restaurant trends & insights 2015

Transcription

1 restaurant trends & insights 2015

2 objectives Understand growth strategies in the restaurant business Define the common merchant challenges and needs (addressed/non-addressed) Understand marketing mix including changing focus on traditional and digital/social Identify key trends in the restaurant business Identify industry resources and influencers affecting marketing decisions Determine merchant consideration/intent drivers and barriers with recommended actions methodology The qualitative portion of the research consisted of phone interviews with 30 restaurant owners/managers in December 2014 and January 2015 In January 2015, a survey of 150 restaurant owners/managers was conducted to confirm and quantify the research results

3 restaurateurs face many challenges in and out of their control top restaurant business challenges (% yes; select all that apply) 75% 74% 54% Restaurant owners are facing many diverse challenges within the business environment while having limited resources for marketing and promotions gaining new customers rising food prices increased local competition top restaurant marketing challenges (% yes; select all that apply) 3/4 feel that new customer acquisition and rising food prices are major challenges in their business, while more than half find that competition from local businesses is an issue they face 68% limited marketing budget 49% tracking results and ROI 36% managing online customer reviews 68% see a limited budget for marketing and promotions as a challenge and nearly 50% encounter issues tracking the ROI for the marketing investments that they make

4 deal sites, social media & marketing are the most successful channels successful marketing channels for driving sales 18% 78% 23% 71% overall successful channel most successful channel 20% 61% Of those that use deal sites, nearly 80% think that they are successful, with 18% stating that they are the most successful in driving sales 23% and 20% of owners felt that social media and marketing, respectively, were each the most successful marketing vehicles in driving sales online deal sites social media marketing

5 restaurateurs find that multiple promotions are successful in driving sales successful promotion types in driving sales 36% 75% 75% 77% 74% $ savings - min spend required 16% 13% 12% free food item with purchase $ savins - no min spend required overall successful type of promotion most successful type of promotion % off bill - min spend required Offering a dollar savings with a minimum spend requirement is most successful in meeting both goals Most promotions have about a 75% success rate overall 36% find dollar savings with a minimum spend requirement to be the most successful type of promotion to offer

6 deal sites and social media are the most popular channels for online marketing types of online promotions outside of social media 77% (% yes; select all that apply) 44% 24% Those that offer promotions outside of social media, do so more frequently on deal sites than on their website promotions on deal sites promotions on restaurant website online ad promotions frequency of offering deal site promotions 77% have posted a promotion on a deal site and 44% posted promotions on their website Deal sites are most commonly used 2-4 times per year 17% 22% once a year 2-4 times per year 61% 5 or more times per year

7 most restaurateurs allocate more marketing funds to off-peak seasons times of year restaurateurs spend more on marketing 64% (% yes; select all that apply) 55% of owners spend their marketing budget differently based on the time of year, with most amplifying during the off-peak season during off-peak seasons 23% during peak seasons 23% during the holiday season Of those who spend differently, nearly 2/3 allocate more fund to offpeak seasons, while 23% spend more during the peak season and an equal number spend more during the holiday season

8 most restaurant owners spend up to 25% of their marketing budget during the holidays percent of marketing funds spent during the holidays 4% 2% 0-25% 19% 26-50% 51-75% 75% % top channels used for holiday marketing (% yes; select all that apply) 68% 57% 41% 36% 75% of owners spend up to 25% of their marketing budgets during the holidays The most common promotion type is a dollar savings with a minimum send, offered by 46% of restaurant owners during the holiday season As with other times of the year, Facebook and the restaurant s website are the most common channels to market during the holidays facebook restaurant website marketing local print

9 loyalty programs are somewhat successful for restaurateurs that offer them to consumers presence of a loyalty program for the restaurant 33% 67% yes no success of loyalty program in driving sales & repeat business 5% 5% extremely successful While only 1/3 of restaurateurs have a loyalty program in place, more than half see it as somewhat successful to driving sales and repeat business Points-based loyalty programs are the most commonly used where points are accrued for visits or dollars spent and then can be redeemed for future food bill discounts 23% 10% 57% somewhat successful neither successful nor unsuccessful somewhat unsuccessful extremely unsuccessful

10 For more information, visit livingsocial.com/press or merchant.livingsocial.com