How Data-Driven Decision Making Drives Growth in Food and Beverage Industry
With endless choices and rapidly shifting consumer tastes, food, and beverage supply chain decision-making can be a culinary conundrum.
Do we launch a new ingredient or product line tailored to restaurant trends? Should we invest in more efficient restaurant distribution methods? What flavor trends are restaurants keen on this season?
The solution? Make it data-driven.
Let’s talk about data driven business decisions. The culinary and beverage industries have embraced this savory concept as their secret sauce to success.
What is data driven decision making & why is it important for the food and beverage industry?
DDDM involves using data, metrics, and data driven insights to make strategic decisions that align with your business’ goals. Imagine being a food supplier and using real-time restaurant feedback to introduce a new ingredient, or a beverage manufacturer analyzing sales data to develop new drinks tailored for cafes and restaurants.
As supplier, you can then cater to actual demand instead of just guessing.
You also need to think about changing dietary needs. With 64% of the world’s population excluding foods from their diet, suppliers need to tailor their products so restaurants have more relevant food choices for their customers.
Here are the benefits of data driven decision making in the food supply industry:
- Serve What’s Sizzling: 49% of marketing professionals use data-driven strategies. For the food industry, this means understanding taste preferences, dietary needs, and even the right time to introduce a new product.
- Minimize Wasted Ingredients: Wrong data informed decision making means wasted resources. With data driven approach, suppliers can save costs, produce what’s in demand, and maximize ROI. For example, a food manufacturer can use a market intelligence tool (artificial intelligence) to predict ingredient demand based on restaurant trends, local events, and consumer preferences.
- Set the Table for Proactive Decisions: No more reacting to market changes. Predict trends, and be ready for the next big thing – be it a keto-friendly meal or a strawberry summer drink.
- Stirring Up Team Unity: When everyone, from the production manager to the marketer, is informed and aligned with data, it streamlines goals, fostering collaboration and trust.
- Personalized Plating: Understanding restaurant preferences helps tailor offerings, creating customer loyalty. If 90% of consumers lean towards organic produce, it’s time to rethink your ingredients! For instance, a restaurant might offer a vegan, vegetarian, and meat-based version of the same dish, allowing customers to choose what suits them best.
- Decision-making Confidence: No more second-guessing if a new dish will resonate or if an old favorite should be retired. Verified data provides the clarity needed to confidently make impactful decisions, from crafting new menus to launching marketing campaigns.
- Boost ROI: Instead of investing blindly, suppliers can leverage data to ensure their products align with actual restaurant needs. A food manufacturer can use data to identify which ingredients or products will be in demand.
- Proactive Approaches: Instead of reacting to trends, you can be ahead of the curve, anticipating market shifts and restaurant needs, ensuring they are always one step ahead of the competition.
How Data-Driven Decision Making Drives Growth in the Food and Beverage Industry?
Imagine being a supplier, standing with a warehouse full of ingredients but not knowing which will be in demand next season. DDDM is the answer.
- Matching Consumer Palates: DDDM helps identify what flavors are trending. Remember avocado toast’s sudden popularity? Data showed a spike in avocado sales, and restaurants capitalized on this by featuring it prominently on their menus.
- Efficient Inventory Management: Instead of overstocking perishables, manufacturers can use data to know what to stock more of and what to use sparingly. Think of a juice bar that noted a decrease in orange juice sales but an uptick in kale-based drinks. They adjusted their inventory accordingly, reducing waste.
- Tailored Promotions: Based on restaurant buying patterns, you can offer promotions on items that resonate with the client. For example, a café might notice a rise in hot chocolate sales during winter and offer discounts to lure more customers.
Through data, the food and beverage industry can ensure they’re always serving what’s in demand, minimizing waste, and maximizing profits. Data is the main ingredient in this recipe for success!
The food and beverage industries are dynamic and ever-changing. Trends come and go like the seasons. You can predict what ingredients or products restaurants want next or identify market surpluses or shortages. That’s the power of DDDM, helping businesses make informed decisions.
What if there was an ultimate market research tool for food industry insights?
There comes Brizo Foodmetrics. Brizo is a powerful tool that gives you access to real-time accurate data from over 1.3 million establishments in North America.
As a supplier, you can gauge demand for specific products or ingredients across different restaurants or chains with Brizo. Whether you’re supplying grains or gourmet sauces, Brizo equips you with everything you need. You’ll also get an inside look at the technologies restaurants use, like reservations or loyalty programs.
Stay ahead of the curve by using data to make decisions. Bring your food and beverage business to the next level with Brizo Foodmetrics.