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Building Forecasting Models for Restaurant Owners and Managers: A Case Study

Building Forecasting Models for Restaurant Owners and Managers: A Case Study Small business entrepreneurs like restaurant owners are at the constant mercy of fluctuating demand patterns. Many independent restaurateurs suffer from poor collection of data, limited resources, and lack of knowledge to build sophisticated forecasting models. They often use simple rules of thumb or simple moving averages to create naïve forecasts that do not serve them well. In this paper, we introduce a case with data from a small independent restaurant to show how they can use spreadsheet software like Excel to build a robust forecasting model that captures the trend and seasonality of their data. We analyze different forecasting models and compare the effectiveness of each using Mean Square Error (MSE). Keywords: time series forecasting; small business; restaurant; case research study JEL codes: A22; C53; C80 http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Journal of Entrepreneurship Addleton Academic Publishers

Building Forecasting Models for Restaurant Owners and Managers: A Case Study

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Publisher
Addleton Academic Publishers
Copyright
© 2009 Addleton Academic Publishers
ISSN
2164-9685
Publisher site
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Abstract

Small business entrepreneurs like restaurant owners are at the constant mercy of fluctuating demand patterns. Many independent restaurateurs suffer from poor collection of data, limited resources, and lack of knowledge to build sophisticated forecasting models. They often use simple rules of thumb or simple moving averages to create naïve forecasts that do not serve them well. In this paper, we introduce a case with data from a small independent restaurant to show how they can use spreadsheet software like Excel to build a robust forecasting model that captures the trend and seasonality of their data. We analyze different forecasting models and compare the effectiveness of each using Mean Square Error (MSE). Keywords: time series forecasting; small business; restaurant; case research study JEL codes: A22; C53; C80

Journal

American Journal of Entrepreneurship – Addleton Academic Publishers

Published: Jan 1, 2016

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