Businesses are increasingly depending on big data to gain insights that would be too time-consuming or impossible to retrieve through other methods. It’s not surprising, then, that restaurant brands are following that lead. There are numerous reasons why they do so, and the following are some of the most prominent.
Boost Customer Experiences
Data gathered by the NPD Group warns of a two-percent decline in growth for full-service restaurants and no growth for quick-service restaurants.
Another survey carried out by Reuters/Ipsos at the beginning of 2017 found that a third of adults in the United States said they were eating out less frequently than during the three months before the poll. In most cases, the change was due to price increases.
Even if restaurants aren’t willing to make menu items cost less, they’re investing in big data that could make the overall experiences more pleasant for the people who choose to spend their hard-earned dollars dining out.
Chomp, a Rhode Island burger restaurant, extracts a wide variety of information from compiled data. All of it could help people have more favorable opinions of restaurants and what it’s like to eat at them.
For example, it’s possible to look at the occupancy of a restaurant per hour or see which menu items diners like best. After retrieving that information, it becomes easier to decide whether to schedule more servers for the busiest shifts or order more ingredients to avoid running out.
Track Engagement Levels
It’s often difficult to gauge whether a campaign is working well until months after its launch. However, big data makes it simple to see how many people are participating in a desirable action, which may help restaurant executives decide whether to expand a campaign or end it early.
For example, many restaurants use QR codes to deliver information to customers. Whether incorporated into menus, comment cards, bus stop advertisements or newspaper circulars, QR codes can give hungry people sneak peaks of new menu items, let them know about current promotions and more.
Big data analytics could give definitive information about how many people see QR codes on menus and what percentage of those viewers scan them to get more details. However, that’s not the only way to understand how customers prefer to engage with restaurants.
Recently, Chick-fil-A upgraded its mobile app and analyzed data collected during A/B testing to determine which layouts provided the most clarity about payment options and increased conversions. As a result of that data-driven approach, the quick-service restaurant upped payments through its mobile app by six percent.
Make Menus More Enticing
Figuring out what to order while gazing at an expansive menu can feel overwhelming. However, Pizza Hut began using eye-tracking technology that detects where customers look when surveying the available choices, then gives recommendations about what to order. An algorithm delivers the results in about three seconds.
Besides giving customers guidance about what to pick for their pizza-centric dinners, such technology could also help restaurant managers understand which elements of a menu are most likely to achieve mouth-watering outcomes. Getting started with that process often begins with accessing a restaurants point-of-service, or POS, system.
Sales figures can confirm suspicions, such as that once-popular menu items don’t have the same appeal anymore and that diners prefer newer choices to the older staples. Knowing that information could give a restaurant manager the evidence necessary to make a smart decision about taking an item off a menu and replacing it with something else.
Also, it’s useful to pay attention to data from customers who customize their orders. If more than half of the people who order a certain sandwich substitute sweet potato fries for the normal fries, the trend could indicate it’s time to make the former choice the standard menu offering.
If diners don’t immediately see things to eat that make them feel excited about eating out, they may not return. Menus optimized with big data could cater to their tastes.
Big Data for Restaurant Success
When used right, big data can lead to smoother operations for busy restaurants while making it more likely for customers to enjoy themselves so much that they eagerly return.
Because people are becoming more conscious about how companies collect information about them, though, it’s a good idea for restaurants to display formal disclosures about data usage and give customers the ability to opt out when desired.
Have you thought of more ways big data can revamp the restaurant industry? Let us know!
