Starting and managing a food business can be challenging, especially when it comes to generating consistent revenue. With so much competition in the food industry, it can be difficult to stand out and attract customers.
Covid has been an inflection point which gave a never-anticipated impetus to the food and beverage industry, globally. The growth that brands would have experienced in a decade is pushed to improve and incorporate efficiency in their operating methods, today. To add to this complexity changing dynamics of consumer preferences and constant influence have added a deeper layer of expectation from the brands.
Consumer influence is a significant driver of change in the food industry. In recent years, consumers have become more health conscious and environmentally aware, and their expectations from food businesses have shifted accordingly. They are looking for healthier options on restaurant menus, and they want to know what ingredients are being used in their food. As a result, food businesses are expected to offer healthier menu options, use natural and organic ingredients, and provide more information about their food’s nutritional value.
Another key aspect that has become critical in the post-covid world is environmental sustainability, a top concern for aware, agile consumers. They are looking for businesses that use sustainable practices, reduce food waste, and minimize their carbon footprint. Food businesses are expected to source ingredients from local farmers, reduce packaging waste, and implement environmentally-friendly practices in their operations.
Consumers today are also looking for authenticity and transparency in the food they consume. Traceability in the food industry is a massive opportunity, as consumers want to know where their food comes from, how it’s prepared, and what ingredients are being used.
Food businesses are expected to be transparent about their sourcing, cooking methods, and ingredient lists. With all of these issues, one of the key aspects that have taken shape is the consumers’ expectation for personalized experiences when it comes to food. They want menu options that cater to their dietary restrictions and preferences, and they want to be able to customize their orders. Food businesses are expected to offer more options and flexibility in their menus to cater to these personalized preferences.
In this new market, which is young, aware and experimentative, with the right strategies in place, consumer-facing food businesses, which includes Restaurants, Cloud kitchens, and D2C brands and can significantly increase your revenue, can create an indelible impression and grow their food brands across markets.
Here are some key steps that food businesses should undertake to improve their revenues. These hacks are based on proven strategies that successful food businesses are using to increase their revenue.
- Understand what’s trending !! Introduce new menu items regularly
One of the best ways to increase revenue in a food business is by introducing new menu items. By adding new dishes to your menu, you can attract customers who are looking for something different or exciting.
Additionally, introducing new menu items can increase the variety of food you offer and make your restaurant or cafe a go-to spot for a wider range of customers. That said, all new introductions should be designed to leverage the existing supply chain and production infrastructure. To introduce new menu items, brands must conduct local market research to identify customer preferences and variations in choices for a fortnight.
One can use social media platforms to test the waters and map responses, online surveys, or in-person questionnaires to gather information on what your customers like and dislike are good ways to decode shifts in tastes and preferences. Based on this information, create new menu items that align with customer preferences.
When introducing new menu items, it’s important to promote them through various marketing channels. You can use social media platforms, email marketing, or in-store promotions to advertise new menu items. By promoting new menu items, you can create buzz and generate excitement among your customers.
2. B2B should be a critical part of the strategy
In an evolving consumer market, businesses with deep cash reserves and war chests tend to be more agile and prepared better to tackle competition with speed. While restaurants and cloud kitchens should offer catering services leveraging their existing infra, catering services provide an additional revenue stream and can bring in the required buffer to experiment in the consumer business.
By offering catering services, you can reach a wider audience and generate more revenue. Catering services can be used for a variety of events, including weddings, corporate events, and parties.
To offer catering services, start by creating a catering menu that includes a variety of dishes that can be easily transported and served at events. You can then promote your catering services through your website, social media, and other marketing channels. When offering catering services, it’s important to provide excellent customer service and ensure that the food is of high quality. Word-of-mouth marketing can be powerful for catering services, and providing exceptional service can lead to repeat business and referrals.
3. Don’t limit your existence to Instagram !!! Improve Social & online presence
In today’s digital age, having a strong online presence is essential for any food business. By increasing your online presence, you can reach a wider audience and generate more revenue. To increase your online presence, start by optimizing your website for search engines. This includes using relevant keywords, creating high-quality content, and ensuring that your website is mobile-friendly.
You can also use social media platforms to engage with your customers and promote your business. This includes creating a social media strategy, posting regularly, and engaging with your followers. Another way to increase your online presence is by partnering with food bloggers and influencers. Instead of doing a paid activity with them, try and negotiate a reseller model where they are incentivised on campaign-generated sales. This will help increase your reach and generate buzz about your business and keep costs in check.
Apart from partnering with bloggers and influencers, start by identifying and looking for credible media platforms that endorse your product and help you with an amazing reputation. Collaboration in the food businesses is the key to long-term recall and communicating with various permutations and combinations with consumers.
4. Decrease Customer Acquisition Cost !!! Implement loyalty programs. Incentivise the consumer for every purchase.
Loyalty programs can be an effective way to increase revenue in a food business. By rewarding your loyal customers, you can encourage them to come back and increase their spending on each visit.
Additionally, loyalty programs can help increase customer retention and generate repeat business. To implement a loyalty program, start by creating a rewards system that is easy to understand and offers tangible benefits to your customers. This can include discounts, free meals or drinks, or other incentives.
You can then promote your loyalty program through your website, social media, and other marketing channels. When implementing a loyalty program, it’s important to track the results and adjust the program as needed. This includes monitoring the redemption rate and adjusting the rewards system to ensure that it is effective in increasing revenue.
5. Focus on upselling and cross-selling
Traditionally brands undertake Upselling and cross-selling within their product range. That usually is dependent upon consumers returning for a hero product from the brand. This strategy can be limiting as the consumer is in a very dynamic market setting.
Today brands need to leverage the aligned ecosystem of other brands that can offer their products as an add-on to their customer. This de-risks brands and helps them achieve more consumer engagement and future recall. It can be an effective way to increase revenue in a food business.
By offering additional products or services, you can increase the value of each customer transaction. To upsell, offer customers a larger portion size, an extra side dish or a more expensive menu item. To cross-sell, recommend complementary items that can be added to their order, such as a drink or a dessert.
6. Offer direct online ordering and delivery with a pay-later option
In recent years, online ordering and delivery have become increasingly popular in the food industry. Offering direct online ordering and delivery can save you upwards of 25% and helps the brand build a direct relationship with the brand.
To offer direct online ordering and delivery, brands can partner with third-party platforms which provide pre-designed platforms that can be customised as per the requirements of the brand. Some of the logistics players are offering a solution for standalone brands that help them run independent operations and fulfil their orders directly.
7. Create your IPR events !!! Host events and promotions
Creating IPR is a great way to engage customers and improve your brand value with customers. Hosting events and promotions can be a great way to attract new customers and generate buzz about your business.
While some of the larger brands offer such experiences, all brands must try and undertake such activities even if it is hosting small initiatives like a live music night, a trivia night or a themed event. You can also offer promotions, loyalty benefits programs, bonuses or holiday specials.
Some of the elements that have to be key to any food business are the mechanics to engage the customer by providing exceptional customer service. It is a powerful way to generate repeat business and positive word-of-mouth marketing.
Make sure your staff is well-trained, friendly and attentive to customers’ needs. Respond to customer feedback and address any concerns promptly and professionally. Finally, implementing cost-saving measures can help you increase your revenue by improving your profit margins. This can include reducing food waste, optimizing inventory management, and negotiating better prices with suppliers. By reducing costs, you can improve your bottom line and increase your revenue.