performance metrics can help you make accurate projections of your restaurant sales.
- Restaurant’s Daily Capacity
Your restaurant’s daily capacity indicates the amount of sales you can make on a normal day. If your restaurant full capacity is 20 tables of four on a busy evening, it would mean that you will be selling 80 (20 tables x 4 diners) main courses for every party. If you have an average set of two parties in a night, it means that your sales double to 160 main courses. If the average per-person ticket is $30, the sales can be forecasted as follows:
Table Count x Number of Seats per Table x Ticket Price x No. of Parties
Sales Forecast = 20 Tables x 4 seats per table x $30 per Guest x 2 Parties per Night
Sales Forecast = $4,800