Mitigating the Challenges of an Unforgiving Industry: A Strategic Guide for Restauranteurs
It’s no secret that the restaurant industry has gone through some incredibly tough times over the last few years, with many of our favorite independent places closing their doors. Rising costs, staffing shortages, and changing customer habits have all played a part. Owning and operating a restaurant (or any business for that matter) nowadays requires much more than announcing you’re open, flipping on the lights, and hoping for the best. Along with a strong business plan, it's essential to have a comprehensive brand strategy in place.
OK… What the $%?* is a brand strategy?
In essence, brand strategy is the roadmap that guides a business toward achieving its goals by defining its unique identity, values, and messaging, and ensuring that all aspects of the business align with this vision. It's about creating a lasting impression and building a strong connection with customers. It’s made up of your brand identity (logo, colors, fonts, personality, etc.), brand messaging (values, mission, tone of voice), brand positioning (target market, competitive advantage), and brand experience (customer service, physical environment, marketing, etc.). These elements work together to create a cohesive and memorable impression of your business. Sounds kind of important, right?
When developing your restaurant concept, you need to ask yourself the following questions:
What is your unique selling proposition (USP)? What sets your restaurant apart from the competition? Is it your cuisine, atmosphere, service, or something else?
Who is your target audience? Identify the specific demographic or psychographic profile of the people you want to attract. Understanding your target audience will help you tailor your concept to their preferences.
What is your brand identity? How do you want your restaurant to be perceived? What are your values, mission, and personality?
What is your dining experience? Consider the atmosphere, ambiance, and overall experience you want to create for your customers.
What is your menu concept? Determine the type of cuisine you will serve and the menu style (à la carte, prix fixe, etc.).
What is your pricing strategy? How will you price your menu items to align with your target audience and profit goals?
What is your operational model? Decide whether you will be a full-service restaurant, quick-service restaurant, or something in between.
What is your financial plan? Outline your startup costs, projected revenue, and profit margins in detail.
A handful of local restaurants that have clearly invested in their brand strategy include Louie, Yellowbelly, Strange Donuts, ‘Ssippi, Little Fox, and Golden Hoosier. There’s a good reason why they’re so popular…
Sure, some restaurants have gotten away with “building the plane while it’s flying,” but do you really want to risk that? Especially now?
Which restaurants come to mind when you’re deciding where to eat on a Saturday night? Why do you think that is? The food is obviously something to consider, but what about the rest of the equation? If you’re anything like me, you're willing to sacrifice some level of quality, creativity, and presentation for the atmosphere, consistency, customer service, or value. My point being, your restaurant needs to offer more than just a meal. Dining out is a luxury for many people, and there’s a level of expectation that needs to be fulfilled if you want them to come back.
Ready to explore YOUR brand strategy and develop the elements that will help your business stand out in the crowded restaurant market? Let's work together to create a memorable and successful brand.
tl;dr: A well-defined brand can help restaurants attract the right customers, build loyalty, and differentiate themselves from competitors.
