F&B: Customer Segmentation and Optimization

Using analytics to refine menu selection and optimise table turnover rate. We saw a 41% increase in customer loyalty and table turnover improve 33%

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Street Food

Background:

An European restaurant offering 5- and 8-course set lunch/dinner would like to know how customer is choosing the items within each of the course category and use this information to optimise the menu and also, to turn their business back to growth.
 

How are we approaching it:

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Menu Segmentation - Two Customer Group Behavior.PNG

Left: Summary of sales by courses and time of day, Right: Market Basket Analysis showing 2 distinct group of customers

The POS sales data includes: 1) Items ordered by each individual, 2) Time sitting in and checking out, 3) Number of people per table

A simple visualisation (BI) tells us that 8 course is more popular during dinner time and weekend, where customers have more time to sit down and enjoy the companion of their family and friends. Certain items are popular for 5 course and 8 course while some are all time favourites

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Here, we created 2 other indicators, seat turnover and table turnover rate. This would tell us 1) How packed the restaurant is and is the restaurant efficient and maximising it's capacity (or seats) for the customers. Obviously, there are so much room for improvement we observe here. We also correlate the table(seat) turnover rate with time of day and proportion of 5- and 8- course set lunch/dinner.

Remarks

This project took a week to analyse. There were many back and forth discussions and the above is just to give a flavour of the direction we took in our analysis. Most of the time is spent speaking with business stakeholders and implementing the recommendations for the restaurant. If you are interested to discuss more about analytics in F&B business, do not hesitate to reach out to me.