FORECASTING AT HARD ROCK CAFÉ V0.1
FORECASTING AT HARD ROCK CAFÉ*
MGMT 6130
Spring Quarter 2014
Contents
Questions
1 Describe three forecasting applications at Hard Rock. Name other areas in which you think Hard Rock could use forecasting models.
The Hard Rock Café uses forecasting models in a variety of areas. These areas include an earnings forecast, human resources forecast, and a placement forecast.
The earnings forecast are present to set a long-term capacity plan. Hard Rock Cafe has short term forecasting associated as well, focusing primarily on the effects of special events happening.
Another way the Hard Rock Café could use forecasting is to tell what kind of menu items will be available, to track sales records on event specials, or potentially offer surveys to analyze their own customer service.
Point-of-sale system (POS), which captures transaction data on nearly every person who walks through a cafe's door. The sale of each entrée represents one customer. They forecast monthly guest counts, retail sales, banquet sales, and concert sales at each café.
To evaluate managers an set bonuses, a 3-year weighted moving average is applied to cafe sales.
"Menu planning". Using multiple regressions, managers can compute the impact on demand of other menu items if the price of one item is changed.
2 What variables, besides time, can influence guest count?
Besides the variables written above can also be used: temperature or another weather or seasonal factor price of competition’s products price difference between competitor’s products investment in advertising number of special offers/sales number of entertainment events per period number of tourists in compare with the natives
3 What are historical data patterns of guest count?
The guest count shows that they have been increasing in the number of guest since 2007. During the 4 quarters of the year there guest count changes drastically and during
MGMT 6130
Spring Quarter 2014
Contents
Questions
1 Describe three forecasting applications at Hard Rock. Name other areas in which you think Hard Rock could use forecasting models.
The Hard Rock Café uses forecasting models in a variety of areas. These areas include an earnings forecast, human resources forecast, and a placement forecast.
The earnings forecast are present to set a long-term capacity plan. Hard Rock Cafe has short term forecasting associated as well, focusing primarily on the effects of special events happening.
Another way the Hard Rock Café could use forecasting is to tell what kind of menu items will be available, to track sales records on event specials, or potentially offer surveys to analyze their own customer service.
Point-of-sale system (POS), which captures transaction data on nearly every person who walks through a cafe's door. The sale of each entrée represents one customer. They forecast monthly guest counts, retail sales, banquet sales, and concert sales at each café.
To evaluate managers an set bonuses, a 3-year weighted moving average is applied to cafe sales.
"Menu planning". Using multiple regressions, managers can compute the impact on demand of other menu items if the price of one item is changed.
2 What variables, besides time, can influence guest count?
Besides the variables written above can also be used: temperature or another weather or seasonal factor price of competition’s products price difference between competitor’s products investment in advertising number of special offers/sales number of entertainment events per period number of tourists in compare with the natives
3 What are historical data patterns of guest count?
The guest count shows that they have been increasing in the number of guest since 2007. During the 4 quarters of the year there guest count changes drastically and during