In today’s competitive restaurant environment, it’s more important than ever to use data, analytics and insights to drive your business.
If you want to succeed beyond just staying afloat, you need to focus on growing your business. You need insights into what drives repeat customers and lapsed guests. You need data and analytics to measure the impact of your strategies on revenue and profitability. And you need insights into what your team is doing well so you can focus on the things that will drive growth in the future.
We will take a look at everything you need to know about driving your restaurant business with data, analytics and insights…
What is driving data in restaurants?
Driving data in a restaurant is a core process that happens every day to ensure the success of your operations. “Driving data” refers to collecting customer data, analyzing that data, and then creating insights to drive growth. While driving data may seem like an administrative process, it’s actually a critical part of running your business.
Analytics in restaurant business
Analytics are tools used to collect and analyze data to create insights. While driving data makes sure your restaurant is stocked with ingredients and ingredients are being prepared correctly, analytics are what help you understand what is happening in your business.
Analytics are used in restaurant operations to gain insight into sales performance and profitability to help you drive growth. With enough data about your customers, you can learn which menu items and service tactics are most effective at driving sales. Analytics are critical for growing any business.
Data helps you understand what is happening in your business. Insights are the knowledge you gained out of that data. For example, if you see that your sushi customers seem to be coming in more frequently, but they also tend to stay longer and spend more money while they are there, you can use analytics to see what is happening in those sales transactions to find the cause.
Insights from data
When you understand what drives your customers, you can focus on creating a great experience. You can also use this information to inform your marketing strategies, to improve your operations and to create new strategies. The more you know about your customers, the better your business will be. A primary goal of data and analytics is to understand your customers and what drives their behavior. You can use this information to inform marketing strategies, to improve your operations and to create new strategies.
How does a restaurant drive growth?
To drive growth, you need to understand the needs of your current and potential customers, and what drives them to choose your restaurant over other options. You can do this by using data, analytics and insights. Data allows you to understand what drives customer behavior and what makes customers choose your restaurant over another. Data can also help you identify areas of improvement or growth.
Business Growth Stages for Restaurants
There are seven growth stages every business goes through when trying to expand and increase revenue.
Those stages are:
- Stage 1: Awareness: This is the stage where your business is becoming known. At this stage, you might have just launched your business, or you might be in the middle of a growth spurt.
- Stage 2: Consideration: At this stage, you should be getting orders, but they are not necessarily coming from new customers. Rather, they are repeat customers who are expanding their horizons by trying something new.
- Stage 3: Conviction: This is the stage where customers should be coming in new with every visit. This is where your customers start looking at your restaurant as an option for their next dining experience.
- Stage 4: Commitment: Now, your customers are coming in regularly and are making commitments to your business. This includes committing to buying specific products, like buying tickets for a certain number of visits.
- Stage 5: Continuity: Customers have become loyal to your business and will come in regularly to support you and bring their friends with them each time.
- Stage 6: Normality: Your business has become normal and a part of the community. You have become known for providing great service, great food and great value.
- Stage 7: Growth: Now you are looking to grow your business, which means looking to expand sales and increase revenue.
Driving data in a restaurant is a core process that happens every day to ensure the success of your operations. Analytics are tools used to collect and analyze data to create insights. While driving data may seem like an administrative process, it’s actually a critical part of running your business. For the best results, you will want to focus on driving your data into insights and analytics. With data and insights, you can better understand what drives your customers, what areas of your business need improvement, and what strategies will help you achieve success.
EZ-Chow has solutions such as an Online Ordering, Self-Ordering Kiosks and Rewards/Loyalty Solutions that integrate into your existing POS systems. To learn how EZ-Chow can help you with these initiatives and more, get started by contacting us here.