As franchisors look ahead to 2023, they no doubt are eager to dip their toes in the foodservice market, in hopes of expanding their operations and strategically finding new locations. In order to make smart and informed decisions about where to open new establishments, there are several food trends they need to keep in mind – but the ones they may overlook in their research are just as important.
With advances in data and insights from providers like Brizo, franchise owners can now access more comprehensive market insights to make decisions with confidence. However, while evaluating menu data, restaurant tech coverage, sales prospecting, and data enrichment, they may forget to pay attention to the nuances of the local market, the culture of the area, and the foodservice overlap in the area. In this article, we’ll share some tips on what franchise owners need to include in their research if they want to take full advantage of current trends when evaluating potential new sites.
Understanding Local Foodways
When it comes to selecting the right sites for expansion, local foodways need to be taken into consideration. Foodways are defined as “the entire range of activities, attitudes, and beliefs related to the production, consumption, distribution, and presentation of food.” Understanding the local foodways of an area can give you valuable insights into the area’s food culture.
Knowing which regional dishes, food preparation methods, and ingredients are in high demand can help you identify potential menu items, create specialties that are likely to be well-received, or even navigate a location’s unique dietary regulations. Additionally, researching the overall food trends in the area – around ethnic cuisines, vegetarian and vegan diets, delivery-friendly dishes, and so on – can be enormously helpful when creating a menu, as well as a plan for marketing materials.
Evaluate Restaurant Discovery Platforms
In recent years, restaurant discovery platforms such as Yelp, Zomato, OpenTable, and Google Maps have been disrupting how people discover and select restaurants. While a restaurant’s own website and other online marketing tactics may work to increase their digital presence, restaurant discovery platforms can be game-changers.
The main advantage of these platforms is that they give potential customers the flexibility to explore restaurants based on location, cuisine, pricing, and other criteria – as well as browse reviews from other customers. Franchise owners should take advantage of these platforms and make sure that their restaurants already have an online presence, or begin working on establishing one, if they don’t.
Researching Economic and Labor Market
Franchise owners should also do their due diligence to better understand the economic and labor market to help them make better strategic decisions. They should consider the wage and benefits costs in the target area, as well as any overtime rules that may be in place or the minimum wage with regards to tipped employees.
It’s also important to research the median household income of the area, as well as the local unemployment rate, in order to get an idea of the customer base. Franchise owners should also review industry specific regulations that could impact their operation, and make sure that they understand the tax structure of a potential location.
Concluding concepts
As franchisors look towards 2023 and strategically expanding their operations, understanding the local foodscape is essential. It’s important to pay attention to the nuances of the local market, the culture of the area, and the foodservice overlap in the area, in order to determine potential menu items, identify opportunities for marketing, and evaluate restaurant discovery platforms. Additionally, researching the economic and labor market will help franchise owners make more informed decisions when selecting a new site. All of these factors will help them stay ahead of current trends and make smart, data-driven decisions about where to expand.
