Better Profits

Sales & Guest Forecasting

Posted on Dec 4, 2005 in Better Profits, How We See It Blog, Operations by Jeffrey Summers 0 Comments

After receiving way too many emails asking me about formulas, I’m posting them for anyone else. But for those who want a more specific worksheet to their business here are the formulas you need to know to help determine your forecasts. Or else you can email me and I’ll create one for you.

1. Avg Sales per guest = Total sales/number of guests served
2. Variance = sales this year – sales last year
3. Percentage variance = (sales this year – sales last year)/sales last year
4. Percentage variance = variance/sales last year
5. Or Percentage variance = (sales last year/sales this year)-1
6. Revenue Forecast = sales last year + (sales last year x % Increase Estimate)
7. Or Revenue Forecast = sales last year x (1 + % increase estimate)
8. Guest Count Forecast = Guest count last year + (Guest count last year x % increase estimate)
9. Or Guest Count Forecast = Guests last year x (1 + % increase estimate)
10. Sales per guest forecast = last year’s avg sales per guest + estimated increase in sales per guest
11. Or Avg Sales per Guest Forecast = Revenue forecast/Guest count forecast

Hope this helps.

Have Fun Today!