by Stan
Mack
Te you will have trouble standing out from the
crowd. Gaining a competitive edge requires a detailed analysis of the
demographics of the surrounding area and the nature of existing competitors.
And even if you are successful at first, new competitors could enter your
market at any time to steal your clients. Don’t hesitate to adopt successful
strategies from your competitors, but understand that directly competing with
an entrenched rival is a bad idea for a beginning restaurateur.
Step 1
Find an area with few competitors that serve food similar to yours. Pizza places,
for example, face enough competition from other types of restaurants without
having to fight each other.
Step 2
Che restaurant industry is highly competitive. Unless you have a star chef
or a novel cuisine, chances arhoose a highly visible location that has a suitable consumer base nearby.
For example, don’t open a family restaurant in an area full of office
complexes. A residential area with a high percentage of families with young
children would offer more potential clients, especially if there are relatively
few local restaurants currently serving that demographic.
Step 3
Analyze the local competition after you’ve chosen a location. Chances are
any region you choose will have at least a few competitors who target the same
consumers. Other restaurants are obvious rivals, but supermarkets, convenience
stores and any other businesses that sell prepared food are also competitors.
Step 4
Identify the strengths of each competitor. For example, a supermarket’s
ready-to-eat meals are
convenient for shoppers who are there to pick up
household items. Fine dining restaurants might have expert chefs who excel at
cooking in a particular style, making them difficult to beat. Fast food
restaurants offer quick service at low prices.
Step 5
Identify the weaknesses of each competitor. For example, a supermarket’s
ready-to-eat meals might taste stale after sitting for many hours, and fine
dining restaurants might be too expensive for some consumers. Fast food
restaurants offer the same products everywhere, so consumers might be ready for
something new.
Step 6
Choose a focus for your restaurant that takes into account the strengths
and weaknesses of your competitors. Your restaurant should deliver a service
that nearby competitors can’t match, such as novel foods, higher quality or
faster service. Offering lower prices than your competitors might attract
consumers, but don't compromise the quality of your food and service.
Step 7
Analyze new competitors immediately to identify potential drains on your
business. Adjust your restaurant to compensate for meaningful shifts in nearby
competition. For example, if a low-cost pizzeria opens near your Italian
restaurant, focus on your ability to produce high-quality entrees in addition
to pizza to maintain your competitive edge.
