A Brief Note On The Restaurant Industry Has Changed Over The Past Few Years

A Brief Note On The Restaurant Industry Has Changed Over The Past Few Years

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Restaurant industry has completely changed over the past few years, from how we place an order to how we receive our order. It also changed the way of how people make their decisions to visit a restaurant. With over half of the world’s population using the social media everyday, online reviews and ratings became a major source of information for consumers. People are using the social media, online reviews, ratings and electronic word of mouth to search and analyze different places before making any decision to visit a restaurant.

At first these online reviews and ratings are used to find what customers actually want and to determine the future sales but has little effect on the customer’s decisions. In simple terms, at first they are used predictors rather than influencers.
But as the social media grew day by day, it became the number one source of information for consumers. People usually write reviews to,

⎫ To help other consumers to make better decisions.
⎫ To share their experiences.
⎫ Because it’s a way to give feedback and help them to improve.
⎫ To correct the online reviews portal after seeing some fraudulent reviews.
⎫ Sometimes even for fun.

Below we can see the statistics of people who write online reviews by age group. Consumers in the age group of 16-25 are writing more reviews than other age groups. We can also see that review written by women are more than reviews written by men.


These online rating and reviews have a great impact on the consumer’s decisions, they answer many questions. Few of them are

⎫ What tastes good at that place?
⎫ How’s the customer service?
⎫ Is the food worth the price?
⎫ What is the perfect time to visit the restaurant?
⎫ How’s the ambience and atmosphere?
⎫ What do the people lik...


... middle of paper ...


...from the recent ones.

Damaging Information: Sometimes organizations write damaging information about competitors to decrease their ratings which in turn leads to their decrease in their future sales and revenue, so we cannot predict which review is actually negative and which one is written by the competitors.

Opportunities:

Increase in Revenue and Sales: We can use Watson analytics to know what are the services provided by other restaurants that attract customers, what quality of food they are providing and many other things. We can make a note of these and can use them in our restaurant to improve sales and revenue.
Room for Improving: We can also look at the 1 Star rating to determine what are the precautions we should take to avoid low ratings and negative reviews.

No negative reviews High consumer trust Increase in future sales Increased revenue.






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