This is an introduction to 5 steps to getting success in a changing restaurant industry.
It hardly matters if your aim is to get capital investment, expand your restaurant franchises or optimize your restaurant territories. Deep Customer Analytics and insights play a key role in differentiating the restaurant players who are growing from the ones that aren’t.
Technology and Analytics are crucial to meet your business goals and grow your revenues.
While working with some of the best and most successful restaurant customers, I came up with the following simple steps to meet success in the fast-changing restaurant industry and thought of sharing them with you. To gain more insights on each step, I will be sharing them with you in series of articles focusing on each step in one article.
I am giving you the overview of all 7 steps which I shall discuss with you in detail in coming articles:
Step 1: Define and Know Your Exact Target Restaurant Customer
In this step, we will try to understand what is restaurant target marketing and its importance for your restaurant business.
How to define your restaurant customer profile or target customer based on the demographics?
Customer profiling gives you an understanding of who your customers are as consumers.
Concluding this step with improving your restaurant business with information about your target customer.
Step 2: Analyzing your Restaurant market potential and mapping it to industry trends
In this step, we will discover the feasibility of expanding or continuing a restaurant in a preferred region. This depends on various factors:
Restaurant Industry trends – Identifying opportunities and threats in the industry.
Restaurant Concept – Understanding customer preference plays a vital role in developing an appropriate concept
Study and compare your restaurant competitors in the market by analyzing demand and market opportunities in the existing market area.Study and compare your restaurant competitors in the market by analyzing demand and market opportunities in the existing market area. Click To Tweet
Size of your restaurant – Making the seating arrangement depending on the number of people residing near your restaurant.
Apart from customer demand, it is also important to analyze the market carefully. Your restaurant will surely stand high to complete in the restaurant industry if executed properly.
Step 3: Restaurant Business Expansion
Identifying the greatest number of potential customer that live in the selected market.
What are the threats, substitute products & services, the intensity of competitive rivalry for restaurant business in the proposed market?
Step 4: Develop Trade Area analytics for your restaurant
Define an exact trade area around each site to forecast revenue and make more effective marketing campaigns, and to show where you are underserving areas or where you are cannibalizing sales from another site.
By defining an exact trade area around each of your locations, you can capture all the sales potentials without over-saturating the market.
You will able find answers to the below list of questions after performing trade area analysis and mapping:
From where are the restaurant’s customers coming from?
What is the total number of the restaurant customers you have in a trade area?
How to look for more customers for my restaurant?
What are the benefits of Trade area analysis?
Factors impacting trade areas?
Step 5: Restaurant forecast
In this step, I will discuss the implementation of models and methodologies for restaurant forecasting.
How to know your restaurant’s rush hours and low activity levels?
Importance of right historical sales data to conduct sales forecasts.
Impact of weather in restaurant’s volumes and how to improve sales forecast with the weather?
How to control under or over buying and under or overstaffing with the help of forecasting?
Sales and demand forecasting are crucial for restaurant chains and for independent restaurants as well.