Gauging Your Restaurant's Competition

Succeeding in the restaurant industry means staying afloat in extremely competitive waters.  Knowing who your competitors are and why they are your competitors is key information for any restaurant entrepreneur who seeks to grow his or her business.  

The first step in identifying your competitors is to take a note of all of the restaurants or food services providers in a 20 mile radius of yours.  This list contains your most obvious competitors, especially those that serve the same type of food or offer a similar ambiance.  

After dividing your list of competitors into direct competitors (those restaurants similar to yours) and indirect competitors (those restaurants in the 20-mile radius that differ from yours), take the time to watch your direct competitors closely to see what they are doing.  How do they market new menu items, where are they marketing, and what forms of marketing are they using?  

You should also keep an eye on your indirect competitors and see what they are selling, and how closely their menu comes to yours on certain types of foods.  Include grocery stores in this observation, especially since many of them are now offering food service at deli counters, including sushi, gourmet sandwiches, and specialty pizzas or pastas.  

Next, you need to get online and read what others are saying about these businesses. You should be able to find online reviews in a variety of places, including travel sites and forums, and learn valuable information about what both locals and tourists expect when they come to your area in search of a place to dine.  

Finally, look at the points your restaurant has to offer compared to what your competition has to offer.  Ask yourself important questions such as ‘how do our concepts differ?’ and ‘how does our pricing differ?’  Consider factors such as location, parking, accessibility, visibility from the main thoroughfares, etc.  

The Importance of Satisfying First Time Customers

First-time customers have a lot of potential for any restaurant that is focused on effective marketing.  To begin with, first-time customers don’t know what to expect, so it is easy to impress them with small details related to customer service or food/service quality that other restaurants don’t provide.  Additionally, first-time customers will immediately compare your restaurant or services with other restaurants that are similar, so it is a good opportunity to surprise them with something that they might not receive from more established or chain restaurants.  

The appeal of the “new” is a strong human emotion.  In fact, when we experience something new that we haven’t experienced before, the simple “newness” of it is exciting within itself.  People enjoy breaking out of their routine or mold, even if just for a meal, and the enjoyment of that experience can be multiplied easily with a few simple things that set the experience apart from others.  

First-time customers are also more likely to share their experience with others.  Take, for example, the couple who decides to go somewhere new to celebrate their anniversary.  They will likely share their dinner date plans on Facebook or Twitter, including information announcing their anniversary.  They are also more likely to “check in” somewhere on FourSquare, or some other GPS enabled application.  This means that their post and “check in” will be announced to all of their friends on these social media applications, which becomes very effective (and very free) marketing for your restaurant.  

The expression “first impressions are the most important” holds true, especially when it comes to growing a customer base.  The first impression that someone has of your restaurant will be the main impression they take with them when they leave, and will color their opinion of your food and services despite how this impression might change over time.  If someone has a good first time meal experience at your establishment, they will always remember it, and will be more likely to return in the future—especially if their first time was to celebrate an important occasion in their lives. 

Restaurant Marketing 101

Marketing your restaurant isn’t an easy process—anyone who has opened a new restaurant and attempted to market it knows this.  However, creating a marketing plan doesn’t have to be as complicated as many people make it.  Knowing which facts to consider is half the battle, and once you determine the right questions to ask, marketing becomes a much easier task to take on.  

Here are the first questions to ask when creating your restaurant marketing plan:

1.       Who are my target customers?

2.       Who is my competitor? 

3.        What is the status of the restaurant industry in my area? (How are other restaurants doing?)

The reason why the target customer question is the first to consider is because this question will be the most important one to ask – and the one that will require the most focus.  If you want to have competitive advantage in the restaurant industry, regardless of who you are competing against or the area in which your restaurant is located, you will have to always put the customer first.  Regardless of how great you think your service is, it’s what your customers think of it that matters most.  

People are attracted to restaurants that are clean, consistent, positive, and personal.  This means that in addition to providing a clean and attractive environment for your guests to eat, you will need to make sure that this is provided consistently.  In addition to this, every piece of marketing that you send out – every statement you make, whether in person or in print – should be positive and personal.  The more personal you can make your marketing (for example, acknowledging birthdays and names), the more effective it will be.  

Finally, don’t make the mistake of only focusing on marketing when things are not busy.  You should be focusing on marketing every day—even when your restaurant is overflowing with guests and all the tables are full.  Your best and most effective marketing strategies will happen when customers are present, and this is when you should be building loyalty and relationships with them.  Their word-of-mouth referrals to friends, co-workers, and family members will do more to keep your tables full than all of your marketing efforts combined. 

The EPA Offers Food Service Providers Information on Sustainability Practices

According to the Environmental Protection Agency’s (EPA) pamphlet, “Putting surplus food to good use: A How-to guide for food service providers,” food waste losses account for up to $100 billion per year; $30-40 billion occurring within the commercial or retail sector (e.g., restaurants, convenience stores) and $20 billion from farming and food processing.

In efforts to encourage food service providers to promote and maintain sustainable practices within their business model, the pamphlet provides useful information concerning practical steps restaurants can take to become more sustainable, and therefore, more environmentally aware.  Some suggested steps include: 

1. Assess your food waste: Take a quick look at the food you are throwing away and identify potential food recovery opportunities to decrease the amount you generate.

2. Conduct a food waste audit: For more detailed information, track and collect data on the types and amounts of each food waste item you are generating. Collecting these data will help you determine if some of your food waste can be reduced by ordering or producing less, how much could be sent to food banks or shelters, and how much could be recycled through animal feeding, rendering, or composting.

3. Plan for costs: There are costs related to collecting, transporting, and composting food scraps. Talk to neighboring organizations also about instituting food waste collection at their facilities to create a cost-effective route for your hauler. You also might be able to generate revenue by selling compost created from your food waste.

4. Start the program: Talk to national waste organizations, haulers, town planners, recycling coordinators, and even the mayor or town manager to get support and assistance for your food recovery program. Employee training is also vital to the success of a food waste recovery program. You might want to consider an incentive program for employee participation. 

5. Decide what food recovery option works best for you: Use the information gathered from your waste assessment and audit to decide which food recovery option is best for your organization. The quality of your surplus food and your estimated generation rate will help you consider how to divert your food waste. To learn about waste disposal options and find haulers in your area, visit your state or county environmental department’s Web site. You can also ask your current recycling or waste hauler about hauling your food waste to a recovery facility.

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All information taken from the epa.gov website.

What are anticipated food services industry trends for 2012?