No, this isn’t the algorithm for our newest pricing study. And these aren’t the winning lottery numbers. Instead, these numbers represent an instructive snapshot of the restaurant industry, courtesy of the Florida Restaurant and Lodging Association’s Marketing and Operations Summit, which the RMS marketing team attended this year.
More specifically:
- 1 is the average percentage growth of the Florida restaurant industry. Nationally, the National Restaurant Association reported 1.4% growth last year, or 4% nominal growth. This moderate growth, projected about the same for 2019, could be disheartening for some, but brands can get a bigger bite out of this slightly shrinking pie if they recognize the future of the industry — delivery. Which brings us to our next number…
- 15-20 is the average percentage growth of the delivery industry — dynamic growth for a sector that was already worth $40B in 2018, according to Technomic. To take advantage, we concur with the experts, who recommend reengineering delivery menus to reflect highly profitable items that are in demand and represent your brand positively. This also includes looking at packaging to ensure food travels well and lives up to your brand promise when it’s being delivered by third-party drivers. And speaking of brand promise…
- 65-70% is the average proportion of revenue that comes from loyal customers. Those loyal customers bring us to our next number…
- 25. Though they make up nearly 70% of all revenue, loyal customers only represent 25% of your total customer base. That means now is the time to look at the lifetime value of a customer and invest in those high-value 25%. The expert’s tip? Take loyalty to the next level by going beyond personalization to curation. Technology allows us to meet loyal customers where they are and design experiences and promotions specifically to their needs and wants. RMS uses transaction-level data from your POS system to customize promotions, menus and pricing for loyal customers and to create menus and pricing specific to locations and regions. And speaking of technology…
- 2 is the number of new Google My Business features that benefit restaurateurs. Dish-covery, launched in September, uses customer-generated photos to highlight a restaurant’s most popular items on the menu through Google Maps, a big opportunity for brands to showcase their beloved menu items. A second feature — that we love — makes getting a restaurant reservation nearly frictionless. Google Assistant can now book a table for 2 (or 4, or any number!) by actually phoning the restaurant for its smartphone owner, using AI. And speaking of frictionless experiences for customers…
- 1 is where your customer should rank on your list of priorities, according to Steve Robinson, former Chick-fil-A CMO. Any good restaurateur recognizes that the guest comes first, but Robinson went further, encouraging attendees to make a conscious choice to focus on the relational value of your customer over the other KPIs listed on the operating plan. What your customer says and feels about you is more important than profits, clicks or even sales, according to Robinson.
Any way you slice it, those numbers add up to a better experience and better profitability for the restaurant industry. It’s all part of why, at RMS, we love numbers and what they can tell us about what you love — your customers.
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