By: Heather Fancher
Nature of Products and Services:
The nature of the products and services provided in the restaurant industry are based on customer satisfaction with the food and services that each location provides. Providing a selection of delicious and well-presented food made with quality ingredients that are simple and good tasting is exactly what the customer wants. Most customers go to restaurants to meet with others socially in a friendly environment. Making sure the restaurant is clean, attractive, and the décor is consistent with the food and restaurant’s image and making sure the waiting staff knows that it is ok to allow customers to linger adds to the customer’s satisfaction in a restaurant. The restaurant industry is highly competitive in terms of price, service, location, and food quality and is often affected by changes in consumer trends, economic conditions, demographics, and the concerns about the nutritional content of the food. Customers and Channels of Distribution:
Different customers go to restaurants and buy the products for different reasons. Individuals go to eat and meet socially with other people or just to feed themselves. Businesses choose restaurants based on the atmosphere and product depending on if they require catering for a business meeting or a location they can go and have a business friendly meal. Getting the product to the customer requires a few different tactics. Good press is always a good source to bring customers into the restaurant. Helping the community, making creative changes, and thinking outside of the box are excellent good press. Another way is to create a website that allows customers to find information on your restaurant. Allowing access to the menu online can help customers see their food choices and make a decision to visit the restaurant as well as contact information for customers with questions. Another option is to redesign your menu. Even with the same food choices available, an ugly or outdated menu can cause a customer to perceive lower value for your restaurant. Make sure the menu is fresh, well-written and enticing to customers. Implement frequency marketing. Providing deals or reward programs for customers brings in repeat guests who provide the restaurant with 1/3 of their revenues and they can also help market through word of mouth. Also hosting events for community or business gatherings, parties, live music shows, and tastings can bring in more customer interest. The commonly used channel to customers is advertising. Commercials and ads introduce your restaurant and products to a wide array of customers. Size of the Industry:
Major segments of the restaurant industry are full service, quick service, eating and drinking places, and retail host locations. According to the National Restaurant Association, the restaurant industry is still one of the economy’s top employers. Forecasters believe the industry to increase its job count to 14.1 million positions by 2020. In 2011, there were 39,296 eating and drinking places in Texas. In 2013, Texas’s restaurants are projected to register $40.8 billion in sales and account for 1,074,200 jobs; 10% of employment in the state. In Texas restaurants generate an additional $1.23 in sales for the state economy, an additional 26.3 jobs, and are projected to employ 1,245,000 people. That’s a 15.9% job growth in 2013. The restaurant industry has 980,000 locations, $660.5 billion in sales (4% of U.S. GDP), and 13.1 million people (10% of the workforce). Geographic Location of the Industry:
Some of the current major markets for the restaurant industry are in busy, metropolitan locations where there are many people looking for different food options but also where the economy is still thriving enough for people to be willing to spend. A high growth market is an area where disposable income is finally becoming...