I have always been extremely passionate about the Restaurant industry. This fascination has resulted in numerous plans with my mother to open an organic restaurant at the farm, blueprints of gourmet cafes, conversations with my restaurateur best friend about exciting opportunities and conversations with legal forces about certifications, health and hygiene rules. It’s a real dream.
Just this morning, I was speaking to a close friend about the number of new restaurants in Mumbai. Apparently, today there are 100,000 restaurants in the state of Maharashtra. Well, this conversation was mainly because I am from Mumbai but even if we look at this holistically from a Global angle, the restaurant business is booming.
In my opinion this is because of 2 factors:
  1. The Foodie Culture is Pop Culture – It’s true, the millennials are obsessed with food(sometimes unhealthily). It’s a part of pop culture and is also greatly attached to one’s social persona. Social Media has made it crazier with the check-ins, reviews and food blogs. Earlier, the only reason to go to a new restaurant and try something was to satisfy your hunger and for the experience of the food and ambience. Today, it’s that too, but on top of that there is another angle of social standing attached to it. There are lengthy discussions about, “Have you tried supercalifragilistic restaurant?”, “Oh my god! Are you serious?”, “They have the best expialidocious in the world!” I’m a victim too. According to statistics from Wired, There are more than 200 million pictures tagged #food on Instagram. 20% of these are dishonest and are only based on the way the food looks. There are full time food bloggers out there who are making hundreds and thousands of dollars by writing reviews. Yelp made 469 Million dollars in 2015 and Zomato made a 100 crore in 2015. In the US the restaurant industry is expected to reach $783 billion in 2016. It’s an epidemic.
  2. Urbanization, Digitization and Globalization – The world is more employed, more urban and more connected today. There is more dispensable income, there is a lot of priority given to ‘experience’ sometimes more than ‘ownership’ and there are lots of options. 82% of Americans now live in cities, almost double of what it was 100 years ago. This has provided them options. While a lot of businesses have not survived due to digitization, the restaurant business has bloomed to its fullest potential because of it. Come on, we can’t eat internet or order a virtual portion of tiramisu. In fact, digitization has spread the word, created an hierarchy and provided information.
This got me thinking about marketing for the Restaurant industry.Well, the industry as a whole is flourishing but what does that mean for individual restaurants. With the amount of options available today, how difficult is it to survive the hunger games? How loyal are customers to their favorites? What does it take to ensure continuing loyalty?
This is when I realized that ‘Trust’ is the most important aspect to consumers in the Restaurant industry and often underestimated because of how casual the trust has become. In fact, I think after the health industry, the restaurant industry is a runner up where it comes to ‘Trust’ being a key factor in its success. I think this ‘Trust’ can be broken down into various categories. 
  • Trust that they will take care of your health: When we eat something prepared by someone, we place our lives in their hands. This trust is often underestimated because of how often we eat out and also because of the health standards maintained in most countries. However, the minute this trust is broken consumers don’t look back. It happened with me last year where I fell sick after eating at my favorite Chinese restaurant. No second chance was given and I was on to my next favorite because there are innumerable Chinese restaurants in Chicago!
  • Trust that they will meet the expectations of your taste buds: What a bummer it is when the Spaghetti Aglio Olio you ordered is dry and flaky, when the coffee is just not right or when your favorite dumplings don’t taste like they usually do. You eat it, you pay and you leave but the impression is long lasting. Of course, a way to a customer’s heart is through his stomach. Lack of satisfaction results in lack of customers and sometimes trickles down to the customer’s network at well.
  • Trust that they will continue to surprise you- When you’re loyal to a restaurant you visit it often. It’s on top of mind for that particular cuisine or a particular type of occasion. But why would you want to go to the same place repeatedly if it does not have something different to offer every time. Customers want to be surprised. Maybe not by new menus or by fancy discounts. That would be nice, but sometimes something small that companies can afford. Starbucks offers new combinations of coffee or cookies as testers. It is surprising, immersive and memorable. I remember going back and asking whether they are actually launching the Truffle Macchiato I sampled. Sometimes it can be as little as suggesting a surprising combination that they have never tried – Their usual pizza with a zingy topping or with a freshly baked gourmet garlic toast?
 
  • Trust that they will provide an experience – Nobody wants to feel like they’re eating home food. Yes, people want comfort food, happy food, healthy food but definitely food that they can’t prepare themselves at home. Restaurants must focus on providing that unique experience that they cannot recreate at home. Either through presentation, service or entertainment.Molecular Gastronomy is doing insanely well because it’s such an experience to immerse yourself into. It looks delightful, focuses on taste but is also made using methods that we can rarely try at home.
 
  • Trust that they will build a relationship – Relationships are key in any business. The restaurant business is so intimate which makes relationships all the more important. Cooking a meal and feeding someone is so personal and has such a great opportunity to build a relationship. This in turn has an added value to combat competition. Sometimes a restaurant will come along that has fantastic food, great ambience and thoughtful pricing. Imagine, How easy it’ll be to switch from a regular restaurant to that new restaurant that offers the best! This is when the relationship comes in. Knowing your favorite waiter who knows just how you like your Risotto- lightly garnished with garlic olive oil. Or being invited to tasting sessions of new menus – it makes you feel like you are a part of their success, like you’re valued and you’re important. This is what makes a difference. You may go try that new restaurant around the corner but you’ll always come back to your regular one because it’s where you belong!
In restaurants we trust and that’s where our loyalty lies. This case has been rested.