There are alternatives! Yes, you heard right. Every business is right now facing tipsy-turvy changes in their operations due to technology solutions, customer preferences, digitization, and the restaurant industry is not an exception. Instead of dwelling out, come up with productive ways that save your restaurant business from failing down.
If you are engaged with a restaurant or food business, you might know how it keeps evolving over the years and what efforts you have to invest in keeping pace and surviving in the cut-throat competitive world.
If your restaurant business is struggling, you are not alone.
Managing the restaurant business is no longer a cakewalk because customer’s preferences keep changing with time and technology solutions.
According to a study conducted by Ohio State University, more than 60% of restaurants don’t even enjoy success in the first year. There are lots of reasons why there is a high failure rate in the restaurant segment. Several reasons are changing customer’s preferences, thin margins, wrong location, and in the era of the Internet and smartphone, the poor digital experience could be one of the reasons behind your failure.
Earlier, food quality was the only parameter that measures the success of any restaurant. But now, this alone will not be enough to turn your restaurant into a lucrative, profitable business.
New Face of Restaurant Business
Innovative technology solutions have made the world a global village. According to Statista, here you can see the usage of mobile phones, digital payment systems, online ordering, etc. has been playing a significant role. People today rely more on mobility solutions, affecting the restaurant industry up to a great extent. Technological solutions are developed to make people’s lives easier; it also streamlines business operations and saves millions of bucks that would have been spent on laborers.
Today’s technology trending words like food ordering apps, artificial intelligence, digital kiosk, digital menu, smart devices, etc., have changed the restaurant industry’s face.
There is no hidden secret that technology has always had a positive impact on the restaurant business. Let’s see what some major changes the restaurant industry has gone through recently are.
- The online food delivery market is exploding, and now people have a minimum of two food delivery apps on their smartphone and at least access them three times monthly. [1]
- 99% of Gen Z and millennials choose a restaurant based on social media recommendations; therefore, social media marketing has become an important part of any kind of restaurant business. [2]
- Another major change is switching from a paper menu to a digital menu; according to Networld Media Group, digital menus boost sales and provide tailored recommendations to customers that eventually drive incremental revenue. [3]
- Almost 80% of restaurants use technology like online ordering, online reservation, and restaurant apps to run their business more efficiently. [4]
- Finally, 68% of restaurant entrepreneurs believe that implementation of technology, social media presence, good ambiance, etc., have helped them improve customer experience. [5]
The above statistics clearly define that there is too much cooking in the restaurant industry, and adapting to those trends is the only way to stay ahead of the restaurant industry’s rapid growth.From digital ordering to social media to emerging cloud kitchen concepts there is much more you need to consider. However, not every one of them enjoys the same level of success. How to make your restaurant business profitable and save it from falling apart are the first set of questions restaurants have in their minds.
If your restaurant does not achieve its desired goals, it’s time to implement a strategic approach and turn the table around. Here we have come up with several productive ways to prevent your restaurant business from failing and amplifying your revenue quickly.
Work On “Customer First” Mindset
Providing top-notch customer service is the cornerstone of the restaurant industry. Along with food, focusing on customer service can give you a double yield on your investments. This sphere relies on the formula that the customer is your first priority over anything else.
The level of customer service usually determines whether he/she will spread positive word of mouth or warn everyone to avoid your place. (source)
According to Harward Business School study, developing an emotional connection with customers is important for a restaurant, as they become 27% more valuable to them.
The usage of the right modern tools such as customer surveys, chatbots, personalized recommendations helps you provide the ultimate customer experience—all you need to offer them anticipatory service and solve their problems before they happen.
Investing in Restaurant Technology
As mentioned earlier, innovative technology solutions have transformed the face of restaurants. Living in the digital era, investing in advanced technology solutions can’t be understated as customer’s reliance on technology is increasing. Be its inventory management, ordering platform, reservation platform, or anything else.
Restaurant owners can no longer believe that investment in a technology solution is luxury, but now it is necessary for growth. According to one of the restaurant technology resorts, customers prefer restaurants that offer reservations, ordering, and free wifi facility. (source)
Implementation of modern technology such as digital ordering, reservation, and digital loyalty programs often encourages repeat patronage and builds brand advocacy in the market. Well, implementation of technology may seem expensive and difficult, but its benefits outweigh the disadvantages.
Advertising Your Restaurant is Paramount
In the Internet age, you need to think beyond serving quality food. You can not achieve success by just serving good quality food; you also need to get the word out. No doubt, word of mouth is one of the best marketing techniques, but in order to drive more sales and profit, you should have strong knowledge of restaurant marketing ideas that help you reach new customers daily.
Here are some latest techniques you can follow:
- Go social ( Instagram, Facebook, Twitter)
- Use chatbot ( for customer assistance)
- Get listed on renowned sites ( Yelp, OpenTable, and TripAdvisor)
- Manage online reputation (reviews and ratings)
Having a weak online presence will result in no business. A well-crafted marketing strategy helps you increase visibility, enhance brand value and ensure long-term success.
Train Your Staff to Excel
Having the cordial staff for your restaurant business is another key to the path of success. You should have a team of polite and well-mannered staff who guide customers, treat them well and resolve their problems wisely. Usually, unhappy customers need a solution to their complaints and train your staff so that they listen to complaints and resolve them as soon as possible.
In short, you need a staff of intellectual and passionate people to help you achieve your goals and vision. However, it is not easy to find the right people for the job, but if you cultivate them properly and share your vision, you can build a good winning team that saves your restaurant from falling apart and stands with you no matter what.
Bonus: Save Your Restaurant Even Amid Contingencies
Keep the above suggestion in mind and save your restaurant from falling apart.
Indeed, the current pandemic crisis has hit the restaurant and travel sector, but the adoption of technology and a strategic approach can save you. More and more restaurants are revamping their existing model and improving the bottom line.
If you really want to stay one stead ahead in the competitive business curve, start work on the above techniques that elevate your business quickly and gain the bulk of interest and take your business to a new level.
