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.
Restaurant business expansion has to be done with careful restaurant expansion strategy and execution to replicate the success of your restaurant chain. Maintain quality and professionalism in all restaurant chain which will add more customer base to your restaurant.
With the help of customer analytics, you can select new markets and sites where other restaurants are having great success or it can also be used to optimize your existing locations. You have to consider your existing customers and your prospective customers to learn about demographic preferences, restaurant trends in the new market, and menu items they prefer. Find popular restaurants in that market area and see what the customers are talking about and observe demographics at those popular restaurants.
Restaurateurs may use GIS (Geographic Information System) mapping technology while selecting the site in a market. With GIS technology you can:
- find the locations of restaurant competitors
- find the locations of current customers
- find the density of potential customers
- find and other factors to determine the viability of a market site
Reports generated from site analytics can streamline data visualization and business decision making.
You should use multiple data points to find new customers while prioritizing markets. Work with delivery partners and credit card processing partners to find from which markets are the maximum number of orders and people are coming from. Set up Google Analytics to find which markets are bringing in more traffic to your site and prioritize the markets for restaurant business expansion.
[bctt tweet=”Set up Google Analytics to find which markets are bringing in more traffic to your site and prioritize the markets for restaurant business expansion.” username=”@UInsights”]
The restaurant business expansion and success are linked to restaurant strategy, uniqueness in brand and food philosophy – the highest quality of ingredients. Promotion of your brand while entering into new markets should be your USP – Unique Selling Point. Understand the market to identify your restaurant competitors and identify technology trends. Offering delivery services straight to the customers or offices will be an added advantage.
Sustainability and scalability are important things to consider, you would no more be able to physically monitor the operations of your restaurant chain. Central management should be implemented for the chain restaurant so as to grow profitably. POS – Point of Sale is a system with a combination of hardware and software built to centralize business operation.
This includes managing the transaction, credit card processing, and the post-transaction operations. With POS, we can have customer data, inventory, and sales reporting can be managed at a central point. The efficiency of operations is improved by connecting every part of the business to point of sale systems. POS systems should be used to monitor all the operations so that each restaurant functions without you.
Financial planning should be done carefully, either by raising capital on your own or taking loans. Risk of losing money is reduced if restaurateurs come together and form partnerships to make the investment affordable.
To conclude, you should perform market entry analysis to get valuable insights to determine market share opportunity in proposed new and emerging markets. Strategies for expansion of your restaurant business should be based on the understanding of the market that can support franchise territories. Then, you can decide the best locations for expansion in each market.