The restaurant industry is an ever-evolving and increasingly competitive market to operate in — from the absolute lowest-cost operators to those that push the boundaries of innovating high-end dining experiences, the landscape of the restaurant industry is wide and varied.
To ensure survival in this unpredictable market, restaurant owners must continually assess their strategies to define where their businesses are strongest, and where they need to make adjustments or improvements — data is key in helping restaurant owners to make the right decisions.
Advanced analytics, enhanced by data, can create more meaningful results and insights than ever before. But the massive amounts of data within the restaurant industry can be a double-edged sword — restaurant owners need to be sure that their data analysis reveals the right facts and is used ethically in a ones own restaurant business.
Today, Brizo provides a range of services to equip restaurateurs with the right data and insights to succeed — but understanding the pros and cons of the data available to them is a cornerstone of making the most of their data-driven insights.
In this article, we dive deep into the pros and cons of the data that is available to the restaurant industry, from sales intelligence to marketing insights — helping you to assess what is right for your business and your customers.
The Pros of the Restaurant Industry Data
Data helps restaurant industry leaders make meaningful choices and decisions in the services they offer and anything from menu updates to customer service operations that can help to increase profits. Here are some of the key pros that the right restaurant industry data can book:
Sales Intelligence
Having the right insights into the sales metrics of the restaurant industry can help restaurant owners drill down into tangible results. Knowing what certain sales teams, products, and geographic regions are profitable is invaluable knowledge for any restaurant.
Using our advanced analytics, restaurant owners can predict customer’s behaviours, allowing them to make better decisions when it comes to their marketing campaigns and operational processes.
Competitive Intelligence
Restaurants are constantly competing for customer attention and, in turn, sales. Using restaurant industry data, restaurants can gain insights to make informed decisions about their operations and compete better in the local and regional food markets.
Identifying trends in the market and assessing the competition is key for any restaurant — our data analysis helps to smash the barriers to success by understanding people’s sentiment on different restaurant menus, positioning marketing campaigns against established competitors, and pursuing the right customers within their localities.
Marketing Intelligence
Having the right data, including menu information and new product releases, not only helps with understanding the big picture of the restaurant industry, but also opens the door for enhanced marketing campaigns and opportunities.
Data sets can also provide valuable insights for membership cards — using these details can give restaurant owners a better understanding of customers and their reservations, allowing for more valuable customer service and a better overall customer experience.
The Cons of the Restaurant Industry Data
It is also important to note that there are cons to analyzing and using restaurant industry data. Here are some of the key components that restaurant owners need to consider whenever using and evaluating data.
Over-Reliance on Data
The very nature of relying on data comes with its own risks — data can be incomplete or inaccurate, preventing restaurant owners from truly understanding the consumer landscape. Therefore, it is important to be aware of the data as well as the context, as often the context can reveal meaningful insights that would otherwise be missed.
In addition, the focus of perception-driven insights often fails to take into account a restaurant’s local market. Whilst regional and nationwide trends can be identified, the nuances of a specific market are often overlooked.
Consumer Privacy
Restaurant owners should also be aware of how distinct sources should work together to ensure the privacy of their customers.
It is important to be conscious of the regulations concerning customer data. Being careful with how much customer data is used will ensure customer loyalty and reduce any risks that may stem from collecting and using customer information.
Algorithmic Bias
Algorithmic bias is a common problem for restaurant owners when it comes to big data analysis. Without due diligence when it comes to a data set, it can be difficult to determine whether the data is being used to reinforce existing biases.
Data is not superior to human judgement, and it is important that restaurateurs factor in all meaningful parameters when it comes to examining their data — something that algorithmic models aren’t necessarily aware of.
Final considerations
Harnessing restaurant industry data, when used smartly, can be a powerful tool in the restaurateur’s arsenal. However, caution needs to be taken when coming to relying on data for decisions, as data is only one part of complex issues, and cannot always provide all the answers.
Ultimately, the balance must be struck between analytical data and consumer opinion when it comes to making decisions on how to best run a restaurant, but thanks to advanced analytics and market insights, making those decisions has never been easier.
