Applied Predictive Technologies (APT) today launched a special index to help UK restaurant chains gain valuable insights into how their stores should be performing based on the local economy.
The APT Index aggregates in-store data at over 10,000 restaurants and retail chain stores across the UK.
The data integrates sales and transaction data with weather, demographic, competition and other factors that can impact customer behaviour and sales at a given location. This enables APT to provide unique benchmarks for each location, allowing stores and restaurants to compare their performance against stores in their local area.
The data can also be used for management reporting, allowing retail and restaurant chain managers to understand what are the top and bottom performing locations, how this relates to their overall store performance and more.
For instance, by comparing two stores with depressed sales in different cities against the local average store performance, organisations will be able to better understand whether the decrease in sales is caused by local economic factors or by specific management decisions.
This approach to segmenting and comparing the results to the local environment can uncover the drivers of over- or under-performance and allow more effective decision making.
Moreover, companies can use the index to monitor how their performance is impacted by disruptive weather conditions, major events and national marketing initiatives such as launching a national ad campaign.
Rupert Naylor, senior VP at APT, said: “The APT Index offers unique insight into how external events and other factors impact customer behaviour and sales. It is extremely important for retailers and restaurant chain executives to determine how these changes affect each of their locations and accurately evaluate performance, after accounting for local economic factors.
“This approach can not only help them make better business decisions about important initiatives such as rewarding managers and evaluating marketing programmes, but it can also drive more competitive products and services by allowing managers to better understand customer behaviour.”