Thursday, January 23, 2014

End of Year project

Plan for Data Usage
We gathered a large quantity of data from this restaurant. We took all of this data and found out trends in different projects. Among the things we found were, the most sold item and the item that generated the most revenue. This information could be useful to this fast food restaurant in the way that they could heavily advertise the products that bring the most revenue, so that the company as a whole can continue to expand. With them being aware of these statistics they could be able to more effectively raise prices in terms that they would be able to increase overall profit. With us having the ability to analyze each menu item that they sell and knowing how many they sell, we create more precise conclusions. We may be able to predict what they will sell more of and make more money off of in the future. All of information and findings are only predictions now and what not because we never presented it to the owner.

Hypothesis of What We May Be Able to Find
We could use this information to figure out how a new sandwich might do in their restaurant. We have found that their are a few sandwiches and meals that sell a lot because of their price, and their are a few things that sell purely because they come with something else so are automatically added. Then there are other things that are free to add so those are not really that important.

Information We Discovered
Most fast food restaurants could make a lot of money from selling special sauces, but that probably would not be a good plan, since ranch was a top “selling” item. That is probably because one of the chicken menu items comes with sauce so the main reason for that is that that was added on to that order.  We also found that pop, generates an enormous amount of revenue. It is one of the top selling items and does not cost the business hardly anything to produce. It is advertising for the pop companies so they really don’t charge too much for a large quantity.  We found most profitable items to be Drink C, Meal B, Sandwich G and Meal C. We concluded that since these items produce the most amount of revenue, their prices may be increased in the future. They may want to try to lower prices of a few items with high solo revenue but not many sold, so that way more could get sold.

One problem we have is that this particular restaurant, is owned in many places so they cannot just change their one store without getting permission from the owner of all of them.  That is a problem. They really can’t do anything with our information because all of this restaurant would have to have a giant meeting and talk to the owner and I don’t think he would listen to a few teenagers on what to do with the company he has made so much money with. We also wouldn't really know how to contact this person, or if they would even respond or anything.
Figure 1: Items Sold With Total Revenue.

Figure 2:  Slope CI

We found a confidence interval for the total revenue of all products. We found that we are 95% confident that this fast food restaurant makes between .84 and 1.46 on every item they sell.

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