Market research for a new restaurant is important for restaurateurs to assess if there is sufficient demand for a new restaurant or a certain type of restaurant to open up in their locations of preference.
There are two popular methods to conduct this type of research:
- Using Primary Resources for Restaurant Market Research
- Using Secondary Resources for Restaurant Market Research
Using Primary Resources for Restaurant Market Research
Listed here are three different ways to conduct market research through primary resources.
- Competitive assessments
The competitive assessment, also called a competitor analysis, entails a restaurant assessing its competition and seeing how they are performing. This enables new restaurants to understand how they can fill up gaps in the market they aim to serve.
- Focus groups
Focus groups help restaurant owners understand and connect with their target customers. They can get in the audience by offering free menu testing. They can also call in bloggers and Instagram influencers to give feedback and review their business.
- Online Surveys
Another primary resource for market research is an online survey. Free websites such as Google Surveys allow restaurant owners to do surveys among their customers without burning cash. It helps restaurateurs gain valuable feedback from their target audience.
Using Secondary Resources for Restaurant Market Research
Listed below are three different ways to conduct market research through secondary resources.
- Case Studies:
Case studies can provide detailed knowledge about specific restaurants and their concepts and the effects of different strategies on consumer behavior.
- Statistics Sites
Statistics sites provide vital information about restaurants and their demands, or demands of restaurants pushed by their locations and cuisines. These sites provide information on customers and the myriad reasons behind their restaurant preferences.
- Research Papers:
Through research papers, restaurateurs can learn about ways to maximize their revenue. Research papers provide insight into different marketing strategies and their effectiveness. Research papers are readily available on the internet, and they can help restaurant owners understand their businesses in much better ways.
Starting a new business can be scary, but if you are armed with an abundance of knowledge before you start something new, the chances of success become infinitely higher. Market research helps new businesses strategically overcome challenges and keep the odds in their favor.