How restaurants can retain diners amid the cost of living crisis – SevenRooms’ Danilo Mangano shares his opinion.

How restaurants can retain diners amid the cost of living crisis

BACKGROUND

SevenRooms is a guest experience and retention platform that helps hospitality operators unlock the full revenue potential of their data. From neighbourhood restaurants and bars to international, multi-concept hospitality groups, the end-to-end platform enables operators to build direct guest relationships, deliver exceptional experiences, and, ultimately, bring guests back. The full suite of products includes reservation, waitlist and table management, online ordering, review aggregation and marketing automation.

Founded in 2011 and venturebacked by Amazon, Comcast Ventures, Highgate Ventures and Providence Strategic Growth, SevenRooms has dining, hotel F&B, nightlife and entertainment clients globally, including Bloomin’ Brands, MGM Resorts International, Mandarin Oriental Hotel Group, The Cosmopolitan of Las Vegas, Jumeirah Group, Wolfgang Puck, Michael Mina, LDV Hospitality, Zuma, Altamarea Group, AELTC, D&D London, JKS Restaurants, Marcus Wareing Restaurants, Dishoom, Corbin & King, Live Nation and Topgolf.

Danilo Mangano (pictured left), managing director, international, at guest experience and retention platform, SevenRooms, shares his views.

RETAINING CUSTOM

According to new forecasts from IGD’s Eating In Vs. Eating Out Report, nearly 90% of consumers will be looking to save money when eating out next year as disposable income falls. With a challenging year undoubtedly ahead for the hospitality sector, operators must do all they can to get a greater number of guests through their doors, more often.

Restaurants that create unique and personalised offerings to attract consumers and provide meaningful, stand-out experiences that encourage them to re-book will win out when it comes to forging strong relationships.

Technology and customer data have a huge role to play in enabling them to do this effectively to drive loyalty. With fewer resources than ever before, hospitality operators that leverage important insights about their guests will be able to do more with less and keep guests coming back.

CAPTURING VALUABLE INSIGHTS – AND SOME PRE-VISIT REVENUE

Each time someone enters a restaurant, joins an online waitlist, makes a reservation, or places an order, there are new opportunities to gain useful insights about that guest.

These data points tell operators something new about a guest’s dining experience, including likes, dislikes, ‘niceto-haves’ and necessities. This can all help to give them a greater understanding of why a guest has chosen their venue, how they might tailor future experiences, or whether there might be relevant bespoke promotions that would encourage them to return more frequently.

What’s more, technology is giving operators the opportunity to introduce policies that can maximise takings before guests even come through the door. Optimising reservations, for example, enables them to create a better online experience for guests, like pre-selling bottles of champagne or a wine pairing ahead of the visit, or giving guests the ability to share any allergies or special occasions they’re celebrating.

TAPPING INTO TRENDS

As we look towards the year ahead, venues must look to expand their customer base by demonstrating an ability to adapt to consumer trends.

Social media is having a profound impact on the ways in which diners choose and book an establishment to dine at. We have seen the popularity that ‘going viral’ on platforms such as TikTok can bring – particularly with younger diners – but as yet many restaurants have been slow to convert social media fame to bookings.

SevenRooms’ research found that almost two-thirds (59%) of restaurants don’t take reservations through social media. 58% of Gen Z say they would visit more restaurants they found through social media if they could book there and then – so it’s clear that leveraging the power of social to boost bookings will help operators to tap into additional streams of revenue.

For restaurants, ensuring they capture bookings is as easy as enabling a ‘reserve’ or ‘book now’ button on their Instagram or Facebook page. When linked through to a direct booking platform, reservations can be set up and taken through social media in a matter of minutes.

DELIVERING A 5* EXPERIENCE EVERY TIME

Accumulating customer information is essential, and drawing upon in-person interactions is a great place to start.

At a restaurant, the front of house staff may know a select group of regulars, from what their favourite dishes are to where they prefer to be seated. Getting to know more diners on that level is possible with the help of technology - guest management platforms that enable the ownership and capture of data can be vital in making the guest experience more memorable for guests.

Venues can use data insights to make dining experiences feel special and personal for everyone who walks through the door. Showing diners to a corner table because that’s where they’re happiest or having their favourite aperitif waiting for them when they arrive are just some of the curated touchpoints that foster guest loyalty.

With the right data and tools in place, operators can even serve up a personalised menu on a guest’s smartphone that highlights their favourite dishes while automatically removing those containing allergens. By doing this, venues are creating a unique, highly personalised experience that will keep a guest coming back time and again. This is particularly valuable in a time where meals out are increasingly a special treat rather than a weekly occurrence – the small touches make up a huge part of what makes a restaurant experience special and enjoyable.

KEEP THEM COMING BACK

Customer loyalty is rarely built on a single visit; long-term profitability relies on regulars. In fact, studies have shown that it can be up to seven times more expensive to gain a new customer than to retain an existing one, making repeat guests the key to future success.

Guest relationships don’t end when the bill is paid - leveraging data to keep customers engaged after their dining experience is crucial to enticing them back. Following up with a well-timed and relevant marketing email demonstrates that the restaurant values their custom and serves to keep them front of mind for diners looking to enjoy the experience again or to recommend to friends, family, or colleagues.

Platforms that can automate this marketing based on the date of a guest’s last visit or perhaps an upcoming birthday are even more likely to have a positive impact, bringing customers through the door without staff having to lift a finger.

For example, many restaurants are currently promoting New Year’s Eve events. With guest order data, operators can create a segment for champagne drinkers and lure them in with a free glass of their favourite. Or, looking further in the future, guests can be invited to celebrate their next birthday or anniversary with a bottle on the house. The key to higher email open rates and repeat business is relevance, and guest data provides a 360° view into what guests want and will come back for.

We are entering an era of hospitality where repeat visits matter more than ever. As consumers tighten their belts, the venues that provide unmissable experiences will be in a stronger position to navigate the challenges ahead. The options are endless for restaurants to use customer data and technology to personalise the experience to drive loyalty, repeat business and revenue. Being able to capture valuable insights and use these to build direct and meaningful guest relationships will be fundamental as we move into 2023 and beyond.