The Nature of the Business
Any restaurant entrepreneur with a modicum of success can tell you that where there is a track record of accomplishment and prosperity, in the beginning there was an intimidating level of risk and apprehension. Few have ever undertaken the opening of a place without having doubt regarding future financial solvency (or that of the investors with proverbial skin in the game).
There is also the case of those owners who run multiple restaurant locations that are booming. It is easy to become complacent and not dedicate the time and effort in hunting down inefficiencies and zeroing in on areas for improvement as would an owner of a more modest establishment with one location. Regardless, in this challenging business, any food and beverage enterprise can turn on a dime and head downhill regardless of the size of the operation and prior success. The restaurant and bar business is notoriously at the mercy of a capricious and often unforgiving public.
If you are running a new and/or expanding concern, you may be asking yourself what step to take next that won’t lead you off a fiscal cliff. The choices made in answering such a question can make the difference between prosperity and, quite frankly, insolvency.
Keeping Your Head above Water
To be viable these days, one must be well informed and up-to-speed on all the various tools that are available in this age of advanced technological solutions. It is especially imperative for those in the food service business to take advantage of it all so as to stay in said business.
An example is how restaurant owners are exploiting location intelligence to keep ahead of the curve and to identify actions to stay competitive. Exploring potential outcomes not only can lead to the most effective of choices but can greatly reduce risk and, consequently, the already stratospheric stress levels of the typical restaurant owner.
It is a truism, (but nevertheless important to keep in mind), that a solid majority of restaurants will fail within the first year of being open. Interestingly, the number one cause for failure has to do with one’s location. Location intelligence, fittingly, is what can significantly reduce the risks associated with this aspect.
What is Location Intelligence?
Location intelligence is a form of artificial intelligence (AI); it puts together all the accumulated data from an individual business and reveals context by showing how it relates in the bigger picture of the food and beverage service sector. All variables are examined and conclusions can then be drawn by how it all relates to each location. It exploits a myriad of complex methods of analysis to help in intelligently predicting the effects of regional competitors on your business. And, as is part and parcel to the very definition of AI, these kinds of software programs are always learning. This software can predict how well you might do at each and every potential location. It provides a heretofore unmatched level of confidence in one’s informed decision making.
How It Helps
The truth of that matter is we humans are prone to error; going with our “gut” or by past experience can lead to disaster. Utilizing the many forms of these surprisingly effective and relatively inexpensive software tools can ameliorate our tendencies to “screw up” and instead instill confidence that the right decisions are being made.
This technology offers a wealth of tools that can deliver a snapshot of precisely who your customers are, no matter where you may be operating now or might choose to operate in the future. It all unleashes the ability to more effectively reach your target demo and to better judge how well various forms of advertising and publicity can work, especially in the realm of social media. All of this hinges upon how accurately you are able to identify your most relevant target consumers- Location intelligence is the key.
After acquiring all the data and the many specific results of analysis, you can further put to work location intelligence for a whole host of uses, such as inventory allocation. For instance, depending on where a restaurant may be located and the kind of customers generally served, menu offerings can be crafted to better reflect the ages and cultural preferences of the clientele, which leads to more sales and less waste.
Artificial intelligence remains in the background to allow you and your staff to do what you do best, namely provide the human touch. Your star bartender turns on the charm while your software works behind the scenes ensuring the highest efficiencies of your operations. Ultimately it’s all about the bottom line and location intelligence can help to keep it healthy.