Make effective sales forecast for restaurant for next year

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A local restaurant has sought your assistance as a consultant. The restaurant has daily revenue data available for the past three years. The restaurant is closed for Thanksgiving, one week in December, and one week in January. A local special event is occurring next year that will draw a significant amount of tourism to the area. The restaurant is expecting an increase in business by 15%. In addition, local professional sports teams are performing well, contributing to an increased sales forecast of 5%. The most recent year sales are $865,000 per year. Sales for the last three years, from most recent to last recent, were $886,000 (year 3), $875,000 (year 2), and $925,000 (year 1). The restaurant seeks an accurate forecast, as it cannot afford to make a mistake in labor and food budgets.

Make an effective sales forecast for the restaurant for next year using the information provided. Explain your approach.

Reference no: EM133252597

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