This is the 5th step in 5 steps to getting success in a changing restaurant industry.
Forecasting is a powerful way in restaurant business planning to make better and informed business decisions. Restaurant forecasting is an expectation derived from analyzing historical sales or guest-count data and drawing a conclusion about the future to save on food and labor costs using advanced mathematical algorithms.
In the introduction of this series, we discussed all the 5 steps in brief. It’s now time to actually start digging deep into each of these steps.
As a restaurant owner, you should do homework and attract the right customers and see if you are targeting the right demographics. Customers are one of the most important elements to take into consideration to run a successful restaurant. The success of a restaurant is determined by the revenue it brings, revenue depends on the business and restaurant business depends on the number of customers you have.
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.
This is the 2nd step in 5 steps to getting success in a changing restaurant industry.
How can you tell if a market is completely saturated or if there’s still room for you to grow there?
You, as a restaurant owner, should have a deeper knowledge of the present restaurant market scenario to discover the feasibility of expanding or continuing a restaurant in a preferred region. This depends on various factors:
This is the 4th step in 5 steps to getting success in a changing restaurant industry.
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.
Consumers are not willing to travel longer distances and you have to understand where your customers are located in your trade area. Trade area for your restaurant is a combination of the total number of people matching your customer profile, their behaviors, and their spending potential.
This is the 3rd step in 5 steps to getting success in a changing restaurant industry.
Enter new markets carefully and prioritize expansion efforts based on factors that are relevant to the success of your restaurant brand, such as the level of competitive pressure.
After identifying most potential markets based on where the greatest number of potential customers live, start prioritizing which metro areas to focus on first.