Plan for Data Usage
We gathered a large quantity of data from this restaurant. We took all of this data and found different trends in the number of certain products sold during the day. Among the data of all the items, we were trying to figure out the most popular item and the item that generated the most revenue for this restaurant. This information could be useful to this fast food restaurant in many ways. The data we found could possibly help the restaurant by telling them what they should advertise more of in order to make more money. They could also figure out the most popular item which could allow them to slightly raise the price in order to make more money on the item and increase their 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. For example, we may be able to predict what they will sell more of and make more money off in the future.
Hypothesis of What We May Be Able to Find
We could use this information to figure out how well a new sandwich might do in the fast food industry because of what we have found. We determined there are a few sandwiches and meals that sell because of their price. We also know certain items or meals sell more because of what is added to the meal automatically like a drink. This will affect the number of items sold along with the profit.
Information We Discovered
We discovered that many fast food restaurants could make a lot of money by selling their sauces. They probably will not sell their sauce because people do not want to buy sauce to dip their food in. Ranch was a top "selling" item but they do not make any money on it because it is free for the consumer to purchase. We also found out pop is one of the most profitable items. This is because the restaurant does not cost much to be produced. We found the most profitable items are Drink C, Meal B, Sandwich G, and Meal C. Because these items are the top selling, we believe these prices may be increased in the future.
|Figure 1: Items Sold with Total Revenue|
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. This shows that the number of items sold has some effect on the total revenue made by the fast food restaurant.