The restaurant industry is witnessing fierce competition in India . According to the National Restaurant Association of India (NRAI), the industry was worth a whopping Rs.43,000 crores in 2010 and has been registering a healthy 15-20 percent growth annually.
Now the billion dollar question is how you can fight competition and turn profitable? Here are 7 effective methods for restaurants to beat competition.
Come up with a USP
Stand out from the rest of the competitors by offering a unique selling proposition (USP). Just imagine that your restaurant is launching a rare cuisine or a signature dish that is not served by any other restaurant in the city. An example can be a Russian cuisine or a chef who has been roped in from Japan. Highlight that unique feature in your promotions and marketing campaigns. Constantly come up with unique dishes or concepts so that your restaurant earns a distinct place in the minds of food lovers.
Research on your competition
To stay in the business, you need to know how your competitors are faring in the market. Visit other restaurants in your city, taste their dishes and experience the ambience they are offering. Evaluate their quality of service, behaviour of employees and other parameters and compare against yours. Raise your standards and implement the best practices followed by leading players. Also, follow their social media profiles and learn from the marketing strategies.
Reap the benefits of technology
Go for a robust restaurant management software that help you increase efficiency significantly. With digital, cloud based platforms such as inresto POS you can manage several areas such as reservations, inventory management, loyalty programs and a lot more. Come up with your restaurant’s own website and mobile app so that customers can order food online.
Right pricing of your menu
The menu pricing can make or break your restaurant. Hence you need to fix the prices carefully. Research on the prices charged by your competitors for the same dishes offered at your restaurant. Though you can use the competitor’s pricing as a reference, it’s not necessary to use that as the deciding factor. Slashing prices to beat competition may affect your profits badly in the long run. Platforms such as inresto POS provide valuable insights on the fast-moving and slow-moving items in your menu. If your customers are willing to pay more, increase the prices of the fast-moving items.
Deliver proper training to your staff
Employees are the eyes and ears of any restaurant. Train all your staff properly to behave politely with the customers. Also conduct frequent training sessions to keep them abreast of the best industry practices. Ensure that your staff is well-versed on the various dishes in the menu. If a customer asks a doubt about any dishes, they should be able to explain the details. A smart waiter can upsell dishes and boost your profits.
Market your restaurant
The restaurant management system helps you market your restaurant through SMS or E-mail marketing. Launch targeted campaigns based on a variety of criteria such as age, region, etc. There is also the option to automate these campaigns. Monitor the effectiveness of these campaigns periodically and make tweaks wherever necessary. Nowadays social media plays a crucial role in deciding the fate of restaurants. Build a business profile on Instagram, Facebook and YouTube. Upload high quality photos and videos of dishes and respond to comments promptly.
Keep a tab on the food quality
In these times of COVID-19 customers place increasing importance on food quality and hygiene. Inferior food quality can tarnish your brand reputation in the market beyond repair. The food should be appealing, delicious and exceed the expectation of diners. Maintain consistency in food taste so that there is no scope for complaints.
Parting words
Restaurants are struggling to turn profitable and they operate on wafer thin margins. The pandemic has made the situation even worse, adding to the woes of restaurateurs. Thus, the need of the hour is to bring your restaurant back to profits. The 7 points discussed above will help you significantly in overcoming competition and turning profitable.
