The text below is the transcript for the above video. You can find the full post here Restaurant Competitive Analysis
Hello and welcome to this week 30 minutes restaurant marketing, this week I will talk about the importance and the steps necessary to make a great restaurant competitive analysis.
The restaurant competitive analysis is very important for any restaurant that wants to succeed. That is why, all restaurant businesses or marketing plans must dedicate a chapter to it.
In summary, a competitive analysis consists in evaluating your restaurant competitors in order to identify their weaknesses and strengths. This valuable information will provide you with direction in all your future strategic decisions.
One example: After working with a client, we came to the conclusion that his restaurant was the only restaurant between all its direct competitors that had free parking available, besides that, all its competitors closed the kitchen at 10pm but he served until midnight, with this knowledge we understood that all future marketing materials should emphasize these two competitive advantages!
So now that you know the importance of working in your restaurant competitive analysis, let’s go through the 3 steps you need to follow to develop it:
The first is: identify all the restaurants in your market area. You can find this information in your local Chamber of Commerce, local directories like yellow pages, city guides, google places, TripAdvisor, etc… Try to gather as much restaurants as you can in your area. Do also some key worded searches on google related to your direct competitors. Ex: if you are a pizzeria in Lisbon, do a search in google for Pizzerias in Lisbon.
- Now that you have created a list of all restaurants in your market area, the second stage is to select the ones that you believe are competitors. When you do this selection, don’t select just the ones that serve the same kind of food and menu because, believe me, you have more competitors than that.
If you serve high end Italian cuisine, the high end Spanish restaurant across the street is also a direct competitor. When people are looking for a high end restaurant experience they may be uncertain between selecting your restaurant or the Spanish one across the street.
Or if you are a take away fast food restaurant, the supermarket next door that sells packed ready to eat meals is also your competitor. Potential customers will evaluate all their possibilities when they want to buy a ready to eat meal.
- Another thing that you should do is to search for owners of restaurants that have closed down in your area. Invite them for lunch at your place and try to understand what their challenges were, so you create a plan to tackle them in case the same challenges appear to you. Also ask them what they believe were the mistakes they made, this information has enormous value and can be decisive to guide you in your route to success.
- And the last and third stage, is to visit each one of the competitor restaurants in your list and identify their weaknesses and strengths.
If you have the possibility to have a chat with the manager don’t lose it, and try to get some valuable information about their restaurant strengths. Restaurant managers usually have no problem in sharing what they believe are their strengths, but they are not so comfortable about disclosing their restaurant weaknesses.
So better don’t ask about their weaknesses, but instead ask: What are your challenges? With this question they disclose some of their weaknesses, and by knowing your competitors weaknesses, you can easily find your strengths right?
To help you out in all the things you need to evaluate during these competitor analysis visits, I have created a checklist to guide you in all aspects including location, design, menu, service, food quality, capacity, and many other aspects you should evaluate. I will leave a link at the video description below for you to download it.
Thank you for watching, hope it helps, and if you want me to keep creating restaurant marketing videos please support by liking, commenting, or sharing below. Thanks and Cheers