In the fast-paced restaurant industry, staying ahead of the competition is critical, which is where a restaurant competitive analysis comes in. Whether you’re opening a new spot, looking to expand, or trying to revitalize your business, knowing what your competitors are up to can give you a serious advantage.
To help you stay sharp, we’ve created a free restaurant competitive analysis spreadsheet that covers everything you need to know about your competition, from operational insights to online reviews. Share your contact info to download our free spreadsheet, or keep reading to get examples of competitive analysis in restaurants and learn more about how and why you should use this powerful tool.
What is a Restaurant Competitive Analysis?
Think of a restaurant competitive analysis as detective work for your business. It’s a way to see what other restaurants in your area are doing – well or poorly – so you can learn from them and stay a step ahead. By analyzing factors like service style, cuisine type, menu items, and pricing, you can create a more informed business strategy.
A key part of this process is conducting a restaurant SWOT analysis, which helps you pinpoint your restaurant’s strengths, weaknesses, opportunities, and threats in comparison to your competitors.
Why Should You Conduct a Restaurant Competitive Analysis?
Knowing what your competitors are up to isn’t about being nosy; it’s a necessary practice that helps your business stay relevant and competitive. Conducting a restaurant competitor analysis is crucial because it can help you:
- Stay ahead of the curve: Understand what’s working (and not working) for competitors to refine your approach.
- Set strategic pricing: Knowing what similar restaurants charge can help you position your prices competitively or strategically stand out.
- Learn from reviews: Dive into your competitors’ customer reviews to uncover complaints and turn them into opportunities for your own restaurant. In one competitive analysis restaurant example, you might find that diners are unhappy about slow service at a nearby spot and decide to prioritize speed to win over customers.Â
When Should You Conduct a Restaurant Competitive Analysis?
Conducting a restaurant competitive analysis isn’t a one-and-done task. It’s a tool you can use at various stages of your restaurant’s journey, including:
- Before you open your restaurant: Gauge how saturated the market is and find opportunities to stand out. Let’s do a quick competitive analysis example for a restaurant to illustrate this point. If your dream is to open a Greek-inspired fast casual concept, an analysis may reveal that the area is already saturated with similar concepts. Instead, you might pivot to a full-service Greek restaurant to carve out a niche.
- When things are going well in your business: Don’t rest on your laurels. Check in with the competition to stay ahead of trends and keep improving.
- When things aren’t going well: Study successful restaurant competition and learn from them. What are successful restaurants doing differently and how can you adapt?
- Before making big changes: Planning to expand, rebrand, or introduce a restaurant online ordering system? See how your competitors handle it first.
What You’ll Get From This Restaurant Competitive Analysis Spreadsheet
Our handy restaurant competitor analysis guides you through several key areas, including:
- Operational analysis: Learn about competitors’ cuisine types, service models, mission statements, and much more.
- Menu analysis: See what’s popular, how pricing compares, and what kind of specials are on offer.Â
- Promotional analysis: Uncover your competitors’ marketing tactics, from special events to loyalty programs.
- Customer review site analysis: Dive into online reviews to see what customers love, and what they don’t.
- SWOT analysis: Tie it all together by mapping out your strengths, weaknesses, opportunities, and threats relative to your restaurant’s competition.
Download our free restaurant competitive analysis spreadsheet to give your restaurant a competitive edge. Whether you’re planning a new concept, tweaking your menu, or rethinking your marketing strategy, this tool will help you make informed decisions that set your business apart.
