Digitization has taken over the world of business, restaurants included. In fact, restaurants collect valuable data every minute of every day.
A restaurant’s point of sale (POS) system stores reports about orders, payments, tips, deliveries, and wait times. Even small details like clients’ favorite extra ingredients are recorded. Online reviews are also available on the restaurant’s website and related sites, such as a food delivery service.
So, what should a restaurant owner like you do with all of this data? The short answer is to leverage restaurant analytics. Huge volumes of data become useless if they are not processed and analyzed to meet your business goals.
This article explains the meaning of restaurant analytics and how you can use it to boost your business.
What are restaurant analytics?
The food industry is characterized by cut-throat competition. New restaurants and food stalls regularly pop up on every street corner. This only means that getting ahead of competitors should be a priority for restaurateurs.
Traditionally, restaurant owners relied on observations and handwritten notes to record things like the number of dishes ordered, number of tables served, and customer reviews.
Enter restaurant analytics.
Simply put, restaurant analytics refer to all the data from your restaurant turned into insights that shape your business decisions. With today’s technology, it is possible to gather, measure, and present every piece of information from your restaurant in real-time. Insights from the data can then be used to design quick fixes and achieve success in the long run.
For example, knowing your customers’ preferred mode of payment can help you equip your restaurant with the proper tools, and your staff with the right training to ensure fast and accurate transactions.
How can you use analytics to improve your restaurant?
- Learn your customers’ preferences
While you were crafting your restaurant business plan, you’ve probably already thought about the audience you wanted to target. But after you open your business, how well do you actually know who dines at your place?
Data from your POS and CRM can help you create in-depth and up-to-date customer profiles, which you can use to make better decisions in your business. Restaurant design, menus, inventory, and prices are just some of the elements that you can decide better based on an accurate view of your customers' demographics.
Other specific details such as allergies or your patrons’ birthdays can also be helpful for personalization. A customized menu and a free cake can go a long way in establishing customer loyalty.