4 Tips for Success in the Restaurant Industry

Iina Huikari
Minutes to read 4
Jan 26, 2024 2:37:19 PM

The importance of staff and customer acquisition has been a recent topic of discussion for us. The looming labor shortage in the restaurant industry has been highlighted in headlines, industry expos, and social media channels in recent years. Simultaneously, the significance of customer acquisition has only grown. The attractiveness of the restaurant industry is often examined from either the perspective of employees or customers. However, what is the connection between staff and customer acquisition? And how can they collectively impact the success of a restaurant?

The work culture is in need of a shake-up

The cause of the labor shortage has been attributed to the poor reputation of the restaurant industry. Discussions about working conditions, low wages, and the constant pursuit of efficiency have drained the last drops of allure from the industry. The competition for employees is reflected in understaffing, which easily leads to hectic environments. This, in turn, affects customer service, directly impacting customer acquisition. So, we're not dealing with minor issues here. The attractiveness of the restaurant industry is a significant factor in reaching both employees and customers. How can an individual restaurant combat the industry's general reputation? Here are four concrete tips.

1x Invest in comfort – for both customers and employees

At the core of everything is interaction. The message travels from the entrepreneur to the employees, from the employees to the customers, and from the customers to acquaintances. Satisfied employees convey a positive message and market the restaurant almost effortlessly. The importance of staff well-being has been emphasized by individuals such as Jyrki Sukula, who, in a TopFairs panel discussion last fall, urged restaurant leaders to reflect on their business practices. Business ideas can be copied, but the atmosphere and people cannot. Meaningfulness arises from interaction, which is why customer acquisition should start with an internal communication and well-being assessment.

How can one enhance comfort then? Investing in well-being doesn't require significant investments, as even small things matter. Good vibes can be supported, for example, through music—granting employees influence over the restaurant's background music choices is one way to improve comfort. Additionally, the tempo and genre of background music help regulate factors like energy levels and concentration. For instance, rhythmic music works well in a hectic work environment, such as a restaurant, as it helps us work faster. Did you know that music can also alter a person's attitude toward a task at hand? More on the topic can be found here.

Marketing can alter perception

When communication flows smoothly and the restaurant's foundational elements for success are in place, it's easy to start reaching out to new contacts. For both customers and in the face of labor shortages, comfort and a good reputation are crucial, as among your restaurant's customers may be your future employee. Marketing also plays a significant role; how you communicate with your customers directly impacts your company's visibility, appeal, and reputation.

2x Make marketing regular and purposeful

The importance of marketing has also been pondered by Peter Thiel, the first external investor in Facebook and one of the founders of PayPal. In his book "Zero To One," Thiel discusses the significant role marketing plays in selling consumer-oriented services. The cheaper the product, the more crucial communication through marketing becomes. By creating an image and communicating about your company's services, you connect with people—customers and industry employees.

When combined with goal-oriented, regular, and diverse marketing, positive visibility for the company is established. However, implementing marketing may sound cumbersome, especially in the fast-paced environment of the restaurant industry. Hiring a separate content producer often seems expensive (understandably), and executing and planning advertisements take a lot of time for an individual employee. So, what's the solution? Feelment has found that ready-made ads and ad templates are a great help! That's why we offer Digital Signage advertising service for restaurants completely free of charge. You can find more information in our magazine article.

3x Define your company's customer acquisition costs

From a marketing perspective, it is significant to consider customer acquisition costs, i.e., all the expenses associated with acquiring a customer for the business. The question then becomes: how many resources and work hours are invested in getting a customer to walk through the restaurant door and make a purchase? Understanding the costs helps establish clear parameters for customer acquisition. When implementing marketing, it is crucial to grasp the sales benefits of advertising—comparing the costs to these benefits makes marketing easier to manage as a goal-oriented sales component.

Would you recommend?

Have you ever refrained from making a purchase because you heard something negative about a company? Or, conversely, have recommendations you've heard encouraged you to try out a completely new service or product? While various marketing strategies compete for people's interest, one marketing method surpasses others in its effectiveness: word of mouth.

4x Remember the importance of referral marketing

When someone relatable recommends a service or company, people are significantly more receptive to moving from awareness to action. Generating interest alone is rarely enough; we need something that encourages us to step through the doors of a restaurant that's unfamiliar to us. From the perspective of customer acquisition, creating phenomena is crucial. When a customer sits in the chair of your restaurant and has a positive experience, they will surely share it with others. Recommendations can happen on Facebook, during a lunch break at work, or in a casual conversation with a friend. The method or location doesn't matter, as content is what matters.

Whether it's reaching out to customers or new employees, the significance of interaction and communication is immense. The experiences we share with others greatly impact the visibility of businesses and the future of the entire restaurant industry. Investing in human encounters and comfort leaves a mark and makes an impression. Soon enough, you may realize that you've reached more people than you could have imagined. The direction of the future is in our hands.


4x tips for a change in direction

  1. Invest in comfort - for both customers and employees.
  2. Make marketing regular and purposeful.
  3. Define your company's customer acquisition costs.
  4. Remember the importance of referral marketing – would you recommend the industry or company yourself?

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