The restaurant industry is constantly evolving, and it’s making it harder for operators to maintain revenue growth. The shifting trends present new problems for restaurant operators, including but not limited to:
- Declining visits as a result of strong competition and non-traditional eateries
- Less foot traffic as customers turn to online choices
- Profit loss from delivery demand eroding margins
- Limited solutions beyond increasing prices to keep revenue increasing
To help restaurant operators navigate this unsteady terrain, we’ve put together an essential guide that addresses these pain points and provides real, revenue-driving strategies.
New customer acquisition strategies for restaurants
While restaurants face declining traffic and fewer repeat visits, the amount of money people spend on eating out has never been higher. In 2018, Americans spent 54% of their food budget on eating out, according to a report from the Department of Agriculture.
If Americans are spending more, why are restaurants suffering?
The simple answer is there’s more competition. From food trucks to delivery apps, competition is as stiff as it is diverse. To fight back and thrive, restaurant operators need effective strategies to acquire new customers:
Know your ideal customers
Who are your best customers? If you understand who they are, what they order, when they visit, how often, and things like their lifetime value, you can use strategies to attract more high value customers like them.
To know your customers, you need to capture behavioral and purchase data. With purchase data, for example, you can see which customers are contributing the biggest portion of your revenue. The top 10% of your customers usually drive up to 50% of your revenue, according to case studies.
Essentially, you need data to know who your customers are so you can find more of them.