A Bayesian approach for predicting food and beverage sales in staff canteens and restaurants

Konstantin Posch, Christian Truden, Philipp Hungerländer and Jürgen Pilz

International Journal of Forecasting, 2022, vol. 38, issue 1, 321-338

Abstract: Accurate demand forecasting is one of the key aspects for successfully managing restaurants and staff canteens. In particular, properly predicting future sales of menu items allows for a precise ordering of food stock. From an environmental point of view, this ensures a low level of pre-consumer food waste, while from the managerial point of view, this is critical to the profitability of the restaurant. Hence, we are interested in predicting future values of the daily sold quantities of given menu items. The corresponding time series show multiple strong seasonalities, trend changes, data gaps, and outliers. We propose a forecasting approach that is solely based on the data retrieved from point-of-sale systems and allows for a straightforward human interpretation. Therefore, we propose two generalized additive models for predicting future sales. In an extensive evaluation, we consider two data sets consisting of multiple time series collected at a casual restaurant and a large staff canteen and covering a period of 20 months. We show that the proposed models fit the features of the considered restaurant data. Moreover, we compare the predictive performance of our method against the performance of other well-established forecasting approaches.

Keywords: Sales prediction; Time series; Generalized additive models; Bayesian methods; Shrinkage priors (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:intfor:v:38:y:2022:i:1:p:321-338

DOI: 10.1016/j.ijforecast.2021.06.001

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