Strong consumer confidence isn’t trickling into the restaurant industry yet. What’s working? And how can you take advantage?
Restaurant Finance Monitor reported that, despite the strong economy and consumer confidence, the volume of consumers visits to restaurants is still low. Traffic is stagnant and same store sales are falling, even among quick-service restaurants, which had been the bright spot in this sector. Over saturation, low food costs, and changing consumer preferences are holding back growth.
It’s not all bad news, though. Let’s take a quick look at what’s working, so you can see where your restaurant might take advantage of the trends:
- High-value options are beating out discounts, indicating that locally sourced, natural, and clean ingredients; simple and sustainable menus, and nutritious options are trends capturing consumers’ attention right now.
- Differentiation: it’s not enough to serve up good food anymore. “Consumers are just not going to pay a premium or the same old restaurants,” so focusing on entertainment and technology may help find new customers—and keep them coming back.
- Accommodate people’s desire to eat at home, and consider delivery as an option for your restaurant. People are spending more at the grocery store, while online retailers continue to thrive. Meet your customers where they want to be—at home.
If you’re ready to implement any of these concepts in your restaurant—from hiring live entertainment or delivery drivers—you want to think about how a capital advance fits into your financing strategy and plan. With quick access to funds, you can begin to capitalize on any number of growth or hiring initiatives that will help your restaurant increase traffic. Contact Wellen today and get pre-qualified.