4 Applications of Data Analytics Changing the Restaurant Industry | Hacker Noon

Increasing competition in the restaurant business, along with different taste likings, is making it more difficult to stay afloat in the market. The restaurant industry has some specific challenges that are: Losing customers, Meal size and quality of meals are the ultimate business winner in the competition. The integration of POS and advanced analytics help businesses get to the best and single view of separate customers across different restaurant outlets. The use of mobile data, website data, etc., for the customer behavior analysis further adds to the benefits of the business.

image

Seethalakshmi Hacker Noon profile picture

@cognilyticseoSeethalakshmi

I am Seethalakshmi working as a Digital Marketing Analyst at Cognilytic.

Who doesn’t like great food at affordable pricing? Many of us celebrate our weekends with our friends and families in the top-grossing restaurants. But do you know that restaurants struggle high to manage the demands of the customers? The increasing competition in the restaurant business, along with different taste likings, is making it more difficult to stay afloat in the market.

Challenges in the restaurant industry:

No business can stay away from the challenges, but the restaurant industry has some specific challenges that are:

● Losing customers: One bad service and the restaurant get permanently banned from the wish list of the customers. Hence, it is important to decrease the number of customers who don’t want to come back.

Guest frequency: Like other businesses, loyal customers who frequently visit your restaurant are a boon to the business. Thus, it is crucial to maintain high guest frequency.

● Meal size: The portions and quality of meals are the ultimate business winner in the competition. Thus, restaurants must focus on increasing the meal size, menu, and availability of the items.

Advanced analytics in restaurants:

Any restaurant looking to design effective business strategies can’t overrule the advantages of advanced analytics tools. It makes the best sense out of all the customer data and helps them design insights that impact their value and business share in the market.

Applications of advanced analytics in the restaurant industry:

It is clear that advanced data analytics has a promising future in the customer-centric service sector like restaurants. However, it becomes easier to understand when we have practical examples from the restaurant industry only. Some of the best advantages of analytics to the restaurant and food business include:

Customer behavior analysis:

Knowing the likings and disliking of your customers can help restaurants make the best thing or product available to the demanding customers. The integration of POS and advanced analytics help businesses get to the best and single view of separate customers across different restaurant outlets. Thus, it gives a clear perspective into the best combo meal offers for different customers. The use of mobile data, website data, etc., for the customer behavior analysis further adds to the benefits of the business. The messaging and marketing campaigns can be designed according to the insights from the customer behavior analysis by advanced analytics.

Restaurant location analysis:

The location of the restaurant directly impacts the success and popularity of the business. The probability of opening a new restaurant at a hotspot is something that any business is looking for. The predictive restaurant analysis by advanced analytics offers the best hand to the businesses that are planning to open their restaurant at a location where the competitors are already present. The advanced analytics generate demand pockets and guide the enterprises to invest in the best locations for their upcoming restaurant. All the data is used to determine the best location and restaurant format according to the demand and the customer likings.

Feedback analysis:

Generating genuine feedback is one of the best advantages of using data analytics. It may seem easy for a single restaurant, but the chains may seem difficult to manage different feedback from different channels. Thus, feedbacks from different modes like mobile, website, inquiry forms, etc., can be collaborated to draw the best results from the advanced analytics only. This feedback from every single customer adds to the understanding of the customer sentiments, their association with your restaurant and highlights their genuine demands. Thus, restaurants can work on the offerings of these feedbacks and can provide the best services to the customers that exceed their expectations.

Identifying taste clusters:

Selling combs to the bald is as useless as offering bad services to the customers. Hence, it is crucial for the restaurants to crack the taste likings of their customers. Advanced analytics plays a great role in creating taste clusters. These taste clusters gave a clear insight about the best likings and disliking of the customers that vary from location to location and are different for different days in a week. Restaurants can integrate their ordering systems and billing systems to understand the taste of their customers by feeding the large data to advanced tools like Microsoft Power BI. Thus, advanced analytics is helping multiple restaurants get the best taste designed for their customers.

Tags

Join Hacker Noon