Sponsored by Lineup.ai
Forecasting has traditionally been a time-consuming process, often done manually by hand. This process is prone to error, relying solely on historical data, human judgment, and memory recall. Even most technologies attempting to tackle sales and labor predictions don't account for external variables. A local concert cancellation or a road closure down the street can throw all confidence in expected demand out the window. Restaurants operate within tight margins — minor inaccuracies and lack of information can significantly impact profits.
With so much to consider in real-time, static forecasting methods like these just don't cut it. Operators need dynamic information to make informed decisions about resources like food and labor.
It’s not just the store operators and staff that realize the benefits. Business leaders and analysts have more control with a bird's eye view of data for each restaurant location as it unfolds. With visibility into how sales and staff hours are tracking according to planned resources, they can spot issues and intervene if needed. There’s also more confidence in how scheduling is completed as forecasts are translated into recommended staffing, down to the hour. Their GMs can reallocate hours previously spent in the office on this admin process to front-of-house operations like supporting staff and elevating the customer experience.
The advent of artificial intelligence (AI) offers a new perspective on forecasting for the restaurant industry. AI-powered solutions quickly and accurately process large amounts of data, identify patterns, and make predictions about future trends. All while minimizing risks of human error. Industry leaders leveraging this tech are reducing waste because they have a clear view of how much sales to expect down to the channel. They’re experiencing an increase in profit margins as labor cost percentages decrease as effective scheduling increases. Employees are even happier as the correct amount of staff supports them during the busiest shifts, and they aren't getting in each other's way during the lulls. Further, everyone is kept in sync on the schedule as it's all cloud-based with live updates if anything changes.
You're likely already using AI and machine learning in your day-to-day. Popular GPS mobile apps can help you get to the airport on time by calculating average route times, then factoring in variables like weather and roadblocks. You might even use a smart device to create a shopping list or set a reminder for you by speaking a command.
This technology is being used successfully in other industries such as retail and manufacturing. Now leading restaurant brands are optimizing profits using the same principles.
There are many different applications for AI-powered forecasting in the restaurant industry. Perhaps the most obvious is labor planning. Using data from past sales history and variables like weather and school closures, AI can predict how busy a given day or shift will be and plan accordingly. This ensures that restaurants have the correct number of staff on hand to meet customer demand without over-staffing (and incurring unnecessary labor costs). Other applications include:
- Inventory management (predicting food trends and ordering accordingly)
- Marketing (targeting promotions at customers most likely to take advantage of them)
- Menu design (identifying popular items and combinations)
In today's competitive business landscape combined with resource challenges, it is more important than ever for restaurants to find ways to optimize their profits. One way leading brands do this is by using artificial intelligence (AI) to power their forecasting. Machine learning is revolutionizing how businesses operate within this ecosystem. Those who embrace this technology will be well-positioned to find success in the years ahead. This affordable technology is readily available to all business sizes, so no one is left behind.
Get the white paper from Lineup.ai to see how industry leaders use cutting-edge AI and machine learning to reduce uncertainty, optimize resources, and increase profits. Learn how you can, too.
