The restaurant industry is an important part of the global economy. It’s estimated that, as of 2019, retail sales of food service and drinking establishments (“foodservice”) grew to $861 billion in the United States alone and the market is expected to continue to grow year on year. This growth has been facilitated by the proliferation of new technology, giving rise to private restaurant relationships, delivery solutions, and innovative marketing tools.
However, given the competitive nature of the foodservice market, it’s essential to have the right data and analytics tools in place. Too often, traditional methods of market research fall short of providing insights into the needs of the market, as well as the competition. This is where restaurant competitive intelligence tools come in.
These types of tools provide restaurant, hospitality, and food service providers with data-driven insights into competitor performance, pricing, and customer preference, enabling them to make informed decisions that ultimately allow them to differentiate from their rivals, remain competitive, and keep ahead of the curve.
In this article, we will discuss the role, value, and use cases of restaurant competitive intelligence tools, and understand how companies can use these tools to boost marketplace efficiency and gain a competitive advantage.
What Is A Restaurant Competitive Intelligence Tool?
A restaurant competitive intelligence tool is a technology solution that provides data-driven insights into customer preferences, competitor performance, and pricing. It allows food service providers to have an in-depth understanding of the marketplace and the ability to identify and respond to changes in the market with precision.
These tools are essential for businesses of all sizes. To remain competitive, companies need accurate data and deep market insights. Without it, the risk of being blindsided by emerging trends and new technologies is very real. By utilising the insights provided by a restaurant competitive intelligence tool, businesses can take proactive steps to protect their interests and increase their chances of staying ahead of the competition.
What Are Some s Of Restaurant Competitive Intelligence Tools?
There are several different types of restaurant competitive intelligence tools on the market, ranging from basic solutions focused on competitor insights to more sophisticated solutions that provide comprehensive market analysis.
Some of the most common examples include:
• Menu Analytics: Menu analytics tools provide insights into menu trends and customer preferences, empowering foodservice providers to design new menu items and tailor existing ones to the tastes and needs of their customers.
• Market Analysis Software: Market analysis software offers restaurants the ability to analyze competitive pricing, products, and services to help them gain a better understanding of their competitive landscape.
• Customer Insights Platforms: Customer insights platforms enable food service providers to better understand their customers by providing comprehensive customer data and analytics in one, easy-to-use interface.
• Sales Forecasting Software: Sales forecasting software helps foodservice providers make accurate sales projections to better manage their inventory and allocate resources.
• Social Media Insights: Social media insights tools help food service providers track and analyze customer sentiment and engagement on social media to understand customer needs, preferences, and opinions.
What Are The Benefits Of Restaurant Competitive Intelligence Tools?
The benefits of implementing a restaurant competitive intelligence tool are vast and varied. The three primary benefits are:
1. Increase Market Efficiency: Restaurant competitive intelligence tools help food service providers make better, data-driven decisions. By utilizing market insights, food service providers can better understand market trends, customer preferences, and competitor performance, leading to greater market efficiency.
2. Save Time and Money: Utilizing a restaurant competitive intelligence tool can help food service providers save time and money. By analyzing data from multiple sources, these tools can help companies map out the competitive landscape, quickly identify areas of opportunity, and develop targeted strategies to maximize returns.
3. Stay Competitive: Having access to up-to-date industry and customer data allows food service providers to stay ahead of the competition and remain competitive. Through restaurant competitive intelligence tools, businesses can quickly identify areas of opportunity and develop creative strategies to gain a competitive advantage.
The main takeaway
It’s clear that restaurant competitive intelligence tools are essential for businesses of all sizes. By utilizing these tools, food service providers can gain a deeper understanding of the market, customer preferences, and competitor performance, allowing them to make informed decisions and stay competitive.