Transformation is not something we do to our clients. Rather, it is a shared journey - a challenging and ambitious venture with a mutual goal: dramatic improvements in financial and operating performance

How to Gain Competitive Advantage in the Restaurant Business




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.


contact us : hostformail@gmail.com or hostplus45@yahoo.com

Popular Posts



our role is not over until you realize the desired business results