Keeping customers hungry for more

Restaurants that prioritise innovation will be well positioned to prosper in the changing 2024 market environment, says Samina Hussain-Letch of Square UK

In 2023, small businesses worldwide faced a number of stark challenges. Despite the doom and gloom of the previous year, the future for SMEs is not so bleak. Following a recent American Express and Small Business Saturday survey of 1,000 SMEs, entrepreneurs in this space are keen for innovation, with a quarter (25%) wanting to diversify their product range or services, and a fifth (20%) interested in investing in new technology to streamline offerings.

Square’s 2024 research, ‘The Future of Commerce’ highlights numerous reasons for SMEs to be optimistic for the year ahead. It reveals UK businesses are set to experience significant growth in 2024, with restaurant owners leading the way. The majority of restaurateurs (89%) are planning to broaden their business offerings through new technology like automated systems or new menu items, showcasing their desire to keep pace with consumer expectations and becoming more than
just a traditional restaurant.

Restaurateurs intend to be measured and considered in how they broaden their offerings, as they reflect on where they’ve seen success before, and learn from decisions that weren’t so successful. UK restaurant owners are less likely than global merchants to introduce merchandise or other non-food offerings, with just over a quarter (27%) planning to do so, vs 34% globally. This is likely due to the fact only 40% of UK diners purchased these items in 2023.

This need to innovate comes as consumers plan to pull back on restaurant spending this year, with under half (43%) predicting they’ll order less takeaways this year. While this is likely due to cost of living pressures, it does mean restaurateurs need to invest in more efficient ways to find and engage customers to see return on their investments. So what can restaurants do, other than serve the best food, to keep customers coming back for more?

Encouraging repeat customers

There is no doubt consumers flock to eateries that are doing something “new” and “different”. While doing something out of the ordinary may draw attention from consumers, their attention is fleeting until the new hot place in town catches their eye.

As a result, restaurateurs are often trapped in a cycle of looking at what their competitors are offering and doing something similar. Instead of copying competitors, restaurant owners should consider how they can encourage repeat customers, while catching the attention of new diners.

Digital technologies provide a solution to offer a slick service, helping to meet and exceed customers’ increasing expectations of service and efficiency. Restaurateurs should consider the following ideas, in the mission to keep diners coming back time after time:

Improvement of systems and operations – Investing in technology to streamline restaurant operations can lead to increased efficiency, reduced costs, and improved customer satisfaction. This may include implementing a point-of-sale system, kitchen automation, inventory management software, and reservation management systems. By optimising systems and processes, restaurants can enhance overall productivity and profitability.

Direct-to-consumer growth – Direct-to-consumer growth refers to selling products directly to customers without relying on third-party retailers or intermediaries. For restaurants, this can involve offering take-out and delivery services through their own website or mobile app, rather than solely relying on food delivery platforms.

A return of in-person experiences – Restaurants can capitalise on the return of in-person experiences. This involves creating a welcoming and enjoyable atmosphere for diners, focusing on exceptional customer service, and offering unique dining experiences that cannot be replicated at home.

Building a social media presence – Social media has become an essential tool for restaurants to connect with customers, showcase their offerings, and build brand awareness. By actively engaging with followers, sharing visually appealing content, and leveraging user-generated content, restaurants can effectively market themselves to a wider audience. Additionally, social media platforms offer opportunities for restaurants to run targeted advertising campaigns, promote special events or promotions, and solicit feedback from customers.

Why technology plays a major role

While looking at how restaurants can drive growth and deal with competition in the market, another crucial aspect to use in their growth strategies is technology. Consumers are looking for a tech-forward approach from eateries – and with less than half (45%) of restaurants offering online ordering, business owners are excluding a huge market from their potential customer base. In addition, global diners welcome new technologies, with over three quarters (76%) welcoming restaurants to implement automated systems if they are low on staff.

With automated systems, restaurants and eateries can increase efficiency, improve cost savings and boost the overall customer experience. The economical opportunities that come with technology investment are there for businesses to take – it’s up to them to jump on them.

Technology is essential, and digital solutions improve customer interaction and operations. Restaurants that prioritise innovation will be well-positioned to prosper in the changing 2024 market environment.