Common Problems restaurants will still face in 2021

Every restaurants owners worst nightmare is walking into an empty restaurant in the middle of the day. But currently with the pandemic at hand restaurants are closing at an alarming rate, and without help, they fear it’s only going to get worse.

Here are some problems to still look out for in 2021.

1. Unique Selling Proposition

One of the main factors affecting the restaurant business is the difficulty of coming up with a unique selling point in an oversaturated industry. While a superb menu and excellent customer service are vital to your success, they are not a unique selling point. What will you be bringing new that your competitors don’t already have? How will you stand out?

Your customers need to know why they should eat at your restaurant and not at your competitor’s. You need an original idea – something even better than great food and then build your brand around it creating a personal identity for your restaurant. They are merely meeting the expectations of your customers. It is time to exceed them. Consider Sonic. They offer a nostalgic 50’s feeling. Burger King tells you, “You’ll have it your way.” 

A unique selling point offers your customers a feeling that enables them to remember you long after they are gone. Let your food, your service, and your unique selling point and identity make an emotional connection with your customers.

2. Marketing

Many owners fail to pay enough attention to marketing making this a common problem in the restaurant world. Although, it’s not easy to put on your marketing cap every single day. However, it’s not something you can ignore without consequences. Certain things, such as social media marketing, are greatly affected when you don’t post for days. The following are a few areas to attend to now in order to avoid the pitfalls that not-enough marketing incurs:

• Formalise your brand standards. This includes mission statement, logo, graphics, guidelines, etc.
• Make a marketing plan. Daunting? Start small and work up to a six month or yearlong plan.
• Get a responsive website that looks great on desktop, tablet and mobile phone.
• Engage in social media and digital marketing.
• Start an email database.
• Create a customer loyalty program.

Be creative with your marketing. Remember to work according to your budget, there are inexpensive ways to market your restaurant make use of them.

3. Adapting to consumer behaviors

Staying relevant and profitable requires more than following the latest food and beverage trends. Restaurateurs who understand their target market, including evolving preferences for ordering, payment, and add-on services, increase profits.

Along with your restaurant POS system and loyalty reporting data, get input directly from consumers. Use online polls, fun quizzes, and feedback forms to test ideas or estimate perceived value.

Adjust your offerings by exploring:

• In-home experiences: Provide convenience by promoting lunch specials to remote workers, upselling grocery items, or delivering bundled family meals.
• Partnerships: Delight guests by partnering with local businesses, such as health and wellness centers, to offer post-workout drinks and snacks.
• Mobile experiences: Support digital-savvy customers by making sure your website and loyalty program give an optimal mobile experience. Need a website? Check with Terra Sunny as they're currently giving special offers within budget.

4. Ineffective management

Restaurant management is a tough job because it’s a balancing act between staff, business owners, and customers. The truth is even if you know how to manage restaurant staff, you won’t have the time to do that and also keep a close eye on day-to-day operations. Many small restaurants end up not paying attention to the following items as they manage the day-to-day operation of their restaurant:

• How many customers are you feeding each day? Break it down by mealtime.
• Keep track of ordered menu items. Know whats not being ordered and take it off
• What are your most profitable menu items?
• What does it cost to make each menu item? What’s the profit margin?
• Do you have a budget for labor? Are you sticking to it?
• How much do you spend on labor compared to your restaurant sales?
• How much loss is involved in your inventory?
• Do you have sales goals? Are you meeting them?
• What is your profit and loss for each week you are open?

Invest in your managers by offering extra training while taking actions to improve operations such as:

• Empowering management: List job responsibilities and allow managers to take action without worrying that they’re overstepping.
• Driving accountability: Teach supervisors to use POS reporting data during shifts, like real-time labor costs, and motivate them by setting goals.
• Improving communications: Work with your managers to convey rules and information to the staff so you present a united front.

5. Unengaged customers

Guest retention stems from more than great food and excellent restaurant customer service. Engaged customers talk about your brand, click on your emails, and use your text coupons. According to a survey by the restaurant marketing agency MGH, “Of respondents who actively follow and engage with restaurants on social media, 74% say they are more likely to visit or order food from those establishments.”

Build relationships with your guests by:

• Investing in loyalty: Choose a reward platform that uses SMS or text messaging and email to reach a broader audience.
• Personalizing your communications: Segment mailing lists to send targeted offers, such as family meals rather than portions for two.
• Offering self-service options: Include frequently asked questions on your website so guests can learn about your food ingredients online.
• Interacting on social media: Reply promptly to mentions or comments, and thank fans who share your posts.
• Asking for support: People want to help small businesses succeed. Tell them how to do it by including a call to action in all of your communications.

Have you experienced another problem common to restaurants that isn't listed here? Drop a comment below.

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