It used to be that a restaurant could be packed all the time even if its food and service were just OK.
Not anymore.
This example turns out to be a permanent change in our industry, and the sooner you accept that the days of punch-card loyalty programs, dried flower arrangements, and old consumer behaviors have ended, the sooner you create better results for your restaurant.
Keep that in mind as you plan for 2025 and beyond.
The 3 Biggest Permanent Consumer Changes
- Rising consumer confidence benefits other segments of the economy more than ours.
- Guests like to eat your food at home even after it travels there.
- Customers have a new idea of what value means, and it has very little to do with price.
This week, I will tell you about the first change. Over the next two weeks, I will address the other two.
At the Bottom of the Table
Boston Consulting Group and others rank dining in the lowest category of consumer confidence in terms of willingness to spend more – or desire to spend less.
Ouch! That gut-punch really hurt.
Leisure travel (optional), insurance (not optional), and mobile services rank as the most resilient sectors. When you fly on a plane or see your homeowner’s insurance bill, you understand.
Too many restaurants are doing what they have always done, at sticker-shock prices that can’t be explained away no matter how much wages have gone up.
Instead, smart operators differentiate themselves with value.
What We Do Now
This time, as things continue to improve in the economy, and as consumer confidence continues to rise, economic indicators will not bail you out.
The only thing that will remain are the fantastic experiences you provide your guests. Making permanent positive change depends on adjusting to how people use restaurants now.
How you respond to today’s reality will drive brand performance in coming years.
My clients and I overhaul menus, boost service levels, and re-focus branding and messaging.
When we do, negative year over year comps – and also flat same-store sales – become positive.
Someone is going to win. My wish for you? Be one of those winners. Don’t freeze in inactivity; instead, show up as fearless.
If you have not been in action, the time to start building value must be now. The place to start? Be honest about where and how you must improve.
