Top 5 Tips For Winning Competition Analysis – Restaurant Business Plan Part 2
If you are aware of what your audience is looking for, then you have a good idea of what analysis you need to include in the competition section of a restaurant business plan. If you are seeking funding for your restaurant, then you can get started writing your competition analysis section of the restaurant business plan by answering the above questions.
How many competitors operate in your catchment area?
This information will have been gathered when you identified your target market. Sources such as the internet, local county or council information, local chambers of commerce and physically investigating the catchment area, will identify the number of restaurants and what they offer.
What are the competitor strengths and weaknesses?
Once you have familiarized yourself with who your competitors are and what they are offering, you can then analyze their strengths and weaknesses. You can do this by examining them from the following perspectives:
- how long have they been operating in the market? Do they have customer loyalty?
- Where are they located? Is it considered to be a prime location in relation to other traffic generating businesses such as shopping malls, cinemas, tourist areas and high street shopping areas.
- What is their product range? Are they targeted to the demographics of the customer traffic in the area?
- What is the quality of their menu?
- What is their price point? Is it logically related to the quality and innovativeness of their menu and their level of service?
- How large are they? How many covers do they have? Is there room for them to expand?
- How do they market themselves?
- Can you make an assessment about how profitable they might be?
What is your restaurant’s point of difference?
This relates to how you define your unique selling proposition. Now you have identified your competitors’ offering, you need to compare it to your restaurant offering. Explore what it is that your restaurant is or will do differently. It might be menu related, or you may have a first class chef, superior service standards, or an emphasis on quality produce. Your unique selling point is what you need to clearly articulate in your marketing messages.