The foodservice industry is a vibrant ecosystem of restaurants, quick-service kiosks, catering services, wholesalers, and other food industries. To understand the nuances of the industry, operators must conduct extensive market research on food trends, competitive products, and legislative changes. The insights gained from this research provide the basis of business decisions that can make or break a company’s future.
In the 21st century, the foodservice industry has been making increasing use of custom research to support decision-making processes. While there are many benefits associated with this type of research, there are also some downsides that should be taken into consideration prior to implementation. This article will examine the pros and cons of foodservice custom research in order to provide franchisors with the intelligence needed to make informed decisions about their operations and expansion.
The Benefits of Foodservice Custom Research
Custom research is often conducted by an outside consultant or agency, enabling the franchisor to devote their resources and expertise to other areas of their business. It is possible to gain more comprehensive insights on the industry than would have been obtainable using internal resources.
Furthermore, custom research can reduce the amount of time and resources needed to gather data and perform analysis. Specialist consultants are skilled at collecting data quickly and efficiently, often producing results with a shorter turnaround time than what would be required within a company. In addition, consultants can be held accountable for their work, which is an advantageous position for any franchisor.
The Drawbacks of Foodservice Custom Research
The greatest downside to engaging in custom research is the cost associated with it. Hiring consultants is often an expensive undertaking, and the cost may be too high for smaller businesses. As well as this, the nature of the research may be marked by uncertainty and unpredictability. The findings of custom research are not guaranteed to be accurate and the franchisor may not be able to accurately assess a consultant’s work until after the research is completed.
There is also the issue of bias in custom research, as the franchisor typically agrees on the parameters of the study prior to engaging in the research. This can skew the results and lead to a less accurate assessment of the market.
Making the Most of Custom Research
When engaging in custom research, it is important for the franchisor to make sure they are getting the most out of the experience. This can be achieved by making an effort to understand the internal environment of the company, including its vision, objectives, culture, and resources. The franchisor should also be aware of the limitations associated with custom research and assess what research could be performed in-house.
It is also important to ensure that the consultant hired is one that can provide the expertise and resources required. The franchisor should carefully review past work and references to ensure they are working with someone that matches their needs and budget. Finally, the franchisor should track the performance of the custom research, reviewing the accuracy of the findings and outcomes.
The essence
Foodservice custom research can provide franchisors with invaluable insights into the markets they are operating in. However, it is important to take into account the potential drawbacks when considering this type of research, as it can be an expensive undertaking with a potential for unreliable results. For franchisors looking to make the most of their research and knowledge, taking the time to understand their own operations, limitations, and goals before engaging in custom research is advisable.
