Plan for Data Usage
We gathered a large quantity of data from this restaurant. We took all of this data and found out different trends in certain products. 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. For example, we may be able to predict what they will sell more of and make more money off of in the future.
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 industry because of what we have found. 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 DiscoveredMost 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. 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. 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.
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.
|Figure 2: Confidence Interval Items to Revenue.|