This is part 3 of our Resto Trends 2021 series. Check out previous episodes here:
2021 restaurant trends-food, marketing and commerce
2020 is a very different year from our expectations. Whether you are in a pandemic or just out of a pandemic, what are the trends in food, marketing, business, and leasing for your restaurant in 2021.
How will 2021 affect the location of your restaurant? There is an absolute retail end. Many companies have moved their businesses online, just like restaurants have done, and people’s consumption patterns have undergone major changes. Many businesses have closed down in the retail sector, making shopping malls look for tenants to enter these spaces. The rental price dropped significantly.
We are also seeing more and more people working from home. Compared with restaurants in the CBD, restaurants in the suburbs do better. Due to the flexibility of the office to allow employees to work from home, we expect the traffic of restaurants located in the CBD to decrease. This will depress lease prices to a large extent.
People are now more interested in alternative spaces in restaurants. The restaurant operators predicted how severe the pandemic would hit them. They closed the restaurant and went into a dormant state. When they come out from the other side, they still have some money and can still choose how to structure their property costs.
There is a little trade war going on. In Australia, we cannot export large amounts of products to certain countries, especially wine and seafood. There is currently a considerable crisis in the lobster market, which is why we now hope to buy really cheap lobsters. This has caused a huge emotional change, and we see people wanting to support local suppliers or companies.
Comfort food will be one of the items you should rotate in the specials. Test them in your menu just to see what kind of traction they can get. Comfort foods are defined as foods that provide a sense of comfort, usually with high sugar or carbohydrate content, and are usually associated with childhood or family cooking.
Another thing to consider is that one person’s comfort food may be another person’s exotic food. For example, if you run an Indian restaurant, the comfort food you will prepare may be the food that your mother would normally cook in India. You want to be different, and you want to make people excited about your menus, which are not always available. You will look for food in the market that is a bit too low to actually put on your menu, but this is a lot of things moms do for kids. You can campaign against foreigners from India, which may be successful.
There is another side to comfort food, which is when you target it to people in your country. In Australia, many people like Indian food, but they have never tried this kind of food. For adventurous food lovers, this is a great opportunity. They may try it and see what is going on.
We now have more choices. Whether it is a person entering the market for the first time, they will have a different idea of operating a business compared to opening a restaurant two years ago. For hibernating restaurant owners, they may be different. They bring some resources out and plan to think about how to turn and how to rebound within 9 months of their closure. Then you will see the people who have really achieved some kind of survival in the past few months. They are strong business owners. They are very shrewd and agile in the way they run their business.
Some restaurants are investing in tablet computers as a labor-saving device to minimize front desk labor costs, just like robots. These labor-saving devices will enter more and more business models.
One of the formulas we use for our customers is very basic, but it does resonate with restaurant owners.
The potential customers of these potential customers X conversion rate = your number of customers
The number of customers X multiplied by the average sales you get, and then multiplied by the average number of transactions per customer, to get you = income
Revenue x profit rate = profit
You want to start making business decisions that will allow you to influence each of these numbers, because if you can increase at least 10% in each area, it will have a huge impact on your profits.
Listening to the podcast, we will delve into each field.
Make the most of our Free restaurant website audit Improve your website, avoid wrong practices, and attract more online sales. Arrange a 15-minute free chat with our helpful team to start the new year in the right way.