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The food service industry is in the midst of rapid change, driven by innovative restaurant technology, consumer appetites, and shifting regional preferences. Growing Restaurant Chains need to be attentive and take advantage of these advances in order to capitalize on the immense potential of the food service market. With a sprawling network of restaurants, vendors, suppliers, and customers, the challenge of maintaining dynamic network operations can be daunting.
But a strategic approach informed by data-driven insights can help restaurant chains of any size thrive in the ever-evolving foodservice industry. Here are the top ten considerations restaurant operators and technology providers should keep in mind when expanding their reach across the foodservice landscape.
1. Understand the Market and Identify Opportunities
Restaurant chains need to be familiar with the foodservice marketplace, including understanding of customer preferences, local industry standards, regional trends, and more. Being well-versed in the current market conditions is essential in order to make informed decisions about expanding operations into new markets and to stay ahead of the competition.
Operators should review market trends and research their region in order to identify areas of opportunity. Often, restaurant operators will use Foodservice Market Insights to help inform decisions. These insights include in-depth menu data, sales prospecting, and digital marketing solutions tailored specifically for the foodservice industry.
2. Validate Business Model and Systemization
When exploring new markets, it’s essential for restaurant operators to ensure that their business model and systemization is well-suited for growth. Once the restaurant chain has identified potential growth opportunities, it’s then important to validate the business model and to find ways to increase efficiency and productivity.
Place order management, menu development, and franchise operations all must be streamlined and integrated in order for the restaurant’s operations to scale. With data-driven insights, restaurant operators can access market-specific information which can inform decision-making and ensure a reliable, efficient system.
3. Optimize for Physical and Performance-Based Expansion
When selecting new markets for expansion, restaurant operators must consider both the physical constraints and the performance implications for each location.
Physical constraints include the amount of space the restaurant will require, local building codes, access to parking, and other facilities. Performance-based considerations are revenues, traffic, and customer satisfaction. With the help of food service market insights, restaurants can review data and compare potential locations to ensure that the best decision is being made.
4. Analyze Food Trends and Misleading Data
Analyzing regional food trends is an important part of the process when growing a restaurant chain. Restaurants should be well versed in food trends and the current offerings from their competition in order to remain competitive and up-to-date.
It’s also important to be mindful of misleading data and to pay attention to authenticity. Data can sometimes be misleading, and inaccurate insights can lead to serious issues. Restaurant operators should ensure they are considering accurate information when making key decisions.
5. Monitor the Digital Advertising Landscape
In today’s digital age, an effective advertising strategy is essential for growing restaurant chains. Restaurant operators should stay up to date on the changing digital advertising landscape and understand the different options available for targeting customers.
Using insights and analytics such as consumer behavior and menu item performance, restaurant operators can use digital advertising campaigns to draw in new customers and build brand loyalty.
6. Leverage Social Media and Messaging Platforms
Social media and mobile messaging applications provide ample opportunities for restaurant operators to promote their products and services. With powerful tools like online reviews, word-of-mouth, and digital ads, restaurants can reach potential customers on a broader scale.
Engaging customers on social media and messaging applications also provides powerful customer insights. Restaurants can use these insights to inform menu design, promotional offers, and more.
7. Establish Efficient Supply Chain Solutions
As restaurant chains expand, establishing efficient supply chain solutions is paramount to long-term success. Restaurants should evaluate their current supply chains and assess their ability to handle growth. Using insights and analytics can help provide detailed visibility into current and potential supply chains.
Food safety is also a top priority for restaurant operators, and test kitchens provide valuable feedback when important decisions are being made. Having access to the latest industry standards is essential for ensuring an efficient and safe supply chain.
8. Invest in Franchise Opportunities
Taking advantage of franchise opportunities is an attractive option for restaurant chains seeking to expand operations. Franchises provide an attractive return on investment and a steady stream of revenue when two-way gain sharing agreements are in place.
Franchising also enables restaurant operators to enter new markets and territories without incurring the full costs of setting up a brick-and-mortar restaurant.
9. Analyze Data and Identify Potential Placements
Data analysis is critical for identifying potential placements for restaurant chains. With data-driven insights and analytics such as location analysis, restaurant operators can evaluate the market potential and identify profitable locations.
By leveraging data-driven insights, restaurant operators can also gain a competitive edge and act quickly when addressing shifts in the foodservice landscape.
10. Grow Incrementally and Responsibly
Restaurant operators often want to grow quickly, but it is critical to ensure that growth is sustainable and that it takes into account the long-term viability of the business.
In order to ensure that growth remains responsible, restaurant operators should look to grow incrementally. This can involve testing menu items, expanding to smaller geographies, and taking advantage of franchise opportunities.
