With the current growth and rise of the restaurant industry in the United States, franchisors are increasingly turning to food research providers to understand the local market and make more informed decisions about their operations. Food research companies offer a range of data and insights to assist with menu development, sales prospecting, prospect targeting, market segmentation, and business planning. However, choosing the right provider can be a challenge with the growing number of companies in the market. This guide will provide an overview of the different types of food research companies and tips on how to evaluate them to ensure that you make the right decision.
Types of Food Research Providers
There are a variety of food research providers in the market with each offering different levels of services. Generally speaking, there are three main types of providers.
Menu Data Companies
Menu data companies offer data on menus, dishes, dishes prices, ingredients, allergens, and other pertinent information from restaurants. Menu data companies collect menus from a wide range of restaurants, often using a network of local scouts to manually enter the information and regularly update the database. This type of provider is often used by restaurants when developing menus and helps produce insights on emerging trends and competitive positioning.
Restaurant Technology Companies
Restaurant technology companies focus mainly on providing technology solutions to the restaurant industry. They offer a range of products including restaurant management systems, customer loyalty programs, cashless payment solutions, analytics tools, and more. These companies often sell their solutions directly to restaurant owners or partner with large restaurant chains. By leveraging the data generated by their solutions, these companies are also able to provide insights on the restaurant industry and the use of technology in the sector.
Foodservice Market Intelligence Companies
Foodservice market intelligence companies combine data from multiple sources with proprietary algorithms to provide detailed and actionable insights on the foodservice industry. These companies typically offer services such as sales prospecting, market segmentation, customer segmentation, competitive benchmarking, and market sizing. Foodservice market intelligence companies often cater to large restaurant chains and franchisors looking for detailed insights on the foodservice market.
Tips for Evaluating Food Research Companies
When evaluating a food research company, it is important to understand the types of insights they offer and the quality of the data. Here are a few tips to consider when evaluating a food research provider.
Understand the Quality of the Data
The quality of the data is essential when evaluating a food research company. Check the company’s website for information on their data sources and look for reviews and case studies to get an idea of the accuracy and reliability of the data. It is also important to understand how often the data is updated to ensure that it is up-to-date.
Look for Specialized Services & Tools
It is also important to consider the types of services and tools a company offers. Many providers offer standard menu and restaurant technology solutions, while others offer more specialized tools such as analytics and benchmarking tools. Look for companies that offer specialized services and tools that can provide insights into the foodservice market and help you with decision-making.
Consider the Cost
Cost is also an important factor to consider when evaluating a food research provider. Most companies offer a range of services that have different price points. It is important to consider the value of the services relative to the cost to ensure that you are getting the best value for money.
The essence
Choosing the right food research provider is essential for franchisors looking to understand the local market and make better decisions about their operations. It is important to consider the types of services and insights offered, the quality of the data, and the cost when evaluating a food research provider. With the right provider, franchisors can gain valuable insights into the foodservice industry and position their business for success.
