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Why Is Big Data Analytics Important for Restuarant Industry?
Why Is Big Data Analytics Important for Restuarant Industry?

August 2, 2022

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Big Data and its analysis have come as a disruptor for the food industry, more so for restaurants. There was a time when restaurants were largely run on the gut feelings of a manager or the whims and fancies of the owner. Those days are fading away.

Restaurants now have a new “help” – data analytics – to get a leg up over the competition, as well as to grow, leveraging on it to convert Point of Sale (POS) and marketing data into actionable knowledge. And from the looks of it, they need all the help they can. In the last decade or so, with the advent of technology, the Internet, and the smartphone, the food business has got extremely competitive. The weak have fallen by the side, while the survivors are finding it an ever-uphill climb.

Well-known global market research company, The NPD Group, has predicted a “flat” growth in 2017 for restaurant traffic, a 2 percent decline among full-service restaurants, and no growth for quick-service restaurants (QSRs).

Traditionally, restaurants have always had vast repositories of data; in fact, the flow of data starts the minute the doors open. But earlier, it was not possible to extract meaning from the data because of a lack of tools. With the advent of technology, that’s no longer the case.

Restaurant owners have started deploying analytics to boost operations, specifically targeting two areas – customers and menu (front-facing) and the kitchen (back end). 

Customer analytics

Today, data analytics is the way to a customer’s stomach. In two ways – getting intimate with him and his dietary needs, and adjusting the menu in a way that will get his taste buds going. But how does a restaurant that caters to hundreds, even thousands of customers, get down to that level of granularity?

There was a time when restaurants knew their regulars by name. That relationship slipped into the abyss of anonymity. So much so that today, restaurants barely know the names of not more than 15 percent of their customers.

So the first step in regaining customer intimacy is to change that anonymous relationship with your customer into a known one. The capturing of data from the numerous touchpoints such as credit cards, response or remarks cards, even social media, and online search, and compartmentalizing/analyzing the same can help a restaurant start knowing each customer better.

There’s a saying that goes – If data can help a customer find a restaurant, it can, in turn, also help a restaurant find its customers.

Original Source: https://www.expressanalytics.com/blog/understanding-restaurants-customers-using-analytics/


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Caroline Smith
Marketing manager at Express Analytics

Passionate about writing articles on Customer Analytics, Artificial Intelligence, Marketing Analytics, and Digital Marketing.

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