When it comes to efficiently operating a restaurant, there’s no substitute for the insight and knowledge gained from a well-rounded analytics tool. In the face of heightened competition, rising costs, and changing customer tastes, restaurants need to make sure their decisions are backed by reliable, real-time data.
A restaurant analytics tool gives you the power to identify key problems and tackle them proactively, providing a competitive edge. But, how do you pick the right restaurant analytics tool for your business? Here are 10 things to consider:
1. Adequate Data Sources
The foundation of any good analytics tool is reliable data, so make sure any tool you choose has the data you need to get the insights critical to your business. Look for top-notch data sources that could include POS systems, customer surveys, loyalty programs, and more. Make sure the tools offer broader coverage of the food service market, such as with menu data and restaurant tech coverage.
2. Dashboard Functionality
The dashboard is usually the starting point of any restaurant analytics process. It should vary depending on the data you have available. Make sure you choose tools that provide easy-to-read and customizable dashboards. This will allow you to toggle between different types of data and get the complete picture of the performance of your business.
3. Automated Reporting
Analytics tools should make it easy to generate reports for a variety of activities. Your chosen tool should be able to automatically generate customized reports in real-time using your data sources. Reports should include customer segmentation, sales performance, and menu changes, to name just a few.
4. Advanced Analytics Capabilities
Advanced analytics capabilities are key for data-driven restaurants. Make sure the restaurant analytics tool you select offers sophisticated features like easy-to-use forecasting and seasonal trend tracking. This will help you accurately plan for future sales and promotions. Also look for tools that provide predictive analytics, enabling you to identify customer behavior patterns and gain deeper insights into their behavior.
5. Menu Analysis
The success of any restaurant relies heavily on the items on the menu. Analyze pricing, sales, and popularity of menu items to make smarter decisions when it comes to adding, removing, or changing them. Find tools that allow you to analyze items by category, track ingredient costs, and determine customer preferences.
6. Comparative Reporting
To really assess your performance, look for tools that can provide comparative reporting. To stay competitive, restaurants must understand customer trends and use the data to refine their strategic plans. Restaurants should be able to compare both past and current data to the broader marketplace. This will be key to making informed decisions.
7. Benchmarking Capabilities
Benchmarking is a common practice and a great way to evaluate your restaurant’s performance against others. Look for restaurant analytics tools that provide peer comparison functionality. This will allow you to see how you stack up against the competition and, ultimately, help you make decisions to stay above the competition.
8. Data Security
Data security is of paramount importance. Make sure you choose a restaurant analytics tool that has high levels of data security measures to protect sensitive customer data. Also look for tools that offer strong encryption methods.
9. Pricing Model
Your choice of restaurant analytics tools should depend on your budget. Most cloud-based tools have a Subscription-as-a-Service (SaaS) model. Take the time to understand the terms, conditions, and pricing model before signing up.
10. Support
The restaurant analytics team you choose must have strong customer support. The team should be able to quickly answer your questions and help you resolve any issues you have.
Choosing a restaurant analytics tool can be daunting, but with the right insight and knowledge to make informed decisions, you can easily find the right tool for your restaurant. By following the 10 points above and with the help of a reliable restaurant analytics team, you can make the right choice and drive meaningful results for your restaurant.
