For Restaurant Concepts, the Customer is Always Right… Even If They’re Disruptive

For Restaurant Concepts, the Customer is Always Right… Even If They’re Disruptive

A successful franchisor understands that keeping up with the ever-evolving needs and wants of the consumer contributes crucially to the company’s longevity. However, while some changes in taste are simple to identify and implement, others may require a larger, more deliberate shift in business strategy.

The Boston Consulting Group has recently cautioned restaurant operators and franchisors of the impending disruption caused by third-party delivery services. Reflective of consumers’ constant desire to simplify their lives and of rapid evolutions in technology, third-party delivery has reportedly impacted the restaurant industry more so than any other development in the past few decades. The Boston Consulting Group currently estimates delivery to make up for about 5% of the industry, with the potential to become a $75 million category by as early as 2020.

It is critical that franchisors prepare accordingly if they are to withstand the inevitable increase in third-party delivery and aggregators’ market share. Because this disruption is relatively recent, a clear and uniform response has not been developed. As such, it is imperative that all franchisors – regardless of past and present successes – look to the specific wants and needs of their customers in order to develop their own particular defense mechanism to survive in the future.

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