Restaurant Sales Forecasting: How to Calculate Earnings Data

What’s a Restaurant Revenue Forecast (and Why You Want It)

Restaurant forecasting can maximize your decision making in almost all facets of business operations. Whether you will need a quote of how much coffee to order next week or how to schedule your employees over the holidays, a restaurant revenue forecast can allow you to create the best possible choices.

How Can You Forecast Revenue ?

A restaurant forecast is vital for maintaining your business operations at an optimal level. But, how can you compute restaurant revenue before they happen?

The formula is extremely simple and it may be done by hand or by using data from a restaurant POS system. You do not have to be a math wizard to make the fundamental data that can allow you to grow your company. Standard mathematics and logical assumptions are often enough to create useful sales forecast data.

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The fundamental formulation version is the following:

A(n*fm) + B(n*dm) = C

In the formula, A stands for the amount of covers (which is the number of meals served multiplied by the expected average earnings ), B stands for the amount of drinks multiplied by the anticipated average of earnings, and C would be the final projected earnings forecast.

Why Conduct a Restaurant Revenue Forecast?

Conducting a restaurant sales prediction is vital for smart decision-making and planning. Using restaurant data analysis to maximize your business operations can allow you to control costs. Additionally, it will help you make better choices concerning regular expenses and operations, labor and inventory requirements and costs, plus a whole lot more.

Accurate forecasts prevent over-ordering while also assisting you to be sure that you meet inventory demand. They help prevent waste and spoilage, and they’ll help you always have your guest’s favorites in stock.

When it comes to labour costs and requirements, a comprehensive forecast can help managers create appropriate employee schedules. It will help ensure correct staffing levels for the best guest experience at the lowest cost.

How to Conduct Restaurant Forecasting

If you are still wondering how to forecast information and would like to go more into detail, we have prepared a step-by-step manual:

Calculate the Baseline

Begin by calculating the baseline of your own restaurant capacity. It’s the estimated daily revenue number which can allow you to create your whole forecast.

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Estimate the Number of Visitors

Not every restaurant works for the exact same amount of hours, and not everybody has the exact same number of visitors at each period of the day. Count the amount of tables and the amount of seats at each table, estimate the number of distinct clients can turn at one table during working hours, and do the exact same for each table.

Include Additional Purchases

Not every guest will have a drink with their meal, so to make an accurate prediction, you need to account for drinks separately. In addition, don’t forget to put coffee to the calculations, especially in case you have guests coming over just to get a cup of coffee away from the lunch/dinner period.


When you have all of the estimated data, it is time to turn your everyday prediction to a monthly forecast. After adjusting expectations and estimates for every month, you can run your annual restaurant forecast.

How to Take Advantage of Your POS Data

Your POS data is the most valuable tool you can have for optimizing employees, operations, stock, and inventory levels. Knowing your estimated sales can allow you to make the appropriate decisions about inventory and buying. The data you receive from your estimates will assist with under-ordering, inventory shortage, over-ordering, and a lot of other issues that result in dissatisfied customers. If you know the specific information about last Friday’s earnings, then you can estimate how the forthcoming Friday may go.

Sophisticated enterprise POS systems offer insight into customer behaviour and exact data you can use to grow your business and update your operations.

Revenue Forecast Example

Let’s say you have a restaurant which has 15 tables for four. Ideally, on a busy day, all 15 tables will be filled with four people sitting at each. During dinner hours, a single table may take two turns of guests. With these quotes, you can anticipate that the kitchen will be serving 120 chief courses per evening.

If your typical per-person price is $20, your projected sales prediction will go like this:

Number of tables (15) x Guests per table (4) x per-person price ($20) x Table turns per day (two ) = $2400.

As you can see, your restaurant revenue prediction on a busy day with our imagined restaurant is $2400. However, to get more precise information, you also have to consider quiet evenings, also.

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