RAVEENDRA BABU GADDAM

Executive summary and Key Findings

 Analysis has been performed on 1 year data.

 Top Selling products of the café is Tobacco, Food, Beverage and Liquor.
 Sales of most of the products picks up on Friday and reaches peak on
Saturday.
 There is no significant trend when we analyze the data for monthly and
weekly. But sale are more on Saturdays. On an average 20% more sales
on Saturdays than the other days
 Café opening hours can be changed from almost 24hrs to 16-17hrs
(10AM to 2AM) with total sale compromise of just 0.2% Rs.55K p.a. Two
shifts of 8hours each recommended (10AM to 6PM and 6PM to 2AM)
 Late afternoon to midnight till 2AM sees maximum sale (85% of total
revenue )
 Almost 50% of total revenue is generated from tobacco(hookah) and
liquor items.
 Executive summary and Key Findings

 Price change effect – Sambuca and Cappuccino top selling items

has shown reduction sales post price increase. Whereas, for most
price change is favorable in case of Tobacco products
 Segmentation- There are 39.39% of solo items per transaction in a
year and 54% of these solo transactions are from TOBACCO lovers. A
strategic promotional initiative like combo offers can produce
significant uplift to current revenue.
 Combo offers – TOBACCO, FOOD and BEVERAGES are most selling
categories for café. At present, café has few combos with Liquor and
Tobacco categories but none with Tobacco + Food and Food +
Beverages.
We recommend
> Tobacco + Food combo can increase the by up to 21 lacs
> Food + Beverage combo can increase the revenue by up to 9 lacs
MRA PROJECT CAFÉ CHAIN
Café Chain sales evenly distributed over the year
12.00%

Dec sales are

higher due to
10.00%
new year
celebration
8.00% impact

% of Transactions
6.00%
% Qty Sold
% Revenue without tax

4.00%

2.00%

0.00%
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Total number of Transaction-69982, Revenue-25670570 and Qty Sold-163519

Category wise share of Qty sold

% of Qty
WINES, 1%
Quantity
wise Food
is the top
category

MISC, 1% TOBACCO, 23%

MERCHANDISE, 0% BEVERAGE, 31%

LIQUOR &
TPBACCO, 0% LIQUOR, 6%

FOOD, 38%
Category wise share of Revenue

% of Revenue
WINES, 1%
BEVERAGE, 17%

As far as Qty is
concerned Foods
TOBACCO, 43%
is the top one but
when comes to
FOOD, 31% revenue Tobacco
occupies the top
position
MISC, 1%
MERCHANDISE,
0% LIQUOR &
TPBACCO, 0% LIQUOR, 6%
Month Wise Category wise share of Revenue

Tobacco,
Food and
Beverage
are top
contribut
ors in
Revenue
Week day wise Revenue
Sales starts rises from Friday
and pickup on Saturday
% of Average Week Day Totals
On avg. 20% more
20.00% sale on Saturdays
18.00%
16.00% 16.68%
14.92%
14.00% 13.68% 13.72% 14.22%
13.25% 13.52%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Monday Tuesday Wednesday Thursday Friday Saturday Sunday

% Transactions % of Items Sold % of Revenue Linear (% of Revenue)

Avg. weekly total : Transactions: 1,345 Rev. w/o Tax: 4,93,664 Item Sold: 3,144
 10.00%

0.00%
1.00%
3.00%
4.00%
5.00%
6.00%
8.00%
9.00%

7.00%
5:00AM - 6:00AM

only
6:00AM - 7:00AM

Early
hours

2.00% 0.02%

0.01%
sales is
09:00AM - 10:00AM

0.00%
10:00AM - 11:00AM

0.00%
11:00AM - 12:00PM

0.21%
12:00PM - 1:00PM

1.72%
1:00PM - 2:00PM

3.19%
2:00PM - 3:00PM

3.84%
3:00 PM - 4:00PM
% of Average Hourly Sales

4.80%

4:00PM - 5:00PM
6.11%

5:00PM - 6:00PM
7.27%

6:00PM - 7:00PM
8.07%

8:00PM - 9:00PM
8.19%

7:00PM - 8:00PM
9.15%

9:00PM - 10:00PM
10:00PM - 11:00PM
8.06%

11:00PM - 12:00AM
8.98% 9.08%

12:00AM - 1:00AM
9.35%

1:00AM - 2:00AM
7.93%

2:00AM - 3:00AM
3.84%

3:00AM - 4:00AM
0.08%

4:00AM - 5:00AM
0.06%
0.05%
Circled are the
Business peak hours

% of Quantity
% of Revenue
% of Transactions
Category wise Hourly Sales Busy hours are between 19-20 Hrs and most part
of the sales are between 19-23 Hrs. Sales gradually
progresses from 11 Hrs
Category wise Hourly Sales
Average Items Per Bill Avg 2 Items per bill
5
4
3
2
1 Average Items Per Bill
0
Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Avg is high during

400
Average Revenue per bill weekend

Average Revenue per bill

300
Monday Tuesday Wednesday Thursday Friday Saturday Sunday

200
Average Revenue per Item Avg price per item
is 157.
150

Average Revenue per Item

100
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Customer Behavior during different days of Week

Foods,
Beverage
and
Tobacco
has
highest
preference
on
Saturdays
Customer Behavior during different times of day
Customer Behavior during different times of day

 Beverage sold more during 4pm to 8pm.

 Food is having peak demand between 4pm to 12am.
 Liquor is having peak demand between 4pm to 12am.
 Tobacco is sold more between 4pm to 12am.
 Wine is sold more during night times
 Other items also sold more during night times
Category wise Trend Across the Months
Category wise Trend Across the Months
 Sales volume is low from Jan to June for major part of
the products.
 Volume starts increasing from June and peaks in Dec
 There is a sharp rise in volumes of food and beverage
in the months of July and Aug
 Tobacco and Liquor has decreasing trend in sales
volume except for the month of Dec
To check the items to be removed from the menu
Below is the list of items which we can remove from the menu
because of sales with either very low volume or low value during
the entire year 1/2 Beverage
Item Desc Category Quantity Rate
2 AXE TWIST BEVERAGE 1 140
DECAFFINATE COFFEE FRAPPE BEVERAGE 1 75
MIXED FLAVOUR SINGLE BEVERAGE 1 225
MOCAFE HOT CHOCOLATE(SF) BEVERAGE 1 65
PEACH BULL BEVERAGE 1 150
WHAT A MELON BEVERAGE 4 350
BOTTLED WATER (1LITRE) BEVERAGE 10 35
HOUSE BLEND DE CAFFE (AU LAIT) BEVERAGE 10 135
NEW ORLEANS BLUE (AULAIT) BEVERAGE 10 115
VARLHONA HOT CHOCOLATE BEVERAGE 11 180
NEW ORLEANS BLUE (REG) BEVERAGE 15 95
FOOD
Item Desc Category Quantity Rate
ADD BUTTERED TOAST FOOD 1 15
CAPONATA FOOD 1 150
NIRVANA HOOKAH DOUBLE FOOD 2 295
STRAWBERRY MERINGUE FOOD 2 200
SUNNY SIDEUP + BEVERAGE FOOD 2 99
2 MUFFINS + BEVERAGE FOOD 3 99
WAFFLES + BEVERAGE FOOD 3 99
CARROT CAKE FOOD 4 130
VEGETABLE PASTA FOOD 4 325
CHICKEN HAM FOOD 5 35
NONVEG PASTA PESTO FOOD 5 225
Below is the list of items which we can remove from the menu
because of sales with either very low volume or low value during
the entire year 2/2 LIQUOR and WINES
Item Desc Category Quantity Rate
ZINZI WHITE (BTL) LIQUOR 1 700
1+1 VLN CAB SAUV (BTL) WINES 1 800
1+1 VLN SAUV BLANC (BTL) WINES 1 800
4 SEASONS CLAS SYRAH(BTL) WINES 1 800
B1G1 4SEASON CLAS SAUV(BTL) WINES 1 900
B1G1 4SEASON CLAS SAUV(GLS) WINES 1 200
MANDALA VALLEY CHENIN BLANC(GL WINES 1 175
SULA CHENIN BLANC (BTL) WINES 1 800
WHISKEY (SM) LIQUOR 2 200
B1G1 4SEASON CLAS SYRAH(GLS) WINES 2 175
MANDALA VALLEY RED ZINFANDEL(G WINES 2 200
TOBACCO
Item Desc Category Quantity Rate
AL SIKANDARI HOOKAH DOUBLE TOBACCO 1 345
CLASSIC REGULAR TOBACCO 1 78
GOLD FLAKE ULTRA LIGHTS(20) TOBACCO 1 73
INDIA KINGS OCEAN BLUE TOBACCO 1 91.5
APPLE FLAVOUR DOUBLE TOBACCO 2 280
CLASSIC MENTHOL RUSH TOBACCO 2 83.3
GREAT LAKES HOOKAH SINGLE TOBACCO 2 295
ICE SPICE SHEESHA TOBACCO 2 200
BENSON & HEGDES GOLD BLUE TOBACCO 3 91.5
GOLD FLAKE LIGHTS-BIG TOBACCO 3 73
MINT FLAVOUR DOUBLE TOBACCO 3 280
CLASSIC MENTHOL TOBACCO 4 73
CLASSIC ULTRA MILD TOBACCO 4 83
Price change effect
Sales
Price
Item Name Volume
Change
Change
Price Sales Volume Price Sales Volume
Item Name Item Name SAMBUCA 28 -50
Change Change Change Change
SILVER APPLE
BUN MASKA & CHAI 17 70 BAILEYS IRISH
SINGLE 22 -15
SHAKE 17 -12
KHEEMA GHOTALA 18 15 CHEESE CAKE OF THE CHAMPAGNE
MEZE PLATTER 36 25 THE WEEK 52 -38
SHEESHA 6 -30
WHITE WINE
RED BULL ENERGY JR.CHL AVALANCHE 31 -50
DRINK 20 35 SHEESHA 6 -30
CAFFE LATTE 14 -7
GRILLED CHICKEN
KF DRAUGHT (1LTR) 22 11 CAPPUCCINO 17 -22 SAUSAGES -25 -44
AL SIKANDARI ESPRESSO 25 -27 MAGGI NDLTHAI
HOOKAH SINGLE 18 13 GREAT LAKES STYLE -11 -37
APPLE FLAVOUR FLOAT W VANILLA 20 -3
SINGLE 11 30 GREAT LAKES
• 17 out of 46 shown items
CALCUTTA MINT 28 62 FLOATS W CHOC 20 -31
MASALA CHAI shows positive response
JUICE HOOKAH SINGLE 18 90 CUTTING 25 -14 across categories
MINT FLAVOUR SINGLE 11 13 MIAMI MELONS 12 -19 • Tobacco/Hookah price
MISCHIEF HOOKAH THE CHOCO LATTE 15 -16
SINGLE 22 62
increase mostly has
ULTIMATE HOT
RABAT HOOKAH CHOCOLATE 15 -3
positive or neutral
SINGLE 18 84 HOEGAARDEN MUG response
LINDT CHOCOLATE (1 LITRE) 18 -62 • Most Beverage item’s sale
SHAKE -20 13 TUBORG 50 -38 has been decreased post
MT. BROWNIE -11 34 GREEN APPLE
COLUMBIAN SUPREMO FLAVOUR SINGLE 11 -20
price increase
(REG) -17 47 N R G HOOKAH 6 -12
LINDT HOT NIRVANA HOOKAH
CHOCOLATE -23 50 SINGLE 22 -7 price change w.e.f. 7th Jan 2011
COLUMBIAN SUPREMO
Price change effect
Price Change effect plot
100 18, 90
18, 84

Price increase, Sale 80 17,Price

70 increase, Sale
decrease 22,increase
62 28, 62

-23, 50 60
-17, 47

-11, 34 20, 35
40
% Sales Volume change

-15, 27 11, 30
36, 25
-20, 13 20 11, 13 18,
18, 15
13
22, 11

15, -3 20, -3
0 14, -7 22, -7
6, -12 17, -12 25, -14
-60 -40 -20 0 22, -15
15, -16 20 40 60
12,-20
11, -19
17, -22
-20 25, -27
6, -30 20, -31
-11, -37 50,52,
-38-38
-25, -44
-40 28, 31,
-50 -50

18, -62
Price decrease, Sale -60
Price decrease, Sale
decrease increase
-80

% Price Change
-100
We can generate more revenue through combo
menu (Tobacco + Food)
21lacs – If Total bills in a years data 69982 10.5lacs –
100% If 50%
Tobacco (Primary) – Avg. Price Rs. 350
conversio No. of bills with Tobacco item 33710
conversio
n n
Food (Secondary)

No. of Bills with Tobacco & Food 11726

No. of bills - Tobacco without Food 21984

Most bought food item - POUTINE WITH FRIES 3741

Price per plate 120

Discount if bought with Tobacco 20%

Max beverage quantity allowed in a given combo/per 1

bill
 We can generate more revenue through combo
menu (Food -Beverage)
9lacs – If Total bills in a years data 69982 4.5lacs –
100% If 50%
Food
conversio No. of bills with Food item 32422
conversio
n n
Beverage

No. of Bills with Food & Beverage 15774

No. of bills -food without beverage 16648

Most bought beverage - CAPPUCCINO 7144

price per shake 60

Discount if bought with food 10%

Max beverage quantity allowed in a given 1

combo/per bill
Conclusions and Recommendation
 Most of the revenue coming from singly category that is
Tobacco which is not a good sign for future.
 By offering combo menu, we can increase the share of
revenue from food and beverages.
 Café should re-look into the price changes of non-tobacco
items.
 Café can save the cost of manpower by changing working
hours as there is almost no sales during early hours.
 There are few menu items which are getting sold at very
low value or low quantity and same can be delisted from
menu list
Conclusions and Recommendation
 Café can offer discounts on Food and Beverage to increase
the share of revenue of same items.
 Café can loyalty program for best customers before that
café should track all the customer data.
 Café can be operated between 10AM-2AM as there was a
very little sale during early hours.