Restaurant in Up Market- PA PA YA
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The document provides an overview of the Indian restaurants and food service industry's market value, highlighting that it was approximately four trillion Indian rupees in 2019, with casual dining restaurants holding the largest market share. It discusses effective customer acquisition and retention strategies, emphasizing the importance of retaining customers due to lower costs compared to acquiring new ones, and suggests utilizing online channels and targeted marketing. Additionally, it outlines five key strategies for restaurants to enhance customer engagement and increase revenue through improved online presence and loyalty initiatives.
Restaurant in Up Market- PA PA YA
- 1. Customer Acquisition & Retention
- 2. Industry Overview 1.6 2.5 4.1 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Organized segment Unorganized segment Total MarketvalueintrillionIndianrupees Market value of restaurants and food service industry in India in financial year 2019, by segment (in trillion Indian rupees) Market segmentation of the organized restaurants and food service industry across India in financial year 2019, by type 52% 1.70% 7.40% 10.60% 6% 19.70% 2.60% Casual dining restaurants Fine dining restaurants Restaurants in hotels Pubs, clubs, bars & lounges Cafes Quick service rstaurants Ice cream, frozen desserts
- 3. • The market value of the Indian restaurants and food service industry was about four trillion Indian rupees as of fiscal year 2019. • In the organized market of the Indian restaurants and food service industry, the casual dining restaurant market accounted for the largest share of about 52.1 percent as of the fiscal year 2019 • In 2014, the market value of standalone fine dining restaurants or FDRs amounted to about 18 billion Indian rupees. • The market value was estimated to gradually increase through the years, reaching close to 30 billion Indian rupees in 2020. Average customer activity over the year Customers By Promotion
- 4. The Restaurant • Modern Asian bistro & tapas bar from the House of Massive Restaurants and best described as a chic, modern and radical reinterpretation of Asian cuisine. • Pa Pa Ya is an assimilation of various cooking techniques and cultures found across the Asian continent. • Use of the latest innovations & technology used in molecular gastronomy. • The menu devised is completely original, developed over several months of research, with painstaking attention to detail, creating unique flavour profiles for each dish served. • The Tapas style food presents a unique ability for the diners to enjoy a vast range of dishes in the right portion size, creating a true sensory dining experience. • This USP attracts various food connoisseur willing to experience authentic Asian cuisine.
- 7. Then What, How? Not the Best Way, Right!
- 8. Customer Acquisition • A number of tactics and strategies can be tailored for that perfect marketing campaign, but without a steady stream of customer everything would collapse. • Customer acquisition is there to focus on the fundamentals of how food businesses can set up a repeated system that attracts and retains customers-particularly online. • Over the long run, customer acquisition approach for restaurants is a sustainable ways • Customer retention refers to strategies restaurants use to grow repeat business. Put simply, it’s how they keep customers coming back. • Good food and great service are one thing, but with 50,000 Indian restaurants to choose from, customers need more reason than that to keep dining with you. • Did you know that acquiring new customers costs five times more than keeping existing ones? • For that reason, it’s wise to focus on restaurant customer retention. What can you do each and every shift to maximize customer satisfaction? • Happy customers are a restaurant’s most potent form of marketing because they do a lot of the work for you: suggesting your establishment to friends and family, writing stellar online reviews and sharing content on social media platforms. • In fact, existing customers spend 67% more than new ones. Customer Retention
- 9. Customer Analytics for Restaurant Industry
- 10. Average Order By New & Repeat Customers Orders Distribution By Daytime Orders Distribution By Weekday Customer Lifetime Value (CLV)
- 11. Average Cost Of Customer Acquisition Average Margin By Segment Average Frequency By Segment Average Order By Segment
- 12. Segmentation by Customer DemographicsSegmentation-New/Repeat-Customers
- 13. FIVE Customer Acquisition Strategies for Restaurants 1. Use Your Website to Get More Customers • Third party reservation platforms like google business and social media provide easy solutions but are limited and may charge commissions • But having a website gives flexibility and control branding, message and data • Helps establish connection with guests • In the world of online reviews and UGC, having a website can differentiate • Direct reservations means cheaper acquisition costs • Does it provide real time table availability? • Can guests add preferences or special requests? • Does it automatically import customer data? • Is it easy to install and set-up? • Is it mobile optimized? • Does it send automatic guest confirmations? • Can you add cancellation policies? • Does offer PCI compliant credit card hold? How to choose a reservation widget
- 14. 2. Find What Drives the Most Incremental Bookings • Helps understanding which channels are working best from a cost perspective • online reservation strategy should also consider other online channels like social media and yes, 3rd party reservation platforms Social Media: • Social media platforms now provide a way to put your booking links into your profile. With this in place you can assess the impact of your social media efforts. • Experiment with different types and amount social media posts and see if it materially impacts your bookings. • You can then compare the revenue generated against the salary or costs of producing your social media content. 3rd Party Booking Platforms: • One of the main benefits of 3rd party platforms is their ability to drive incremental bookings. • One of the most efficient ways of spending a marketing budget. Ex- Take the number of covers generated from a 3rd party platform and calculate the revenue of these covers. 400 covers @ $50 revenue per cover = $20,000. At $1.5 commission per cover = $600 commission costs. $20,000/$600 = 33X ROI multiple. • 3rd party booking platform generated 33 times more revenue than was spent on marketing. • Compared to traditional advertising its much more powerful.
- 15. 3. Focus on Google as a Direct Revenue Driver Google owns two services which together are the most powerful restaurant customer acquisition channel • Google Business – your Google restaurant profile that appears in search results • Google Maps – location-based search engine that recommends restaurants using GPS • Reserve with Google A feature that lets diners book directly at your restaurant without ever leaving the search results page. It’s the fastest & no direct way for customers to reserve a table How to Optimize Google Business • Follow best practices for setting up profile. Add hours, images, website links • Maintain a high rating on Google Reviews. Google Maps shows top restaurants by reviews by default • Turn and reply to customer messages • Try little known features like posts and events • According to Think by Google, “people are at least twice as likely to use search than other online or offline sources …Not only is search the most used resource, it’s the resource 87% of people turn to first.”
- 16. 4. Better Targeting Brings Better Results Improving targeting often has the biggest impact on customer acquisition because you are not wasting money on reaching people who will never convert • Targeting is not just about choosing audiences in Facebook Ads, it applies to all customer acquisition channels. • For restaurants, Facebook Ads can often be a poor way to target your potential customers. Would you book a table at a restaurant whilst flicking through your feed at the grocery store? • Restaurants should consider the ways people discover and commit to visiting a restaurant. Often this will begin with a Google search. • Optimizing your web presence is extremely important. • If you are running digital ads, targeting will of course also be very important. • On Facebook look at geo targeting and also time of day/week as important targeting options and also start investing in retargeting as an efficient ad strategy. What’s the message? • Targeting is not just about channels, it’s also about how you are delivering your message. • Branding and communication are also a big part of effective targeting. By creating content, ads and messages targeted to your audience you are increasing the likelihood of attracting loyal customers.
- 17. Powerful marketing Use customer segmentation, flexible data export and in-built email marketing tools to send targeted campaigns. Revenue focused digital menu Setup your beautifully designed digital menu and add modifiers, upsells and preferences to maximize revenue from your menu. Stay reactive and quickly update menu options from a single dashboard.
- 18. 5. The Best Customers are Loyal Customers • In the world of customer acquisition, “retention” is considered the gold standard. • Across industries a repeat customer will spend more and also costs less in marketing spend. • If you are only focused on getting new customers, instead of encouraging people to return, you likely have a customer acquisition cost that is higher than it should be. Loyalty of course is related to the 1st experience but you shouldn’t rely on this alone. Proactively putting in place customer retention strategies will compound any other customer acquisition activities. CRM Technology: • Emailing people who have upcoming birthdays is one of the most powerful CRM strategies. But it doesn’t stop there. Modern CRM systems allow you to segment and message your 1st time customers with offers and updates.
- 19. Some other ways: • Best customers from the previous day or week (along with # of total of visits, spend, tip %, favorite menu items, and more) • Occupancy details by the hour • Social media and reviews monitoring • Most profitable items • Returns by server • Campaign success (i.e., restaurant week, game nights, seasonal promotions) Loyalty programs: • Official loyalty programs don’t work for every restaurant type but for many they are great way to kickstart retention strategies. Even with the discount added, a good loyalty program will have a great customer acquisition cost.