The analysis aims to focus on what could be learned from the data that will help keep the business healthy. By healthy, we mean reduced costs of production, good shift management, and maximizing revenues from opportunities. Below are insights from the analysis but more will be learned from the notebook(.ipynb file)
INSIGHTS
-
Acquiring a chicken supplier would help bring down the costs of production for chicken-based pizzas. This is because they are the best sellers and keeping some extra dollars per sale improves Pizza Hut's financial health.
-
Acquiring a vegetable supplier would also help cut costs of production first with the control to maximize/expand common resources and the ability to absorb shock from events that manipulate prices.
Sourcing all vegetables from one/two suppliers would also help cut costs like logistics.
-
Up/Cross-selling is best done with Pepperoni Pizza, Hawaiian & The Barbecue Chicken Pizza because they are the fastest moving which positively correlates with customer preference. This improves chances for up/cross-selling being successful.
-
The worst selling could be used in a promotion deal with it being offered with a free beloved piece, say, Buy 1 Large Mediterranean Pizza and get a Small Pepperoni Pizza! or any other suitable method. It could also be paired with free accompaniments. The aim is to improve awareness.
-
Thursday, Friday & Saturday have the highest sales. They should be utilized for up/cross-selling as people spend more. They also need a higher number of staff than the other days. This may mean a lesser number of offs within the three days.
-
Sunday has the lowest revenues which we translate to less activity. A higher number of staff could have their offs then to Wednesday.
-
Pizza Hut could consider dropping sizes XL & XXL as they bring in the lowest revenues. Their dropping could help them utilize resources efficiently.
In addition to that they should maximize revenues from Large size as possible, being the fastest moving. This could be realized by minimizing the costs of production.
- There is a gradual increase in activity from 1500-1800 hrs. This means a higher number of staff is needed then to enhance efficiency and customer satisfaction.
The highest revenues are realized between 1100-1300 hrs, staff number should be higher at this point as well. Staff numbers would be decreased between 2000-2300 hrs as there is a gradual decrease in activity.