The Fast Casual Sector is Showing Rapid Growth According to Leading Industry Analysts

According to the NPD Group, a leading market research company, restaurants falling into the ‘fast casual’ sector are the only restaurants showing continued growth in the present economic downturn.  This trend has caused many restaurants that were not previously placed into that category to modify their appearance, menu, and prices in order to be placed there.  Growth is growth, and if the restaurant industry wishes to find a way out of the slump – this is one way to do it, according to forecasters.  

The idea of fast casual restaurants relies on the concept of an upscale quick service restaurant (QSR), in which better service and a higher quality of food is offered than what is available at most fast food chains.  While the menu prices might be slightly higher than those seen in fast food restaurants, customers are paying attention to the higher quality of food and service and are willing to pay more to get both. 

 According to Bonnie Riggs, a restaurant industry analyst at NPD, “Many fast casual concepts were positioned as a fresh, made-to-order alternative to traditional fast food options, and consumers responded positively. Although some fast casual concepts faltered, consumers responded positively to the concepts that offered a new fast food dining experience. The segment benefited from fast food consumers trading up and full service consumers trading down.”

This growth in the fast casual sector is also due to healthier menu options than what is offered by many fast food restaurants – something that consumers are demanding, regardless of the prices reflected on the menu.  In addition to healthier options, customers are also attracted to the trendy interiors and higher-quality service that most fast casual restaurants offer. 

Word-of-Mouth is Still your Best Source for Increased Business

According to recent consumer polls, a customer’s choice of restaurant is primarily due to word-of-mouth referrals from previously satisfied clients within their family or social network.  When a satisfied customer visits a restaurant and has a pleasant dining experience, the referral from them to their friends, co-workers, family members and social networking groups reaches a lot further than any marketing campaign could possibly reach.  

This is why it is so crucial for restaurants to maintain good relationships with their customer base.  When a restaurant keeps a steady stream of communication open, customers feel more attached to the establishment.  The idea of marketing a restaurant is reduced to simply communicating with your customer base, and when this happens, you’ll find that those customers will likewise communicate with their friends, relatives, and co-workers about how pleased they were with the service and food quality offered.  They will also communicate just as quickly with that same extended network when they are unhappy with your establishment. 

Keeping positive word-of-mouth referrals going is important, and there is no better way to do this than to give your customers a reason to spread the word about your restaurant.  Sometimes, this can be as indirect as making a Facebook page and requesting that your customers ‘Like’ your page; other times, this can involve more direct email campaigns that encourage your customers to spread the word about the great food and relaxing atmosphere your restaurant offers.  You can be sure that if they are satisfied with your food and services, they will certainly tell their friends about it. 

How the Experience Changes a Customer’s Attitude Toward your Restaurant

Do you ever wonder what brings customers back to the same restaurant, time and time again?  How is it that one restaurant can be sitting mostly empty at dinner time, while the restaurant across the street is bustling with customers from the moment it opens until the moment it closes?  Is it a difference in quality of food or quality of service?  Or is it something else entirely…?

The answer to this question can be found by looking at customer motivation and what drives them to return to the same establishments, time and time again.  Most respondents, when asked why they choose a particular restaurant, will cite reasons such as quality of the food and price, but if restaurants offer similar prices and quality, they will choose one over the other based on one simple concept – the experience they have while eating there.  

The experience of eating out is crucial to building and maintaining a customer base.  If you want to bring more customers to your establishment, focusing on the customer’s experience while they are there is important.  From the moment they walk in through the door, to the moment they receive their order, to the moment they leave – making sure your customers have a good experience is important in making sure they’ll come back…and that they bring their friends!

Focusing on how well the customer is treated by every staff member with whom they come into contact is important, as is focusing on the comfort and convenience of everything in the place – from how the tables are arranged to how the restrooms are stocked. All of these factors contribute to the overall experience of your customers, and all of these factors are what subtly influence them to either like a place or not like it.  

Growth Through Insight: What 2012 Holds for the Restaurant Industry

The food service and restaurant industry, like many other industries, took a huge hit during the economic downturn that began in 2008.  When people are struggling financially, eating out is one of the first things they cut from their budget.  The result of this is that restaurants that had previously been swarming with customers – particularly high-end restaurants – have experienced decreased numbers in clientele and sales, forcing many to cut back on their quality, or even close down.  

That’s why market researchers have insisted that growth through insight is crucial in order to keep the food services and restaurant industry afloat in tough economic times.  The forecast for 2012 and beyond is that consumers will place growing importance on things like freshness, locally-grown products, and cost, while still demanding excellent quality and service.  

Now that diners are slowly returning and the economy is looking better than it did in 2008, it is important for restaurants to understand how this “growth through insight” principle works – particularly when it comes to ensuring that they will have repeat clientele. According to market research, 2011 saw a significant increase in the number of people who dined out at least once a week – from 49% in 2010 to 70% in 2011, with restaurants that are casual and convenient showing the highest number of increased patronage.  

While the numbers are looking better for the restaurant industry in 2012 than they appeared in 2011, the struggle isn’t exactly easy for many restaurants.  That’s why increased communication with your clientele, and building solid relationships with them, is crucial in making sure your restaurant is a success this year – and for many years to come. 

Loyalty Programs for Effective Marketing

What is the key to effective marketing? Loyalty programs.  A loyalty program is a specially designed program which rewards your best customers for remaining your best customers. Loyalty programs provide your best customers with incentives to keep coming back, often in the form of free select menu items or discounts off the top of their bill the next time they come in for a bite. Loyalty programs are often the reason why your customers choose to visit your restaurant in any given night and not your competitions, and as such they are absolutely necessary if you’re going to run a successful establishment.

So, how can you run a loyalty program? At its most basic level a loyalty program might be nothing more than knowing who your regulars are and hooking them up with the above-mentioned incentives whenever they stop by your venue. Yet this form of loyalty program is only mildly effective. There is no consistency to it. There’s no way to ensure it provides your returning customers with benefits if you aren’t there. And it’s completely unpredictable from your customer’s perspective. If a customer doesn’t know exactly what sort of incentive they will receive for visiting your restaurant then they are less likely to “roll the dice” and drop at a maximal rate.

Instead of applying the above loyalty program, you need to employ a systematized loyalty program, one which provides predictable and reliable benefits. For example, sending your customers a 20% off coupon on their birthday every year creates an incentive pattern they can predict with full assurance.

Reliability and predictability, with the occasional unexpected reward, are the keys to running a successful loyalty program.