From Legendary Vendor Kraft Heinz Away From Home
One in five restaurant operators say that competition is one of their biggest challenges¹. Why? Because in 2021, there were at least 660,936 restaurants in the United States².
That’s why it’s important to understand and outshine your competitors from the get-go.
So, whether you’re newly setting up shop or looking to stay on top, Kraft Heinz Away From Home's operators and chefs have some restaurant competitive research tips for you.
WHO ARE YOUR COMPETITORS?
The best way to find your competition is with a restaurant competitive analysis: a method of competitive research that looks at your potential competition from different angles so you can understand the marketplace and find your place in it.
To zero in on your competitors, you’ll want to analyze both direct and indirect competitors along with their menu items, marketing tactics, business practices, pricing and branding.
COMPETITIVE ANALYSIS
If you are looking to open up a new physical location, undertaking these seven steps can give you the information you need.
STEP 1: LIST
Compile a list of competitors by neighborhood and identify them as “direct” or “indirect.”
Direct competitors: These are other restaurants whose offerings are the same as yours and who happen to be going after the same pool of customers. For example, if you sell sushi, your other direct competition would be a neighboring sushi shop.
Indirect competitors: Any other restaurants who, while not offering what you offer, might attract the same customer base. Using the same sushi shop as an example, an indirect competitor could be a burger joint down the street that pulls in the portion of your customers who like sushi and burgers.
STEP 2: ANALYSIS
Next, assess what your competition offers, what’s hindering them, what they can do better and their vulnerabilities. In doing so, you can get a realistic and complete view of your competition.
STEP 3: OPERATIONS RESEARCH
Look into your competitions' operations with these types of questions: What’s their concept type? What sets them apart? Are they a franchise, group or independent operation? When were they founded? What are their hours of operation? What is their number of seats? Do they offer delivery, pick-up or use an app?
STEP 4: MENU RESEARCH
Investigate their menus, determining their best sellers, differentiators, specials and pricing strategies. How much variety do they have in regard to dishes or ingredients used? Is there anything unique or that stands out about their offerings? Are their portion sizes big or small? Compare your answers with your own menu.
STEP 5: MARKETING RESEARCH
What kind of marketing do they do? Do they have a strong online presence, detailed website, active social media accounts or lots of online reviews? Do they offer promos like ongoing deals, special events, coupons or freebies? Start following them on social media and monitor their advertising and marketing strategies if you do not already.
STEP 6: VISITS
Visit the establishments to get first-hand experience of their ambiance, service and overall customer experience. Take note of their operations, staff interactions, wait times, cleanliness and any other stand-out features. Then dig into their customer reviews to see what they’re doing well and how customers think they’re missing the mark.
STEP 7: STRATEGIZE
Follow these keys to make sure you are employing the types of strategies you need to succeed:
- Plan your menus to help give yourself an edge over your competitors.
- Your staff are the face and body of your business. Keep them both happy and learning with regular staff training.
- Make sure your restaurant is equipped with as many of the following as possible to be as tech-friendly and cutting edge as possible: WIFI, a mobile-friendly website, online ordering partner apps and mobile payment options.
- Make sure you are staying competitive with your marketing efforts with social media, Google Business Profile and a consistent restaurant brand to keep your restaurant operating at its peak.
For full article from Kraft Heinz Away From Home, click here.
