Expanding your franchised business requires knowledge of the food and beverage (F&B) consumer market. Knowing what food and beverages rank high in consumer preference, restaurants that utilize technology for customer experience, and what competition you may face within the local market are key points to consider. F&B consumer research can help a franchisor build a comprehensive understanding of the F&B sector, so they can make informed decisions when strategically expanding their operations.
In this article, we explore the pros and cons of F&B consumer research for franchisors. We will discuss the ways it allows for powerful sales prospecting, marketing, and data enrichment, while addressing the common drawbacks that come with the utilization of this research tool. Let’s dive in!
Pros of F&B Consumer Research
F&B consumer research is a powerful tool for a franchisor looking to expand their business. Here are some of the advantages it provides:
Sales Prospecting
F&B consumer research equips franchisors with data-driven insights and analytics to make informed decisions when prospecting in the foodservice market. Analysing the data provided on consumer preferences of given menu items, restaurants that provide unique customer experiences, and competitive services in a specified market allows franchisors to determine the best locations where potential customers will easily find their product or services.
Marketing
F&B consumer research provides franchisors with data-led industry insights to help attract, convert, and close more leads. Using individual consumer data, franchisors are able to tailor their marketing strategies to better target potential customers in a specific market, allowing them to be more efficient when planning out their campaign budgets.
Data Enrichment
Data enrichment and analysis through F&B consumer research provides franchisors with a more comprehensive market understanding of the area they are looking to break into. Using the data, franchisors can more confidently make decisions and gain competitive advantages when streamlining their production innovations and expanding their businesses.
Cons of F&B Consumer Research
F&B consumer research does come with some drawbacks that franchisors need to be aware of. Here are some of the risks that come with implementing this research tool:
Data Complexity
F&B consumer research can provide complex data sets that need to be transformed into meaningful metrics for decision-making. Oftentimes, minor mistakes in data mining or modelling can lead to inaccurate results. Franchisors need to ensure they have the right team and resources in place to conduct the proper research and analysis of the data.
Data Restriction
A potential disadvantage of F&B consumer research is that the data used to guide decisions may be restricted or limited to the particular area being examined. For example, data may not be totally reflective of the entire market, and adjustments may need to be made when using the data to gain insight into markets outside the initial area assessed.
Final considerations
F&B consumer research provides franchisors with an opportunity to gain meaningful insights into local food trends, target potential customers, and create strategies to expand their operations. There is no doubt that it is a powerful tool for franchisors, but they need to be aware of its limitations when utilizing data to draw conclusions. Having the right team and resources in place to thoroughly conduct research and make decisions is key for successful F&B consumer research.
