A chain restaurant’s profitability often depends on its capacity to control costs. Data analytics provides a full picture of customer preferences and is a valuable tool for restaurant chains to address stock control and to attract local business.
Having worked with a number of restaurant chains, the Phocas solution is used to consolidate data across all restaurants to benchmark stores and share insights, or at store level to lower expenses and increase profitability.
Here are four ways Phocas has helped drive success in restaurant chains.
To control stock on hand
Without clear visibility into your inventory, it’s difficult to prevent perishable materials from being thrown away. Data analytics helps chain restaurants to effectively manage their diverse inventory. Analytics provides clear visibility into inventory-to-purchase ratios and enables companies to isolate poor purchasing decisions, reduce excess inventory, and minimize the loss of perishable stock, as well as the costs to maintain it.
By monitoring the amount of stock on hand, the quantity of each product, and product lifecycles, companies can improve their forecasting and make more informed decisions about when to order, at which quantities, and at what price. This precision leads to greater cost-savings and ensures your raw materials won’t become a wasted investment.
To attract local sales
Data analytics can help restaurants to refine its local marketing decisions. Your data can help you analyze customer preferences, buying patterns, response to promotions, and quickly detect emerging sales trends. Detailed marketing data enables you to create targeted promotions based on market conditions.
For example, Rashays Casual Dining a fast-growing chain with 25+ restaurants uses Phocas to keep track of key metrics such as sales by restaurant and customer preferences, to the success of loyalty programs and knowing exactly what works and what doesn’t at each location.
To upsell customers
Once your team has an understanding of your customers’ buying habits, they are better able to determine the best way to increase profits through effective up-selling. Upselling is aimed at persuading customers to purchase an upgraded version of an item, or other add-ons, in order to make a larger sale. For instance, adding bacon or specialty cheese to a hamburger.
Up-selling is a way to build better relationships with customers by helping them get a better deal. When customers believe they are getting more value for their money, they are likely to come back for more. With Phocas, restaurants can analyze which products were bought together and therefore train service staff to pair certain items.
Online food ordering
By creating a straightforward way to make life easier for your customers goes a long way toward ensuring they will become repeat customers. Ordering food via a mobile app makes grabbing a meal-to-go easy. People find quickly placing an order while stuck in traffic an efficient alternative to placing an order over the phone after getting home. Studies conducted by the Interactive Advertising Bureau and Viggle show that about 69% of customers prefer to order food online. This is because it’s fast and easy. When restaurants offer this customer-friendly feature, they improve their chances of boosting sales.
After implementing Phocas, companies experience a new level of effectiveness in each department of their business. This translates to increased sales and improved profit margins, increased operational efficiency, and effective marketing strategies. With such overarching benefits, this is why chain restaurants love Phocas.
For more information about the commercial benefits of data analytics, download this eGuide, Food and Beverage KPIs to know and measure.