How to Conduct Market Research in the Restaurant Industry?
5 Methods to Explore the Food Market!
When planning to open a restaurant, market research is a crucial phase. Neglecting this step and blindly starting a restaurant could lead to challenges such as facing tough competition and struggling with a limited customer base. Today, we will introduce five commonly used methods for market research:
Understand Competitors
Gaining a deep understanding of your target customers' needs and preferences is essential. You can delve into information regarding their preferred types of cuisine, spending habits, dining times, ambiance preferences, and more. Imagine you're considering opening a small Japanese cuisine restaurant; you should focus on researching if you have competitors nearby. For instance, search online and visit local eateries, carefully examine their menu structures, pricing strategies, and online customer reviews. This information can help you identify competitive advantages, whether in pricing, menu offerings, or other aspects.
Understand Customer Needs
Imagine yourself in the shoes of your target customer group, such as young graduates and students. Put yourself in their position and think about the kind of dining experience they would desire. If you can't directly put yourself in their shoes, you can conduct surveys among your young friends or on social media to gain detailed insights into their needs. For instance, these young individuals might favor diverse Japanese cuisine options and a comfortable dining environment. These insights can help you create a menu and restaurant decor that aligns with customer preferences, while also allowing you to formulate targeted marketing strategies.
Conduct Surveys
What questions you ask in a survey is crucial! You need to tailor different surveys for different demographics. For instance, if you're conducting a survey on social media, you can set up some relatively easy-to-answer questions, such as people's preferences for dishes, their preferred dining times, and their level of acceptance towards prices, and so on. After collecting various feedback, let's say 20% of respondents mention their preference for vegetarian options. This information can guide you in considering the addition of vegetarian choices to cater to the diverse needs of customers.
Analyzing Market Trends
Researching trends and developments in the restaurant industry, such as popular cuisines, dining habits, and preferences, can help you anticipate future market trends. This enables you to formulate forward-looking restaurant strategies. For instance, in your market research, you may find that there's a growing awareness of healthy eating and environmental sustainability in the local community. You might also notice an increasing demand for fresh ingredients and innovative dining experiences. This prompts you to consider emphasizing the use of fresh ingredients in your menu and launching eco-friendly initiatives to attract customers interested in these trends.
Analyzing Geographic Location
Study the geographical location of your restaurant to understand the surrounding population, purchasing power, commercial areas, and tourist attractions, among other factors. For example, if your restaurant is located in a student district with a lively environment comprising campuses and residential communities, you realize that your target customers are primarily students and young families. You plan to offer special deals after school and on weekends, while incorporating youthful and fashionable elements into your restaurant's décor to appeal to this customer segment.
We've previously discussed in several episodes how to choose a restaurant's geographical location. You can click here to view those videos.
In conclusion, conducting market research requires careful observation and thoughtful analysis, which paves the way for a path full of opportunities for your restaurant business. Through the examples provided above, you can see how each market research method helps you better understand your target market, find entrepreneurial directions, thereby reducing risks and increasing the chances of success. Whether you're a newcomer or an experienced player in the food and beverage industry, market research is indispensable.