By TopUp Mama
A leading restaurant in Nairobi, Kenya uses its historical sales, purchases, and current inventory data including customer trends and seasonality data to forecast for the future with the main aim of meeting customers’ demands in a timely and efficient manner. With the festive season coming up, the key team members are looking at the business' performance for the past two years to accurately forecast demand for the upcoming festive season. This is demand planning, where a business establishment prepares for customers' demand by relying on past data to inform purchase decisions, as well as optimal stock holding for a predetermined period of time.
Why is Demand Planning Important?
Demand planning takes the forecast and makes sure that capacity is available, orders are placed in good time, inventory levels for the predicted period are optimized, and delivery of customers' requirements can be achieved in the proper sequence.
Considerations when Demand Planning
There are 3 key elements to consider when planning for demand in the hospitality industry;
Demand Planning Benefits
When demand planning is accurately done, there are several benefits that will be realized. These include:
With accurate forecasts and data-driven demand planning, restaurants can improve cash flow, optimize inventories, and meet customer expectations.
Accurate demand planning will help the restaurants plan operations better, proper labor utilization, maintenance scheduling, and capacity planning benefit from a sound demand plan.
By forecasting accurately and planning with data-driven insights, demand planning for restaurants offers sales and marketing teams better information and leverage to target sales that match the demand curve.
Follow the below best practices to kick start Demand Planning for your Restaurant;
How do you plan for shifting demand in your business?
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