What Are Restaurant Analytics?
At its core, restaurant analytics is the concept of analyzing all of the data related to your restaurant business and transforming it into actionable insights with the help of business intelligence software that will ultimately lead to significantly improved efficiency. In today’s hyper-connected digital landscape, it’s possible to collect, organize, and present every single fragment of information – from wait time to staff performance and menu optimization – in a way that will help your restaurant evolve and improve on a continual basis.
Why Are Restaurant Analytics Important?
Business analytics for restaurants is integral to understanding the inner workings of your business but and being aware of how you can improve it to foster a sustainable level of success that will set you apart from the competition.
By working with relevant key performance indicators (KPIs) and data dashboards, you’ll be able to track, monitor, and measure your most valuable business insights in a way that is clear, concise, and digestible, pulling from past, present, and predictive data. This will enable sustainable KPI management processes that will ultimately increase productivity and save money.
Restaurant data analytics will help you get to the heart of the issue and understand the whole truth about your business. While we’re on the subject, let’s look at how business analytics for restaurants will help you make positive changes that get real results.
In summary, restaurant-based data analytics is crucial to the success of your restaurant because they enable you to:
- Organize your data and omit any metrics that are relevant to your goals.
- Transform your most valuable data into actionable insights.
- Monitor, measure and track your performance with interactive KPIs.
- Spot emerging trends that will set you apart from the competition.
- Make your business more efficient, more intelligent and more profitable than you ever thought possible.
The Role Of Predictive Analytics In Restaurants
Studies from The Perry Group and The Restaurant Brokers suggest that 90% of restaurants that are independently owned close within one year of opening. Moreover, 70% of restaurants that manage to survive for 12 months close their doors within the next three to five years. So, it’s no exaggeration to state that the vast majority of restaurants that open in this world don’t succeed. But that doesn’t mean yours can’t.
We’ve explored what restaurant analytics is and how data analytics for restaurants can help you understand your business on a deeper level. But before we drill down into the specific ways in which restaurant data analytics can enhance your empire, it’s important to grasp the general role of predictive data in the service industry.
While predictive analytics isn’t some form of magic digital psychic, this branch of forward-thinking data and insight can help your restaurant make invaluable changes based on trends that suggest how particular elements of your business are likely to unfold.
Here are the primary roles of predictive analytics in restaurants:1. Forecasting trends
Restaurant predictive analytics use historical as well as real-time data to forecast future strengths, weaknesses, and trends. By gaining access to this information, usually with the help of a live dashboard, you’ll be able to formulate strategies and create initiatives that will help enhance the future success of your business.2. Panoramic vision
By working with predictive analytics, you’ll gain the ability to drill down into past and present trends, insights and visualizations and thus, create a narrative with your data. In doing so, you’ll enjoy a panoramic vision of your venture, gaining the perspective you need to really get to know your restaurant which, in turn, will give you the inspiration you need to develop innovative business-boosting strategies.3. Operational efficiency
From the reduction of food waste to seasonal menu optimization and future staff performance levels, restaurant predictive analytics can assist in the daily, weekly, and long-term operations of your business – benefits that we will look at in due course.
Modern Restaurants Analytics Answer Critical Business Questions
One of the fundamental benefits of restaurant-based data analytics is that fact that it can help you uncover critical business questions. By doing so, you’ll make your restaurant more cohesive, more competitive, and of course – more profitable.
As a restaurant business owner, you’ll no doubt have a host of burning questions you’ll want to find actionable answers to every single day. And as we said, restaurant analytics will help you with the process.