The Food and Beverage industry is highly competitive. As a restaurant, there is always a risk to your viability, especially if there is competition available which also offers the same food and service. The location, quality of food, service and pricing are some of the factors which affect the restaurant in terms of the number of footfalls it gets the revenue it makes and the economics of scale it generates. There are other things as well that can directly or indirectly impact the restaurant business and can change the game. The rise in food prices affect everyone on the F&B industry, whether the producer and supplier or the restaurant owners and obviously the customer. However, many things affect the food prices, including the environmental nature.
Gaining a competitive edge needs a detailed analysis of the demographics of the nature of the competitors and the surrounding area and optimise the factors accordingly that will make the business flourish. You can achieve this by installing a complete and updated restaurant management solution which will provide enough data to strategize and analyse and take the important decisions. It is also important to have an app/website or social media presence. It also influences the customers’ perception of the brand.
Even if you are successful, the new competitors can enter the market and steal your clients at any time. So you need to also be aware of this. If your restaurant business is running successfully, it has the potential of being cashed in and imitated by the competitors. So this feature should be considered as a constant thing of the Restaurant industry. Your business should always keep on experiment and do innovative things to get the best outcomes.
Things you need to know to gain competitive advantage in the Restaurant Business:
- Select a highly visible location which has a suitable consumer base nearby.
- Identify the strengths and weaknesses of your competitors.
- Choose and focus on the weaknesses and strengths of the competitors. Deliver food and service that your competitors can’t match
- Find an area which has few competitors which also serve food same as yours.
- Analyse the local competition after choosing the location.
- Immediately analyse your new competitors to identify potential drains on your business.