Set yourself up for success by digging into the data
A successful expansion requires a deep understanding of your new market. Many restaurant leaders admitted they lacked crucial insights before opening, particularly regarding local demographics, food preferences, foot traffic and competition.
With 84% identifying marketing as a challenge during expansion and 65% finding it difficult to build customer loyalty at their new location, an ability to leverage data is essential. Business intelligence tools can provide real-time insights into market trends, helping you reach the right audience and customise your offer.
Understanding the cultural and dietary preferences of the local population and meeting their expectations is key. A well-researched approach will ensure your new location meets community needs and stands out from the competition.
One executive pointed out : “By understanding the local consumer demographic structure, we can accurately formulate menu and marketing strategies, such as whether we need to add vegetarian options or provide more family-friendly packages.”
“We’re never going to be the type of place that prioritises shaving a few milliseconds off of a transaction… So it’s important to us that the systems are as tight as possible, so that we can then spend time having those interactions. We wanted a system that was quicker and more customer-friendly. So things like the customer-facing screens, things like a really easy interface; it just makes the workflow better. It makes it better for the customers. It makes everyone happier.”
Understanding local tastes helps create a menu that stands out and grabs your customers’ attention. Eight in 10 executives used customer feedback to optimise their menus and set prices and 75% relied on real-time sales data to identify trends and adjust dishes, demonstrating the importance of using analytics to make more informed business decisions. Balancing proven favourites with new concepts ensures your menu attracts and retains diners in a new market.
“If we make more of what’s selling well, we keep the customers happy and we are wasting less in the kitchens. We know what’s working with our menu, what to add to the list, and what not to bother adding to the list again.”
Marketing your new location is just as important as opening it. Nearly half (46%) of restaurant executives incorporated marketing technology into their expansion plans. Effective promotion strategies – such as social media campaigns, community engagement, launch events and targeted email marketing – can help generate buzz, attract local customers and drive retention.
Tools like Square Customer Directory make it easy to track interactions and personalise marketing efforts to specific groups. By storing all your customer information in one place, This customer relationship management (CRM) software makes it easy to understand how customers interact with your business and engage with them.
While customer demand and/or market opportunity was the most influential factor in driving growth – cited by 33% of executives – it can be a challenge to reach and retain customers in a new location. Loyalty programmes help bridge that gap, with nearly half (49%) of executives maintaining their existing loyalty technology and 42% adding new solutions to enhance retention.
A well-designed loyalty programme rewards repeat customers, encouraging engagement and strengthening relationships.
Remember: Turning walk-ins into regulars with loyalty incentives can be a game-changer for long-term success.
