How can Big Data improve your restaurant /business?

Welcome back to another exciting topic about restaurants. Today our leading actor is called BIG DATA, and I am glad to explain how we can take advantage of it to increase sales in Restaurants.

Let´s get started!

Sources: bookingblogmedia.blogspot.com

What is big data?

Big data represents a massive volume of both structured and unstructured data that is so large and difficult to process using traditional database and software techniques. Yet, the process can draw meaningful conclusions from datasets that seem entirely irrelevant to the human brain of even a less powerful computer program.

Sources: YouTube.com

Small restaurant with big data

Sources: YouTube.com

How to collect information Big Data Analytics?

 Big data analytics provides relevant data in a few easy steps:

• POS system. It all starts with the POS system, as it keeps a perfectly accurate record of all orders and financial transactions per guest.
• Phone calls. Many visitors call restaurants to book a table, which gives you the chance to learn more about their preferences and add information to the big data platform.
• Social media. The marketing manager must be running at least a few social media accounts, so let it become another source of user-related information.
• Online surveys. Asking customers to tell you more about their experiences in the restaurant through online surveys.
• Email. It is still the most popular channel of business communication, so don’t hesitate to utilise it and ask your guests for feedback.
• Live chat. Facebook Messenger and other live chat platforms can collect tons of helpful information about each consumer separately.
• Chatbots. The process is even more straightforward if on chatbots for professional communication. Modern chatbot tools will store user-related information directly to the system and allow you to analyse it quickly. (Foster, 2019)

 

How to use big data in restaurants?

Sources: Google.com

• New growth opportunities

Using big data analytics, it can evaluate and interpret data of various restaurant locations. That will help cut back on unnecessary activities and find new growth opportunities.

Further, using data insights with a customer engagement strategy will enable you to feed the insights back to the funnel. It will assist you in getting more customers at a particular restaurant location, for instance, offering nearby users special discounts, free services, or membership coupons.

• Promote some products

Although the data we collect is raw and too much, it can still be used to drill down to the minutest detail. For example, the owner can figure out the most preferred meal and use this to promote the brand. Then, offer discounts and special services whenever someone orders this menu item.

• Enhance user value

In the restaurant business, it is necessary to engage every customer differently. However, without big data analytics, this is too hard to accomplish. Big data analytics can enable analysing customer behaviour and give them customised offers accordingly. 

• Increase traffic

Sometimes the market is down, and it will not receive as much traffic as possible. For instance, people visit restaurants on Monday. You can interpret the quiet times of the month, week, or day through big data and utilise specific strategies to attract more users during this time.

• Analyse employee performance

While the restaurant business may be all about the customer, keeping users happy can be only achieved with good staff. Therefore, the restaurant needs big data analytics to evaluate your team’s performance, design specific training programs in the area they lack and boost your user service.

Various performance indicators for staff performance evaluation, such as whose customers are the happiest, the users like the food, or which cuisine is not being liked. This data can enable restaurant owners to make some amends to drive 100% user satisfaction ultimately. (SHARMA, 2019)

Strategies to increase sales in a restaurant using big data

1. Customer profiling. The first way to use big data is to conduct a customer profile analysis. With so much information at your disposal, it can figure out the traits of a typical restaurant visitor and learn where they come from, understand their style, personal preferences, etc.

2. Improve menus. Big data helps to identify the worst and the best items from a menu, while you can also pinpoint dishes that require continuous promotion or special discounts. Besides that, you can compare guests’ interests based on day periods or days in the week to develop a highly customised menu.

3. Improve scheduling. Most restaurant managers have difficulty making schedules and planning who should work which shift. Big data can solve the problem quickly, so you have to let it create a program on your behalf. Then, with all the variables taken into the calculation, big data will promptly give you both short- and long-term schedules.

4. Track inventory. Tracking inventory is another significant aspect of the restaurant business because you don’t want to overstock and run out of stock. Big data successfully recognises cooking and ordering patterns, which gives it the ability to track and plan inventory better than any human manager.

5. Enhance the guest experience. Restaurant visitors pay for experiences as much as they pay for food. In such circumstances, you should take advantage of big data to enhance guest experience based on previous interactions with the same visitors, ordering preferences, reservation habits, and many more.

6. Boost customer loyalty. It costs five times more to attract a new customer than to keep the existing client? Loyalty is a significant concept in the hospitality niche, so do your best to boost customer retention using big data services.

7 Sales forecasting. Another considerable benefit of big data is accurate sales forecasting. Using big data to forecast business will help you with all the details related to organisation and planning, so you never have to worry about unpleasant surprises.

8. Trend prediction. The eating habits of restaurant visitors can change over time, so it is essential to keep an eye on the latest trends in your niche. Big data actively listens to the target audience using multiple communication platforms to warn you about your clients’ coming trends and future needs on time.

9. Cost reduction. Big data can help to reduce operating costs in the long run. (Foster, 2019)

Restaurant management is getting increasingly complex because guests demand highly personalised experiences. The only way to solve the problem and boost your restaurant sales is by embracing big data technology. 

Author: Fiorella Orellana

Keywords used in this note:

#marketingforrestaurant

#bigdatainrestaurants

#digitalmarketing 

#howusebigdatainrestaurants

#strategiestoincreasesalesinrestaurant

#howtocollectinformationofbigdata

#whatisbigdata

References

Foster, T., 2019. The Rail. [Online]

Available at: https://www.therail.media/stories/2020/2/19/11-big-data-strategies-to-boost-your-restaurants-sales

[Accessed on: 21 March 2022].

SHARMA, T., 2019. Global tech council. [Online]

Available at: https://www.globaltechcouncil.org/big-data/5-ways-big-data-can-boost-restaurant-sales/

[Accessed on: 21 March 2022].