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How restaurants can beat competitors?

Covid changed the market dynamics in many places and especially small time restaurants are finding it hard to survive post pandemic. One thing restaurant needs to understand is that the competitors from the past are not the competitors they face now. In the past, you only had to worry about similar restaurants in the same geography. Now you need to think about online ordering services like Swiggy/Zomato as well as cloud kitchens with no store fronts but serving the same customers that you are also targeting.

After the pandemic started

After the pandemic started

  • 25% food business operators shut down permanently
  • Nearly 2.4 million jobs lost in restaurant industry
  • Indian food market size shrank to Rs 200,762 crore from Rs 423,624 crore in FY2020
  • Average revenue post-lockdown seeing de-growth of 46% compared to pre-Covid levels
  • Average profitability fell 88%

At the same time

Analysts from Sanford C. Bernstein (India) Pvt. Ltd, in a report on 20 January said, “Zomato has recovered from Covid with GMV increasing from about 20% of pre Covid levels in March/April to about 125% of pre Covid levels in Dec-2020.”

As a restaurant owner, here are some tips on how you can compete against online delivery services and cloud kitchens.

  1. Offer a unique dish or service: One way to differentiate your business is to offer a dish or service that cannot be found on these large e-commerce platforms. This could be a specialty item, a customized flavor, or a service that is not available online.
  2. Focus on customer service: Small restaurants often have the advantage of being able to provide personalized and attentive customer service. By offering excellent customer service, small restaurants can differentiate themselves from cloud kitchens and build a loyal customer base.
  3. Utilize social media and online marketing: While small restaurants may not have the marketing budget of large e-commerce companies, they can still effectively reach customers through social media and online marketing. By building a strong online presence, small restaurants can attract customers and compete with larger competitors.
  4. Offer in-store no wait pickup or local delivery: Many small restaurants can offer the convenience of in-store no wait pickup or local delivery, which may be more appealing to some customers than waiting for food to be delivered by a stranger. VendnGo food kiosks can be a good solution for implementing no wait pick up in your stores.
  5. Partner with other small businesses: Restaurants can also consider partnering with other small businesses in their community to offer a wider range of products and services. By working together, small retailers can pool their resources and reach a larger customer base. For eg: offering catering services to a religious setting or community hall.

We can help you to come up with a plan on how to run your business better. We offer you free social media advertising packages that can be tied to your food menu and free online ordering websites.

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