Why you need to monitor your competitors

Part of being in business is having competition. Some may argue that to keep your business successful, you should focus on your restaurant. But we’re here to make the case for monitoring competitors and how you can use this to get ahead.

Responsive Marketing

In the digital world, we are constantly surrounded by marketing and advertising. In order to take market share from your competitors, you first need to monitor them. Take the launch of Wendy’s breakfast as an example. Although Wendy’s launched weeks before nationwide lockdowns due to the coronavirus pandemic, Wendy’s was able to turn a profit off their breakfast menu regardless, beating out competitors like McDonalds and Dunkin Donuts. 

Part of this success comes from the lack of responsive marketing from competitors to their campaign, due in part to the 2020 coronavirus pandemic. This isn’t the first time that Wendy’s has attempted breakfast. Previously, Wendy’s had launched and shuttered breakfast options multiple times, in part due to their lack of financial success. In the past, they have spent advertising dollars in test markets, where competitors like McDonalds swooped in, spent more, marketed more aggressively, and ultimately kept their market share.

The takeaway? Keeping an eye on your competitors and taking a defensive position in your marketing strategy can lead to big payoffs. Although the breakfast wars of McDonalds and Wendy’s are on larger national scale, the same lesson still applies between smaller chains and independent restaurants who compete with one another.

Fill market gaps

By keeping an eye on competitors digitally, you will also be privy to customer reviews and feedback. If you consistently notice guests leaving your competitors negative reviews about a certain item, you can use that as a point of differentiation and fill that customer need. For example, if customers are leaving your competitor reviews saying that wait times are too long, you can create a customer guarantee that they will be seated within 20 minutes of arriving at your restaurant, or offer call ahead reservations to combat wait times.

You can also adopt this practice with your menu and food innovations as well. Let’s say you are reviewing a competitor’s menu and notice that they don’t have many plant-based or vegetarian items. This is a clear opportunity for you to increase your market share, given the popularity and expected growth of plant-based dishes in the coming years. By adding these dishes to your menu and advertising them accordingly, you can gain more customers.

Do you know who your competitors are? Do you know what marketing they’re doing? Sherane Chen LLC can help you keep tabs on your competitors and create marketing strategies to ensure your success. Contact us today or call (386) 627-3628 for a consultation!