2. FORECASTING FOOD AND BEVERAGE SALES
Operating a viable and profitable food business starts with an
identification of specific, measurable, and realistic sales forecast, also
known as sales projection
A sales projection or sales forecast provides figures regarding the number
of covers, average check, amount of revenue and profit that the food
business wants to generate.
With this sales target in mind, the management can design product
3. FORECASTING FOOD AND BEVERAGE SALES
Aside from serving as a guide for direction setting, the sales forecast helps
to determine whether the business can generate enough sales to cover for
the fixed cost and at the same time make a good return of one’s
investment.
4. ADVANTAGES OF A SALES FORECAST
The sales forecast is an important tool for decision-making. Budget allocations will depend on expected
earnings. The volume of stocks wo be ordered and purchased will depend on the projected volume of
covers or patronage.
Sales forecast serves as a parameter for assessing the progress of business. One can say business is
doing well when the sales and profit targets are being achieved.
The forecast is a motivating tool.
5. PROCEDURES IN SALES FORECASTING
Get a record of monthly revenue, covers and average check for the past year.
6. PROCEDURES IN SALES FORECASTING
Enter the projected increase in covers and average check on reliable assumptions.
• A “Cover” refers to servings consumed per customers. Consumption of one “dine in” customer is equivalent to
one cover.
• Average check is the average amount of consumption of one customer. It is computed as:
Average check = Total sales
Total covers
• The average is expected to increase when menu prices increase and when servers exert more efforts in menu
merchandising.
7. PROCEDURES IN SALES FORECASTING
Compute for the sales forecast using the formula:
• Sales = Number of covers X Average check
