Vivonet wanted to know how weather impacted Frozen Yogurt sales. The result was intended to help yogurt shops be more successful by turning transactions into insights and opportunities for staffing, inventory, promotion and sales. By extension, this information could apply to other restaurants, like cafes, and further investigation could be made to see how weather impacts their business.
Analysts looked at the total sales for our U.S. customers that sell Frozen Yogurt from June 1 to August 31, 2012 and compared the data to the average temperature for each day.
The results from our study found that weather impacts Frozen Yogurt sales in June and appears to have more influence over sales at the beginning of the week, than the weekend.
Click here to view the Infographic
$69,867,008 of Frozen Yogurt sales were made by Vivonet clients in the U.S. between June 1 and August 31, 2012. The graph below compares sales by day for Boston (green line) with the maximum temperature for that day (blue line).
Click here to see the full size graph.
The Top 3 U.S. cities for Frozen Yogurt sales over the summer were:
- Boston $4,682,006
- Oklahoma City $4,176,134
- Cincinnati $4,086,469
By investigating Boston further, the top month for Frozen Yogurt was August.
- August $1,825,213.56
- July $1,728,672.62
- June $1,128,120.76
June appears to be more effected by weather with more variability than July and August. Daily sales in June ranged between $2,000 and $7,200 with temperatures varying from 53 to 97°F.
- June 4 vs. June 9 / 26 degrees hotter, $3,545 in increased sales.
- Monday, June 4 - 53°F - average sales per store $2,141
- Saturday, June 9 - 79°F – average sales per store $5,686
- June 18 vs. June 20 / 33 degrees hotter, $1,787 in increased sales.
- Monday, June 18 - 64°F – average sales per store $5,326
- Wednesday, June 20 - 97°F – average sales per store $7,113
- June 26 vs. July 1 / 18 degrees hotter, $1,784 in increased sales.
- Tuesday, June 26 - 73°F – average sales per store $4,836
- Sunday, July 1 - 91°F – average sales per store $6,620
The most lucrative day for Frozen Yogurt sales in Boston was Sunday, August 19.
- Sunday August 19 $71,928
- Sunday, July 15 $71,068
- Friday, August 3 $70,796
- Saturday, August 4 $70,677
- Sunday, August 26 $70,459
Sunday’s were the best day of the week with the highest sales and Mondays the lowest. Sundays had an average 30% increase in sales over Mondays. In summery the average sales over the summer for each day of the week are as follows:
- Sunday average daily sales $6,878.93 (80°F Average daily temperature)
- Saturday average daily sales $6,330.53 (78°F Average daily temperature)
- Friday average daily sales $6,166.20 (82°F Average daily temperature)
- Thursday average daily sales $5,814.83 (82°F Average daily temperature)
- Wednesday average daily sales $5,484.85 (80°F Average daily temperature)
- Tuesday average daily sales $5,325.64 (80°F Average daily temperature)
- Monday average daily sales $5,279.05 (78°F Average daily temperature)
Weekday vs. Weekend
Over the summer, the average weather on the weekend vs. the weekday differed by only 0.59°F and yet sales are better on the weekend over the weekday by approximately 20% ($1,088) on average, per day.
Weekend:Average Daily Sales $6451.24 and the average temperature was 79.82°F
Weekday: Average Daily Sales $5,363.18 and the average temperature was 79.23°F
- June is critical, its sets the tone for the rest of the summer. If you can win customers here, you set the business up for returns in July and August. And June appears to be more affected by temperature change than the other months. The reason appears to be that coming out of the coolness of spring, the first sign of hot weather and people are more likely to get Frozen Yogurt.
- In June, owner/operators should be monitoring the weather forecast and for the days the weather is above average, they should plan to sell more, staff accordingly and carry appropriate inventory to match increased demand.
- If weather impacts June, what about the rest of the year, particularly September. One assumption is that above average temperature in September will likely drive more sales similar to June.
After examining nearly four years of month over month same-store sales data, analysts found that restaurants using Vivonet’s cloud based POS outperform the average U.S. restaurant sampled by the National Restaurant Association. Results are documented in the white paper report entitled “Impact of Cloud POS on Performance of U.S. Restaurants”.
Overall, the same-store sales for Vivonet clients match the overall trend in data found by the National Restaurant Association with a couple of key differences. The main one being restaurants that run Vivonet’s POS system achieve higher same-store sales than the average. The last three years in particular, show a range that varies from .42% (June 2012) to 7.60% (August 2011) higher for Vivonet restaurants, with an average of 3.55% more same-stores sales than the average restaurant surveyed by the National Restaurant Association.
Analysts have identified the following reasons why restaurants that use Vivonet’s POS system outperform the average.
- Data Driven Insights Lead to Improved Management and Operations: With the Vivonet POS system, restaurants have access to reporting tools that help turn transactions into insights and opportunities that increase sales. (i.e. The Menu Item Report allows restaurants to identify which items are most or least popular and use the information to adjust prices, promotion or menu location to maximize sales.)
- Mobile Sales: Vivonet customers have the ability to create their very own app which integrates with the POS system. Restaurant customers can use the app to order off the menu, pre-pay and choose a pick up time. In 2012, one Vivonet customer will generate over $80,000 in additional sales from their mobile app serving three locations.
- Speed of POS system: Cutting seconds off an order makes a world of difference for quick serve and fast casual restaurants. The Vivonet POS system is designed to process orders quickly and move customers through the line faster. With one Vivonet customer, a café in Grand Central Station New York, conducting a transaction every 15 seconds at peak times.
The data in this report is from same-store sales revenues earned by restaurants for the current period and at minimum one year prior. The sample comes from Vivonet clients and the National Restaurant Association “Restaurant Performance Index”. As of July 2012, the National Restaurant Association surveyed 416 restaurants. As of August 2012, Vivonet examined the same store sales sample of 2,118 US customers removing 20% of outliers at the top and bottom of the scale to minimize the impact of data anomalies and establish a statistical average.
Vivonet is re-defining POS for the restaurant industry by combining cloud based technology with the Internet, mobile and social media. The POS solution, called Halo, delivers both front-line order taking and powerful enterprise reporting capabilities to help restaurant chains be more successful. Thousands of quick and full service restaurants in every state and province across North America use Vivonet.
In September, over $1 billion dollars in transactions will have been conducted this year using Vivonet’s POS system, Halo. Over 3,500 locations run on the Vivonet POS system with nearly 15 million checks being transacted to date. The company is on pace to reach nearly $1.5 billion dollars in transactions by the end of the year, the largest in the company’s history. This growth is fueled by clients like Joe Coffee in New York which Time Out magazine calls the “Best Coffee in NY” and their Grand Central Station location that does a transaction every 15 seconds at peak times. It’s also the thousands of locations that Sodexo manages using the Vivonet POS system, including university campuses like University of Texas and University of Massachusetts.
Vivonet is re-defining POS for the restaurant industry by combining cloud based technology with mobile and social. The Halo POS system gives restaurants of all sizes the tools, information and knowledge to drill down into all aspects of their business.
Restaurant owner/operators can access data in real time to find out what items are selling in their restaurants, where are they being sold, when are they being sold and who is doing the best job selling. The result helps cut costs and boost revenues by identifying opportunities to reduce waste, improve efficiencies, and implement new solutions that stretch operators' dollar further. Through a partnership with When to Manage, Vivonet customers can use their POS system to access an Inventory Management System with a “First In First Out” to better track food costs, and reduce waste. It also provides a Labor Scheduling System to control labor costs and minimize over-scheduling and the time to create and manage schedules.
Our mobile application allows Vivonet customers to have their very own Apple and Android app that integrates with their POS system. Clients like the extra revenue and improved customer service the app offers. And our client’s customers like the ability to use the app to order from their favorite restaurant and skip the line. In one example, a three location quick service restaurant client of Vivonet’s uses the app to deliver sales during peak times between noon and 1pm. Every lunch, there is a line-up out the door, there are not enough seats in the restaurant. The app allows customers to order and by-pass the line to pick up their order when they have limited time. This year, this restaurant chain will generate over $80,000 in sales from their mobile app that serves their three locations.
Finding the best Merchant Service Provider (MSP) can be overwhelming and costly if you're not aware of the potentially numerous charges levied on cafés and restaurants by card associations and merchant service providers. Merchant services enable cafés or restaurants to process credit card payments and deposit funds into their bank account.
The process to get a MSP can be a long and involved as there are thousands of options. The following are four key areas to consider when selecting an MSP.
1. Processing Rates
The processing rate is the percentage charged to the café or restaurant based upon the customers purchase. The rate can range anywhere from 1 to 5 percent or higher as re-sellers may also charge a fee on top of the processing charge. The actual rate can differ for each customer depending on their bank , the type of credit card and how the transaction is conducted. For example it’s possible for merchants to pay higher rate on a transaction if the customer has a Visa Signature Preferred card rather than a Traditional Rewards card. (Click to view Visa Interchange Rate )
2. Transaction Fees
In addition to the processing rate, a transaction fee may also be included. The transaction fee would be charged on each and every purchase. The amount ranges anywhere from $0.25 to $0.50 per transaction. Some providers even require a minimum monthly transaction fee. This fee can be very costly for merchants like cafés who have a low average check size but a high volume of transactions.
3. Pin Pad Cost
There is a cost to using a pin pad whether it’s renting, leasing or buying. If you decide to purchase, ask for details on the warranty period.
4. Batch Times
Batch times represent when bank deposits will be made into a merchants account. Times vary anywhere from two days to as long as two weeks. This information is critical to cash flow, especially if a restaurant is located on the West Coast and the merchant provider is on the East Coast where batch times may end at 12am (EST) and 9pm (PST).
There is no official ranking of an MSP so it’s a good idea to ask around and search online for reviews. The most important question to answer is how fees are structured. Vivonet works with a multitude of MSP’s and if you don’t have one, we can recommend one to fit your needs.
Vivonet is re-defining restaurant POS by combining cloud based technology with the Internet, mobile and social media. Learn how we can help your café or restaurant by contacting Sven Winter at firstname.lastname@example.org .
Starting a new café or restaurant is risky business. According to a Dunn and Bradstreet report, the restaurant industry has one of the highest failure rates among the retail and service industries. Beyond the standard location and planning the menu there are two key elements an owner/operator of a restaurant should consider to succeed and avoid becoming one of the 60% who typically fail in the first three years.
The first is to find your niche. At Vivonet we have some very unique clients like;
- Point Street Pianos - a dueling piano bar in Rhode Island
- Sweet P's BBQ – Which includes the “El Gigante Comida" a 4 lb. BBQ Burrito featured on the television show "Man vs Food"
- Momofuku Milk Bar - The chef David Chang won the James Beard award for best chef in NYC. This is a spinoff of the original restaurant that specializes in desserts, they even differentiate between "cereal milk" and "coffee milk."
The second is to turn your transactions into business insight. In a recent article entitled “How to Open A Specialty Restaurant” featured in the small business section of Fox Business, Kirstin Carey, who owns Scottsdale, Ariz.-based restaurant Nourish (not a client of Vivonet), warns those who want to open their own eatery to treat it like a business, rather than just a restaurant. She goes on to say "Of all the businesses I've owned or been part of, the food industry has to be the easiest one to fail in," she says. "I think it's because many restaurateurs are just so excited about their food or the concept that they don't stop to really run the numbers."
Vivonet could not agree more and a big reason why our clients love working with us because the reporting they see from the transactions conducted through our POS system and use the information to help them run their business. Through a secure website, owners and operators of café’s and restaurants can use their PC to log in and view the performance of their location(s). A few of the reports include;
- Menu Item Report - Know which items are most popular, and use the information to adjust prices, promotion or menu location to maximize revenue
- Comparative Sales Report - Review performance by day, week or month to see busy versus slow periods and adjust employee schedules to staff accurately
- Sales and Operations Report – Reduce theft by monitoring transactions to ensure sales are accounted for and cash to be remitted is accurate
Vivonet is re-defining POS for the restaurant industry by combining cloud based technology with the Internet, mobile and social media. Learn how we can help your business by contacting Sven Winter at email@example.com.