Scribd
Upload
395 views2 pages

Forecasting at Hard Rock Café

Hard Rock Café uses three types of forecasting: long-term forecasting to calculate store sales growth capacity, intermediate forecasting for raw material contracts, and short-term forecasting to predict store sales and schedule labor and food. The POS system collects detailed sales data that can be used with other factors to forecast daily sales. Managers are evaluated based on a weighting system that considers sales performance over the last three years to incentivize continuous improvement. Additional variables that could predict daily sales include weather, local events, costs of living, special offers from competitors, and paydays.

Uploaded by

Ed Gierson Pascual
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
395 views2 pages

Forecasting at Hard Rock Café

Hard Rock Café uses three types of forecasting: long-term forecasting to calculate store sales growth capacity, intermediate forecasting for raw material contracts, and short-term forecasting to predict store sales and schedule labor and food. The POS system collects detailed sales data that can be used with other factors to forecast daily sales. Managers are evaluated based on a weighting system that considers sales performance over the last three years to incentivize continuous improvement. Additional variables that could predict daily sales include weather, local events, costs of living, special offers from competitors, and paydays.

Uploaded by

Ed Gierson Pascual
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

FORECASTING AT HARD ROCK CAFÉ

1.Describe 3 (three) different forecasting application at hard rock.

Hard Rock has three different forecasting applications:

A. To calculate the capacity for sales growth per store, long-term forecasting is performed.
B. Intermediate forecasting is used to create contracts for raw materials like leather, which is
utilized to make Hard Rock's leather coats.
C. Short-term forecasting is used to predict store sales so that food and labor can be scheduled
accordingly.

2.Name three (3) other areas in which you think Hard Rock could use forecasting models.

A. New food product and its impact. Will they be accepted by the consumers? (Long term,
Strategic)
B. Human Resource forecasting. Are they good enough on what they are doing, or could it be more
efficient in another way? (Medium term, Operating)
C. Opening new establishments. Is the market big enough? (Long term, Strategic)

3.What are the roles of the POS system in forecasting at Hard Rock?

The Point-of-Sale system collects diary data of almost every consumer in every single café. That
means huge information if we check out the number of visitors in almost every Hard rock Café.
Furthermore, this huge information means even more benefits if the managers are able to use them in a
proper way. These transactions in a combination with other data like prior year’s sales, local events,
tourist information’s may help the head managers of hard rock to realize the benefits of every café.

4.Justify the use of the weighting system used for evaluating managers for annual bonuses.

Using that method the and rock cafe expects from the local managers to maximize their present
and future results. That means annual bonuses for these local Managers and even more benefits for the
whole company. The basic concept of the annual bonus considers the economic data of the last 3 years:
Year before: 40% 2 years before: 40% 3 Years before: 20% The trick is that local managers must be
continuous efficient which means to have always better results so they can get the bonuses. If
something goes wrong like negative results or just less sales than the other year, they will be revised by
the headquarter and may will not get the entire bonus.

5. Name several variables besides those mentioned in the case that could be used as good predictors of
daily sales in each cafe.
Variables mentioned in the case:

prior year’s sales for that day 40/40/20 -> weight of data information (last year: 40 %, two years ago: 40
%, three years ago: 20 %) - adding information from local Chamber of Commerce or Tourist Board on
upcoming events (sport events, major conventions, concerts)

Other useful! variables: - predicted weather conditions for that day (if the weather is nice, probably
there will be more visitors which increases the sales)

vacation/holiday time around the shop and in other regions if it's predicted that they will transmit the
shop (but careful!, maybe a lot of local people are moving out for vacation, so there will be less sales)

groceries costs including food and beverages/costs of living (maybe some people will stay at home, it
the price for living costs are rising)

special offers from other burger restaurants (sales will decrease if there is more competition)

dates when people get their salaries or bonuses are payed like at Christmas (if people have more money
to spend, they will indulge in something)

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy