Gathering information about your competitor is one of the best ways to gauge your company's performance. The two may not seem to relate, but with the information you gather through a comprehensive analysis, you can make better, more insightful decisions for your restaurant. The better you understand your competitors, the more powerful your marketing and outreach efforts can be.
What Is a Competitor Analysis?
Utilization of a competitor analysis opens the door for you to see:
Who your competition really is (meaning, who your customers would go to if they did not go to you)
What your competition offers that you do not
How well does your pricing stack up with their costs
Key differentiators that make consumers seek out you (or them) more frequently
To complete a comprehensive competitor analysis, you will need to examine a great deal of information and carefully consider it objectively. This may include menu items, marketing methods, customer base, and target customers, as well as pricing and branding.
Because of its importance, working with restaurant consulting services that will handle a competitor analysis for you could be critical. That expertise ensures you are always able to gather accurate, actionable information.
How a Competitor Analysis Improves Your Business
Perhaps you know you are not going to change your business based on what is happening with your competitors. You may list numerous reasons why you are different. However, for the customer who is searching for a place to get a meal, none of those factors matter. If you cannot compete, then they will choose someone else.
Consider some of the direct results that a restaurant competitive analysis can offer to your business.
Better tailor your marketing to key differentiators. When you complete a competitor analysis, you gain insight into what the competition does well and what you do better than them. This can help you enhance your messaging and branding.
Stop wasting money on factors that are less beneficial. In some situations, you may learn that the competition is beating you in some areas. This allows you to make adjustments that could be more effective at boosting revenue. That could be, for example, changing up your marketing reach.
Find gaps in your competitor’s strategies that could benefit you. You may know that once their customers start coming to you, you can win them over. Look for areas of opportunity, whether that’s in your marketing messages or in offering a specific service that beats out the competition.
If your business is doing well, a competitor analysis keeps you on top by demonstrating where the competition sits in terms of providing a better product or service. If your business is struggling, a competitor analysis enables you to gain insight into areas of opportunity that may be beyond what you can see right now.
Conducting a Competitor Analysis: Best Practices to Put in Place Now
Utilizing a professional service to handle restaurant consulting services, such as competitor analysis, is often beneficial. It ensures that an objective party always handles the necessary steps while not involving emotions or personal experience. To be beneficial to you, a competitor analysis must be accurate.
Consider these steps to help you ensure that it happens:
Look at everything, not just the menu. You can start with the menu and pricing, but there is much more to consider. Look at how their customers interact, feel, and present themselves. Consider the atmosphere within the space. Look at how the employees behave.
Consider the differences carefully. Notice what your competitors are doing well. Make it a point to focus on these areas during your analysis. Then, look at what is different. Is their technology more advanced? Are they using different styles of dishes or engaging customers in a different way?
Take a look at their online presence. Often, consumers today turn to social media to find the best place to eat near them. Consider how well your competitors are followed online, whether they have an updated website, and what services they offer. Catering, party rooms, special discounts listed online, and other services are all differentiating factors you need to think about for your own company.
Let Our Professionals Get to Work for You
Utilizing a competitor analysis, you gain valuable insight that can drive business decisions. Keep control over your business’s bottom line and drive success by working with the team at Prix Fixe Accounting. Let our consulting services answer your questions. Contact us now.