"The restaurant industry is grappling with big questions this year. Diners these days are more value-conscious, more selective, and more willing to stay home; and costs, along with competition, continue to rise for operators. As big chains and local independents try to protect sales or regain their footing, analysts who spoke to Business Insider said the year ahead will come down to whether restaurants can do more with less, without losing what made people want to dine out in the first place."
"Consumers are looking for value, but they're also cutting back on frequency - restaurants across the spectrum have to improve quality and the dining experience while controlling costs to maintain all-important same-store sales metrics, Asit Sharma, analyst for The Motley Fool, said. Operators are trying to understand their customers' restaurant and dining behaviors better in order to determine what they value most, and adjust their strategy accordingly, Michael Della Penna, the chief strategy officer at the digital advertising research firm InMarket, said."
Diners have become more value-conscious, more selective, and more willing to stay home, while food and wage inflation continue to raise operator costs. Restaurants must improve quality and the dining experience while controlling costs to protect same-store sales. Operators are investing in better understanding customer dining behaviors to prioritize what customers value most. Competition has broadened beyond other restaurants to include the choice to eat at home. Brands are using limited-time offers and collectible promotions to drive visits, app downloads, and loyalty sign-ups to deepen customer connections and repeat business.
Read at Business Insider
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