Clustering refers to an exploratory data analysis technique that can identify subgroups in

data. In other words, clustering is the process of classifying objects into a number of groups

wherein each group, objects are very similar to each other than those objects in other groups

(Tyagi, 2021).

Being an important analysis method in machine learning, clustering is used for identifying

patterns and structures in labeled and unlabeled datasets. Here our focus of this discussion will

be how the restaurant business can be benefited from using clustering methodologies

Consumer segmentation

Cluster analysis can identify consumer segments. To do this, the restaurant manager can use

demographic, psychographic, and behavioral data as well as performance data to cluster their

consumers for a particular dish category. By doing this, they can leverage this information to

tailor their marketing messages, product assortments, and the overall meal experience to meet

their customer’s needs and increase their profit.

Delivery optimization

Nowadays, restaurants sell their food through online delivery in huge numbers. They can look to

optimize their delivery process using clustering. The delivery process can be monitored to find

the optimal launch locations, routes, and destinations for the customer.

Document sorting and grouping

A restaurant can group electronic files according to category, tags, content, or frequency of use

using clustering. The algorithm views each document as a vector and the frequency of certain

terms to classify and group the documents.

 Customer retention

A restaurant can use clustering to analyze and group customer churn to identify and profile their

consumers based on retention. they can use variables such as frequency of purchases, how

recently the consumer visited the restaurant, average spend per trip, and meal composition to

analyze and predict retention rates of customer segments.

Discount analysis

A restaurant can use clustering to analyze different groups of consumers according to their

discount purchase behaviors. Customers may be more likely to purchase bundled meals with an

everyday-low-price strategy. they can use the algorithm to identify purchasing patterns among

their consumer and use this information to make decisions regarding pricing and promotional

strategies.

References

Tyagi, N. (2021, February 14). 5 Clustering Methods in Machine Learning | Clustering Applications.

Retrieved September 6, 2022, from https://www.analyticssteps.com/blogs/5-clustering-methods-

and-applications