To avoid a decline in profitability, a good marketing plan is essential. Small, independent restaurant owners should strengthen their competitive position and implement these marketing strategies to improve profitability and exceed competitors’ strategies and performance. The present customer base should not be considered enough.
Learning Consumer Expectations
The consumer expectation has changed significantly post COVID. It has changed from the lifestyle of consumers and the needs of people. The diverging sentiment of people is reflected in the spending intent across different boundaries. With the introduction of coronavirus, people are more concerned about their health. They have started taking care of their food diet and practices. The diet of the people has shifted from rice (the traditional food of Korea) to coffee and bread.
It was found out that for a successful restaurant firm, the small independent firms can look for these five marketing strategies. These are limited financial resources, blogging and using the point of sale system, product differentiation and atmosphere, word of mouth and social media marketing, and employee engagement and upselling. It was found out that the most useful and helpful strategies among these are the word of mouth and social media marketing. It can help small restaurant owners to retain and get new customers. It was also found out that marketing strategies and brand positioning are some unique characteristics of differentiation and atmosphere that influenced profitability and competitive advantage.
In earlier days, people used to find the look quaint and homely. However, with changing times, these restaurants are perceived to be lacking attractiveness and in need of new designing of the interior as well as the exterior. These old and outdated restaurants do not appeal to the customers to make them dine in the restaurants. Additionally, these restaurants have been serving the same menu for generations which does not pique the interest of the people. The atmosphere of a typical restaurant is unsophisticated, with a lingering and strong smell of roasting meat and smoke wafting from the kitchen to the entire restaurant. Many times, it proves to be overwhelming for the customers. All these reasons have an impact on why some restaurants do not fetch many customers. As a result, there is a decline in their profitability.
The main difference is caused due to the economic difference, which has lessened the purchasing power of most of the people. Consumers tend to focus more on essential and value things necessary to sustain everyday life. They are less likely to spend on entertainment, outings, and comforts. It is one of the reasons why the profitability of restaurants has decreased to such an extent. People worldwide are still at different stages of resuming their activities out of the home due to the fear of getting infected. With the second wave of coronavirus, which has caused more harm in Korea, this fear has increased to many people. Most people are less likely to engage in social activities and shared services; they only leave home for necessities. As restaurants are part of an outing activity and a source of entertainment to most people, the demand has gone down rapidly.