According to a recent research survey by ‘On The Line’, 45 percent of people today go out to eat multiple times during a week, with another 20 percent going out at least once a week. The rise of the nuclear family structure in India is adding to the convenience of going out to eat as a fun activity that everyone enjoys. Cafe’s have popped up everywhere today in Indian cities capitalizing on this clientele. Quoting from Rahul Singh, India president of National Restaurant Association, “Restaurant business in India is the largest service sector in India after retail and insurance and is 20 times of the film industry, 4.7 times of hotels and 1.5 times of the pharmaceutical sector.” The business was estimated to be Rs. 5,00,000 crore in 2021 and has been growing at the compounding rate of 10 percent each year.
The scale of restaurant business in India is huge, and repeat customers form the backbone of the business. The product of a business like a restaurant is geographic i.e. a restaurant can cater to a localized population of a certain area, and in a business like this building customer retention and consistent repeat customers is what guarantees long term success and growth. As per a study by BIA/Kensley, a repeat customer spends 67 percent more than a new customer as the trust in the brand of the restaurant is already present in a repeat customer, whereas with a new customer it might take a few orders before they have the same level of trust as a repeat customer.
“Restaurant business in India is the largest service sector in India after retail and insurance and is 20 times of the film industry,4.7 times of hotels and 1.5 times of the pharmaceutical sector.”
Customer retention is the key to a successful
A major issue that many Indian restaurants face today is centered around customer retention and having a repeating clientele. The CRM system, as useful as it is, is not equipped to compete in a world dominated by data and technology. FRAGO gathers data around each customer’s spending and how often they visit your restaurant. This consistent data over time will help the restaurant understand the behavior pattern of the customer and what would be the best time to reach out to them.
A research conducted by ReedSeed Management’s found out that most people preferred dine-in, followed by delivery and the spend on takeaway was the least. This research points at a clear trend in Indian customer’s way of perceiving a restaurant business, they look at it as an experience and hence most spend per customer happens when they Dine-In, as shown by the research data. Personalized messages are a great way to approach customers who wish for an experience when they think about restaurants. Tailoring the outreach as per the customer’s profile and buying habit will add to their experience and establish a stronger relationship between them and the restaurant. This relationship and personalized approach will help increase customer retention crucial to a restaurant business.
Personalized messages boosts customer
Inventory planning and ordering raw materials are a key pain point for the restaurant businesses. A restaurant deals with a large amount of perishable produce (vegetables and fruits, meats and eggs) which can go stale in a short amount of time. Once FRAGO’s AI gathers data around what the customer’s are ordering from the restaurant on a consistent basis (customer buying pattern), the restaurant will have a strong idea of the inventory they would need. Small changes in the buying patterns can be tracked and the inventory can be planned around it. This data driven approach to inventory planning will reduce the amount of raw food that is wasted and will add to a restaurant’s profit margins.
Once frago’s AI gathers data around what the customer’s are ordering from the restaurant on a consistent basis (customer buying pattern), the restaurant will have a strong idea of the inventory they would need.
Data informed inventory planning and cross
selling bundles with Frago
A similar customer buying pattern data can be used to build informed upselling and cross selling bundles that appeal to your customers. Cross selling bundles has helped restaurants sell more products and with better margins. Tailoring these bundles to your customer’s preferences will benefit both in generating more product sales and the profit from each customer. FRAGO will consistently track the customer’s buying pattern and hence seasonal or monthly buying trends can be identified. Cross selling and upselling bundles can then be planned and tweaked around these monthly or seasonal changes, helping the restaurant form data driven decisions around such bundles well in advance.
Frago’s conversational AI will inform customers
on new launches better
Restaurant business is a business driven by change. Introducing new dishes to the menu and improving upon the under performing ones is a constant process. Updating services or the look and feel of the restaurant consistently is critical too. Staying relevant and still true to the spirit of the restaurant can be a difficult job and informing every past customer about such changes can be even more difficult. FRAGO can run campaigns with conversational AI which can inform and track the customer’s reaction to the said changes. A restaurant can choose between a video message, or a text based communication. This can not just inform a customer about the changes made but also get them excited to check them out.
Understanding your customer, what they buy, how they spend, how often they spend and what they spend on are crucial to understand to run your restaurant holistically. Informed and personalized communications with your customers will form lasting relationships and increase your customer retention. FRAGO’s AI and data analysis will help your restaurant make these crucial decisions with concise data at your fingertips. Data is the future and FRAGO is here to help your restaurant step into this data driven future with ease.