How to Do Market Research for Restaurants – Ultimate Guide

When starting or operating a restaurant, it is not just about the food. You have to know the market you are going to penetrate. Market research is used to define your customers, assess your competitors, and study the tendencies in the food industry. Let me walk you through conducting market research for your restaurant business.

Understanding Your Customers

Market research is the collection of information regarding the target market and competitors. If done correctly, it can help you learn what customers need, how much they are willing to pay, and what other restaurants are offering. This assists you in making the right decisions. For a new restaurant or an existing restaurant that needs to be upgraded, there is no better way than to conduct market research.

To run a restaurant, one must know who his clients are. Consider their age, income, geographical location, and the type of foods they would prefer to eat. This can be done through polls, online polls and even by observing the traffic in the areas where your products are likely to be sold. For instance, if you have observed many business people, you should concentrate on fast food well-packed in mylar bags custom. If your target is families, you may include a kids’ menu in your restaurant.

Ensure you follow discussions that people are having on social media platforms. Reviews and comments let you know the general impression of customers and what they like and or dislike. They assist you to know your customers, and therefore, be able to design your menu and services to suit their needs.

Competitor Analysis of Restaurants

Competitor analysis is one of the important steps of market research. You should be aware of your main rivals and their products. Consider their menu and prices for their services, their location and what customers are saying about them. Try to go to their restaurants to see what they are doing correctly.

There are four types of competitors to consider:

Direct Competitors: These are restaurants that provide the same type of meals as you do. If you are planning for a pizza place, other pizza restaurants are your direct competitors.

Indirect Competitors: They both offer different food but get patronized by the same people. For instance, if your customers eat fast food, then a burger joint is your indirect competitor.

Substitute Competitors: These are places that offer products that are substitutes to your product offering. For instance, a grocery store that provides ready-to-eat meals.

Future Competitors: These are businesses that may come into your market at a later date. Try to monitor new restaurants that are opening in that area.

From these competitors, you will be in a position to note areas of market opportunities. Perhaps there aren’t enough restaurants in your region that provide healthy food or real ethnic food. This could be your chance, could it not?

Types of Market Research

There are two main types of market research: primary and secondary.

Primary Research: This involves data collection in the form of new data. You can achieve this through a survey, interviews, or a focus group. For instance, you might survey people to know what kind of food they would prefer to be served in the area.

Secondary Research: This employs information from previous studies such as industry reports, government statistics, and articles on the internet. This type of research offers you an opportunity to gain a general knowledge of the food industry and the existing market trends.

The advantage of using both quantitative and qualitative research is that you get a total picture of the market.

Food Industry Market Research

The food industry is dynamic in nature which requires constant change. There is a change in trends and customers are always dynamic in their choices. To be able to do this you have to track the market trends. For instance, the vegan and organic food and sustainable restaurant business is on the rise.

If these correspond to your concept, you can pull more people in.

You should also look at the economic aspects that may influence eating regimes. It is believed that when the economy is bad, people eat out less often. A clear comprehension of these factors assists you in making preparations for such adversities.

Conduct Market Research

When conducting your market research, the first step involves setting out goals that are clear and well-understood. This question should be answered as; What do you want to happen? Is it where you should locate your restaurant or which food items should you offer to your target market? A clear purpose will assist you in avoiding time wastage and achieve a lot within a short span of time.

This is because understanding your goals helps you identify the kind of data you require and how it is going to be utilized.

After identifying your goals, collect all the information you need through primary and secondary research. Primary research entails collecting data from your target market through questionnaires, interviews or focus group discussions.

For instance, you could pose a question to the people living in that area concerning the type of restaurants they would like to be opened. Secondary research, on the other hand, involves the use of other people’s research like articles or reports on the industry to get an industry trend. Using these methods, it is possible to get a more or less comprehensive picture of the market.

Benefits of Market Research

When you know your market well, you can minimize risks. Most of your ideas will not be a waste of time and money and that will help you a lot. Market research is important since it assists you in having a competitive advantage and making necessary adjustments in the market. It also generates customer loyalty because you are providing people with what they need.

Concluding

Market research is one of the most effective instruments that any owner of a restaurant can use. It enables you to know your customers, evaluate your competitors and be strategic in the food industry. Through these few tips, one is able to make the right choices that will result to success. Begin today your search and witness the growth of your restaurant business.