Whether you own a single location or a chain of restaurants, data analytics can transform how your company operates. Indeed, data is present in multiple aspects of restaurant workflows. From online orders to mobile apps and touchscreen kiosks, restaurants can collect and uncover valuable insights from this information.
You may be wondering what value such data has. With the right tools in place, data analytics in the restaurant industry can help you save on operational costs, offer better selections to customers, and make your marketing efforts yield better results.
This piece will cover how you can begin leveraging data- and the numerous benefits that come along with pursuing this approach.
How your Restaurant can turn data into an Asset
Many aspects of your daily operations may already yield data collection opportunities. For example, if your customers place orders online or using kiosks, you can aggregate this data and analyze it to uncover meal preferences. Furthermore, payment information can be used to learn more about pricing, margins, and demand.
Restaurants can also take data gathering a step further by installing sensors within the physical space. Sensors can be used to analyze customer seating patterns, employee productivity, and the efficiency of machines in the kitchen. You can also use sensors to implement the timely maintenance of equipment to avoid downtime.
Once the data is collected, you need a strategy for storing, processing, and analyzing this data. Some restaurants outsource their analytics workflows, while others access infrastructure from the cloud to carry out data mining. It helps to consult data science experts who can examine your current infrastructure and propose data processing workflows that yield the best results.
Benefits of Data Analytics for Restaurants
1. Leveraging Data Boosts Sales
In a highly competitive industry, keeping track of sales in real-time can help you make timely adjustments that improve your bottom line. Data analytics gives you better insights into how your products are performing. In this way, you can change a specific item on the menu, offer promotions, or reduce customer wait times to get the best out of a busy day. Real-time sales data is a valuable asset that keeps your Restaurant responsive to customer preferences.
2. Increasing Operational Efficiency
Data analytics makes it easier to keep track of key performance indicators during daily operations. For example, you can use sensors to uncover how many tables are empty in real-time or how long a meal takes to prepare. You can also use data from kiosks and online orders to calculate customer wait times and purchasing trends. This data is valuable in determining operational efficiency.
Using advanced software, you can correlate data to your KPIs and assess performance in real-time. You no longer have to wait until the end of the month to find out that a faulty machine was slowing down meal prep.
3. Smarter Marketing Techniques
Yielding optimal results from marketing can make a significant difference in your bottom line. Collecting and analyzing data from your Restaurant will help you keep track of customer preferences, market trends, and competitor activities. In this way, you can develop campaigns that address customer pain points and resonate with your target audience.
Data analytics is also a blueprint for designing automated campaigns and keeping track of performance in real-time.
4. Taking Advantage of your Location
Location is huge in the restaurant business. Whether you’re looking to open a new store or learn more about the local market, data analytics uncovers actionable insights. You can collect demographic data from the local population, market trends over the last few years, and customer preferences from competitor analyses. This is a blueprint for maximizing the performance of each restaurant and tailoring operations to the needs of your target audience.
5. Breathing Life into Menu Selections
Another benefit of data analytics is that you can use it to dig deeper into your daily operations. In other words, insights from such data can be used to turn a dull menu into a colourful asset that your customers will love. Data-driven insights allow you to find out which menu items sell, which ingredients are most popular, and which cooking style your customers love. Furthermore, you can categorize your menu in a manner that makes it easier for people to find what they enjoy eating. Giving your menu a new look, driven by data-backed insights, can make a significant difference to your bottom line.
Menus also impact multiple aspects of your operations. Whether you’re looking to get more online orders or encourage dine-in customers to order more items during a meal, menus are an asset that you can rely on.
6. Get more from Online Channels
Speaking of online orders, data analytics is critical for any e-commerce activity. Data regarding the source of traffic, purchasing history, and purchase amounts can be used to offer menu items that customers enjoy. Furthermore, you can streamline the payment process using insights from past transactions and customer feedback.
With a highly responsive website, ease of payment for customers, and reduced wait times, your e-commerce operations will be on the path towards meeting established revenue targets.