Almost everyone loves eating out. And they do it every day!
Yet restaurant business is one of the most challenging one, with most of them downing the shutters within the one year of the start. Strange and Scary? But true.
The biggest challenge of a restaurant is to “get customers” “at the right price” and “at the right time!”. Unlike other businesses which require customer foot-falls, restaurants have limited capacity (of seats) and can serve only on a limited time-frame (a couple of hours for lunch, and a couple of hours for dinner etc). Even though a lot of people eat out almost every day, the chances of them going to the same restaurant every day are remote. So a restaurant has to build a critical mass of “floating crowd” who will eat out once in a week or 10 days there, and come back later.
Simply put, the survival of a restaurant depends on
- Getting new customers
- Retaining them so that they come back later
- Doing these 2 in the most efficient and economical way.
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