If businesses learned anything over the last few years, it’s the importance of agility — achieved through knowing their customers better than anyone else, opening new revenue channels, testing new ways of doing things and having the right tech in place to keep moving forward. In other words, operating like startups.
It’s that startup grit that helped Teppanyaki Time, part of the Lucky Dog Mountain Hospitality Group, to beat all odds when they opened a new restaurant in a small Georgia mountain town at the height of the pandemic. After experiencing a temporary closure due to a staffing shortage and supply chain issues that required chefs to travel four hours for authentic ingredients, Teppanyaki Time bounced back and built a thriving business.
They’re not alone. The majority of U.S. restaurant owners and operators surveyed by Popmenu reported that their businesses have reached or surpassed pre-COVID levels and that they are feeling more optimistic about their prospects. However, they remain keenly aware of ongoing economic threats and the need to stay nimble as markets ebb and flow.
Leaning into the startup mentality that helped restaurants survive one of the longest rollercoaster rides in contemporary history is critical in challenging — and healthy — economic climates. The following are five habits of startups that every restaurant should adopt or sustain to protect and grow their business going forward:
1. Startups fully capitalize on technology
Startups wring every ounce of efficiency and opportunity out of their tech stack, and restaurants are following suit. From digital marketing and ordering to on-premises services, restaurants are combating inflation and labor gaps with technologies that can help them grow sales, streamline operations and cut costs.
The need to do more with less inspired Phat Eatery in Katy, Texas, to adopt AI phone answering technology that can field calls with custom responses and send callers links to make a reservation or place an order. Phat Eatery has answered thousands of calls with this technology, freeing up staff and generating $86,000 in online orders.
Restaurants are also moving away from disparate point solutions to a single platform. According to Popmenu research, 40% of restaurant leaders evaluate their technology performance on a quarterly or monthly basis — opportunities for consolidation factor into the assessment.
2. Startups make it easy for people to find them
Startups prioritize their digital presence and reach, as many restaurants do considering that the vast majority of U.S consumers decide where to eat online. One in four consumers say one of the most important factors influencing their choice is whether the restaurant shows up on the first page of Google search results.
Most restaurant website traffic comes from queries like “restaurants near me.” The more pages a website has that are relevant to the query, the higher the restaurant appears in search results. Max’s Group Inc., a global, multi-location restaurant group, has an interactive menu where each dish is treated as its own indexed page, which provides Google with a large amount of content to crawl. When diners search for “best Filipino food in south San Francisco,” Max’s comes up first.
Max’s focus on search engine optimization resulted in a 58% increase in website traffic within six months. In addition, when consumers view their online menu, they see photos, reviews and likes for individual dishes, giving them all the information they need to place an order or dine in person.
3. Startups know their customers well
The most successful startups, and restaurants, make it a point to know everything they can about their customers’ preferences and behaviors. Contrary to popular belief, this doesn’t require a huge investment of time or money; in fact, it can be largely automated.
Ocean Deli Pizza, a single location restaurant in Wallops Island, Va., is a great example. Visitors to their website immediately see a pop-up with an incentive to become a VIP and join their email list, which has grown from zero to 6,000 people over the last two years. Ocean Deli also offers online ordering on their own website vs. a third-party site, which enables them to capture more data about which dishes their guests ordered or liked. All of this helps them to automate more customized email campaigns. Last year, Ocean Deli generated nearly $600,000 in online orders and they expect to reach $1 million in 2023.
4. Startups actively search for new revenue opportunities
Whether it’s through adding new revenue channels or leveraging existing ones, startups continually explore ways to get more cash in the coffers. For restaurants, the ubiquitous adoption of online ordering during the pandemic led to a new trend of hosting special online events that can drive quick spikes in sales. The events can be more profitable for the restaurant based on the package they construct or the controlled nature of the execution (i.e., limited time offer and designated pickup window).
Chai Pani Restaurant Group hosted a Thanksgiving online ordering event at their Buxton Hall Barbecue restaurant in Asheville, N.C. The event, which offered a full Thanksgiving meal with all the fixings, generated over $13,000 in online sales. It was so popular, the restaurant had to source more turkeys to fulfill orders.
Dashi in North Charleston, S.C., takes a different approach, offering a series of special online ordering events for specific businesses within their community. The events have helped them to build relationships and keep a steady stream of income.
5. Startups A/B test — a lot
In simplest terms, A/B testing is running two versions of something to see which one performs better, a staple of startups. In the restaurant world, this could mean comparing menu items (e.g. two burgers with different toppings) or how dishes are presented online with photos and descriptions. For example, R&D Provisions in Atlanta considered which online photo would help to bring in more grilled cheese and tomato soup orders, the sandwich dunked in the bowl or placed next to it.
Restaurants can also use A/B testing to see which marketing headlines capture more attention or which special offers generate more business; is it “half-price appetizers” or “buy one, get one free”? The more operators test and measure, the more they learn and earn.
Looking forward, it’s imperative that restaurants continue to operate with a growth mindset, pivot quickly, embrace technology and gather deeper customer intel. Recent history shows this startup mentality will serve them and their guests well.
AUTHOR BIO
Brendan Sweeney is the CEO and co-founder of Popmenu, a leader in digital marketing, ordering and on-premise technology that works with over 10,000 independent restaurants and hospitality groups. With a strong background in product development, user experience and marketing for high-growth SaaS companies, Sweeney leads efforts to deliver easy, immediately impactful technology that drives better financial outcomes for restaurants. He can be found on the global speaking circuit, industry podcasts and news sites. Before Popmenu, Sweeney served in senior product leadership roles for Commissions Inc. and CareerBuilder EMEA.
