Forecasting Overview: what it is and how it works

Tenzo was born from the mind of restaurateurs and is specifically designed to make the life of restaurateurs easier. We do this by giving you two main features:

• We put all your data together in one place (POS, Inventory, Labour, Social) and in the form of easy to read reports.
• We forecast your future sales with an accuracy that is 50%-75% higher than a 4 weeks average. Here is a case study on how Tenzo's forecasting worked for Nando's Singapore.

Tenzo Forecasts your future sales using AI

How does Tenzo Forecasting AI work?

We put together multiple types of data, in a sort of 6-layers sandwich:

1. Historical Sales: How is your business trending throughout the years? Is it growing 10% every year? Is it staying the same? We use all your historical data to inform our forecasting.
2. Seasonality: Do you have better sales during Winter or Summer?
3. Days of the Week: Do you sell more on a Saturday than on a Monday? Our forecasting takes into account how the day of the week impacts your sales on a given day.
4. Events: We have a calendar that includes all events that may be relevant to your business; e.g. Will the final of the World Cup help sales? How do St. Valentine's day, Mother's and Father's day impact? 
5. Weather: We receive live data of weather forecast, both historical and future; e.g. will it rain tomorrow? Has it rained on the same day last week or last year, and how has it impacted the performance?
6. Manager Adjustment: our forecast can be adjusted by General Managers or Head Office, to inform our algorithm on circumstances that Tenzo is unaware of, such as roadworks or broken equipment that will impact sales. We have seen that the Manager's adjustment can reduce the error up to 10%.

FAQs

Here you can find a list of the most Frequently Asked Questions about Forecasting:

• Forecasting your future sales

• What's the difference between budgeting and forecasting in Tenzo?

• Can our sales forecast be adjusted by managers?

• What is the forecasting MAPE?

• How can I track the accuracy of Tenzo’s forecast?

• What is the smallest time interval Tenzo can forecast for?

• How much historical sales data does Tenzo require for the forecast to be accurate?

• Can I add a sales forecast even if Tenzo has not generated one?

• How do we include local or custom events into our sales forecast?

If you'd like to learn more about our product and how we have brought value to our customers, you can also have a look at our Tenzo blog.

In case you have any question that is not on the above, please drop us an email at [e-mail] and we will be happy to assist you!

Happy Tenzo'ing :)

#forecasting