Business Analytics Services
What is business analytics?
Business analytics is comprised of solutions used to build analysis models and simulations to create scenarios, understand realities and predict future states.
How do I increase my Average Ticket Size to maximize my sales without increasing my prices?
Price optimization
Price optimization combines research, strategy, and price analysis of your menus and customers profile to maximize profitability and help your restaurant set prices that will deliver your optimal Average Ticket Size.
Research
- Your customers willingness to pay analyzing pricing elasticities.
- The prediction of customers’ response to price changes.
- Competitor’s comparisons
Price analysis
- Product mix of my customer’s tickets.
- Identifying Quick Wins.
Strategy
- Developing a pricing optimization model
- Balancing the offer per ticket
- Developing a pricing framework
Revpash Analytics
RevPash helps you get the most out of each seat at any time. Highest occupancy of your seats is crucial during all opened hours without leaving seat unoccupied.
Analysing the RevPash will provide you information on the income per seat obtained on the time slot when the sale was made, party size and meal duration, helping you make the decision of which are the most appropriate strategy policies to apply.
Predictive Analytics
Sales forecasting helps you attain your revenue efficiency by offering insight into the likely behavior of your customers.
HOSTALION uses advanced predictive analytics about future outcomes using historical data combined with statistical modeling, data mining techniques and machine learning to find patterns identifying risks and opportunities.
Product mix analytics
The Product Mix determine the proportion of each product that your establishment sells in relation to the total sales, being important because some products can be more profitable than others, and if you change the product Mix, your profits also change.
ENTRIES | Y | X |
SHRIMPS PIL PIL | 12.8 | 11.5 |
CHICKEN CROQUETTE | 10.0 | 11.1 |
TUNA TARTARE | 13.1 | 9.2 |
SPICY TUNA SUSHI | 10.6 | 10.7 |
TOMATO SOUP | 13.6 | 20.8 |
FRIED PEPPERS | 10.1 | 3.1 |
LOBSTER TACOS | 10.7 | 7.6 |
CEVICHE | 5.5 | 15.6 |
TUNA TATAKI | 5.6 | 5.9 |
FISH CAKES | 4.2 | 2.8 |
SHRIMPS COCKTAIL | 3.8 | 0.8 |
GRILLED PRAWNS | 0.1 | 1.0 |
Menu analytics
We use menu engineering where the correlation between the popularity and profitability of each of its food and beverage products is analysed.
It will provide you with very useful information for making decisions on whether to increase the unit price, reduce the cost or size of the product to maximize your gross margin, or maybe eliminate the product because it has no outlet on your menu, or promote due to its high profitability.
Cost of good sold (COGS)
On a monthly basis, we carry out the reconciliation of movements of raw materials to detect deviations from the standard costs due to losses, waste and possible theft in order to obtain the real cost in accordance with established recipe standards by the management.
MONTHLY REPORT | FOOD | BEVERAGE | TOTAL |
Opening balance | 6,345 | 7,668 | 14,013 |
WarehousePurchas. | 13,444 | 12,789 | 26,233 |
Direct Purchases | 672 | 0 | 672 |
Delivery notes | 1,312 | 789 | 2,101 |
Internal transfers | 85 | 63 | 148 |
Employee meals | 992 | 496 | 1,488 |
Expired & damaged | 132 | 41 | 173 |
Invitations | 340 | 125 | 465 |
Free samples | 22 | 38 | 60 |
Closing balance | 5,955 | 6,980 | 12,935 |
Cost of goods sold | 14,417 | 13,629 | 28,046 |
Theoretical Cost | 13,915 | 13,500 | 27,415 |
Discrepancy | 502 € | 129 € | 631 € |
Discrepancy % | 3.5% | 0.9% | 4.4% |
COGS Cost % | 30.2% | 27.9% | 29.0% |
Theoretical cost% | 29.1% | 27.7% | 28.4% |
Deviation % | 1.1% | 0.3% | 0.7% |
Target % | 29.5% | 27.5% | 28.5% |
Deviation % | 0.7% | 0.4% | 0.6% |
Labor costs
Labor efficiency is a measure of how efficiently a given workforce accomplishes a task, when compared to the standard in your business analyzing the number of hours actually required to produce your products and delivery the service to your customers.
Periodically we analyze each one of the KPIs that will provide us with relevant data for decision making in the two most important variables of our industry related to labor efficiency: the duration of a meal per client in our establishment and time of preparation and service of their orders, thus improving the RevPash indicator and the labor cost percentage.
Profit & loss summary
COMPREHENSIVE FINANCIAL ANALYSiS
We prepare monthly the results of your business Profit & Loss accounts using the USAR /USAH methodology (Uniform System of Accounts for Restaurants /hotels) analyzing each of the costs and expenses of the period comparing deviations with the company´s budget and the standard percentages of the sector.
BUDGET PLANNING
Budgeting provides a means of controlling income and expenditure of a business.
It defines the objectives of an organization in numerical terms for a specific period.
Budgeting is used to evaluate the policies and goals of an organization. Moreover, such policies and goals are tested with the help of budgetary control.
We elaborate your budget using analytics techniques controlling all possible variables that might change your objectives.
P&L STATEMENT | ||||||||||
Feb-21 | THIS MONTH | TO DATE | ||||||||
REVENUE | ACTUAL | % | BUDGET | % | VAR | ACTUAL | % | BUDGET | % | VAR |
Food | 56,000 | 50.2% | 60,210 | 53.1% | -4,210 | 128,800 | 47.8% | 150,000 | 51.7% | -21,200 |
Beverage | 43,345 | 38.9% | 41,097 | 36.3% | 2,248 | 112,697 | 41.8% | 110,000 | 37.9% | 2,697 |
Others | 12,123 | 10.9% | 12,000 | 10.6% | 123 | 27,883 | 10.4% | 30,000 | 10.3% | -2,117 |
TOTAL REVENUE | 111,468 | 100 | 113,307 | 100 | -1,839 | 269,380 | 100 | 290,000 | -20,620 | |
COST OF SALES | 35,380 | 31.7% | 34,559 | 30.5% | 1.2% | 80,545 | 29.9% | 88,450 | 30.5% | -0.6% |
LABOR | ||||||||||
Manag. & Prof. services | 10,367 | 9.3% | 11,000 | 9.7% | -633 | 23,843 | 8.9% | 29,000 | 10.0% | -5,157 |
Operating Staff | 21,959 | 19.7% | 22,500 | 19.9% | -541 | 52,702 | 19.6% | 56,550 | 19.5% | -3,848 |
TOTAL LABOR COST | 32,326 | 29.0% | 33,500 | 29.6% | -1,174 | 76,545 | 28.4% | 85,550 | 29.5% | -9,005 |
GROSS MARGIN | 43,762 | 39.3% | 45,248 | 39.9% | -665 | 112,290 | 41.7% | 116,000 | 40.0% | -3,710 |
OPERATING EXPENSES | ACTUAL | % | BUDGET | % | VAR | ACTUAL | % | BUDGET | % | VAR |
Direct Operating Expenses | 2,190 | 2.0% | 1,900 | 1.7% | 290 | 4,599 | 1.7% | 3,800 | 1.3% | 799 |
Music and Entertainment | 2,452 | 2.2% | 2,300 | 2.0% | 152 | 4,905 | 1.8% | 4,600 | 1.6% | 305 |
Marketing | 4,459 | 4.0% | 3,800 | 3.4% | 659 | 8,472 | 3.1% | 7,600 | 2.6% | 872 |
Utilities | 5,016 | 4.5% | 4,900 | 4.3% | 116 | 9,125 | 3.4% | 9,500 | 3.3% | -375 |
General & Administration | 1,115 | 1.0% | 1,115 | 1.0% | -0 | 2,230 | 0.8% | 2,230 | 0.8% | 0 |
Repairs & Maintenance | 2,341 | 2.1% | 2,500 | 2.2% | -159 | 4,800 | 1.8% | 5,000 | 1.7% | -200 |
TOT. OPERATING EXPENSES | 17,573 | 15.8% | 16,515 | 14.6% | 1,058 | 34,130 | 12.7% | 32,730 | 11.3% | 1,400 |
OPERATING PROFIT | 26,190 | 23.5% | 28,733 | 25.4% | -1,722 | 78,160 | 29.0% | 83,270 | 28.7% | -5,110 |
NON-CONTROLLABLE EXP. | ||||||||||
Occupancy Costs | 6,500 | 5.8% | 6,500 | 5.7% | 0 | 13,000 | 4.8% | 13,000 | 4.5% | 0 |
EBITDA | 19,690 | 17.7% | 22,233 | 19.6% | -2,544 | 65,160 | 24.2% | 70,270 | 24.2% | -5,110 |
Cash flow management
Mastering Cash Flow
Cash flow management refers to the process of monitoring, analyzing, and optimizing the flow of cash into and out of a business or individual’s finances. It involves understanding the timing of cash inflows and outflows, ensuring that there is enough cash on hand to cover expenses, and maximizing the use of available cash to generate returns or invest in growth opportunities.
Efficiently managing accounts receivable (money owed to the business) and accounts payable (money owed by the business) to optimize cash flow.
CASHFLOW FORECASTING /BUDGETING
Forecasting: Predicting future cash inflows and outflows based on historical data, current financial conditions, and future expectations.
Budgeting: Creating a budget that outlines expected expenses and revenues to provide a framework for managing cash flows.
