# Forecasting at Hard Rock Cafe

Pages: 3 (725 words) Published: November 19, 2012
For the following case:

View the Video Case for Chapter 3 for OMMyLab
Bulletize the following (so that the case can be understood fully from your bullets and not have to read the case) •Clearly articulate the question(s) you are answering before providing you answer •Quantitative Issue

The manager is trying to evaluate how a new advertising campaign affects guest counts. Using data for the past 10 months (see the table) develop a least squares regression relationship and then forecast the expected guest count when advertising is \$65,000. (Provide the answer to your boss and then provide the model as backup) •Qualitative Issues

1.Describe three different forecasting applications at Hard Rock. Name three other areas in which you think Hard Rock could use forecasting models. (Justify your choices) 2.What is the role of the POS system in forecasting at Hard Rock? 3.Justify the use of the weighting system used for evaluating man¬agers for annual bonuses. 4.Name several variables besides those mentioned in the case that could be used as good predictors of daily sales in each cafe.

Forecasting at Hard Rock Cafe
With the growth of Hard Rock Cafe—from one pub in London in 1971 to more than 129 restaurants in more than 40 countries today—came a corporate wide demand for better forecasting. Hard Rock uses long-range forecasting in setting a capacity plan and intermediate-term forecasting for locking in contracts for leather goods (used in jackets) and for such food items as beef, chicken, and pork. Its short-term sales forecasts are conducted each month, by cafe, and then aggregated for a headquarters view. The heart of the sales forecasting system is the point-of-sale sys¬tem (FOS), which, in effect, captures transaction data on nearly every person who walks through a cafe's door. The sale of each entree repre¬sents one customer; the entrée sales data are...