Excellence, therefore is not an act, but a habit.
According to the National Restaurant Association 2017, the percentage of orders booked online or using a smartphone or tablet app was noted 4% of the U.S. GDP. At one point in time, when in-person visits to restaurants for actually sitting at a table to break bread are at a decreasing rate and so far electronic orders have been a boon to the industry. They’ve tripled over the past five years.
By taking the past trends and long-term growth prospects into account we have mentioned some of the positive highlights of investing in a food industry:
- Numerous Sales Building Strategies:
In a competitive world, restaurant operators are trying best to navigate a challenging sales environment by bringing innovation on the menu front to cater every customer so that they attract them once again.
Another strategy is the reimaging of stores which have already received a remarkable response from customers. For example, Domino’s Pizza, Wendy’s and Red Robin Gourmet Burgers Inc. have been working on this segment. Reimaging of stores helps in fascinating more customers and it gives a brand new boost and over all client experience is enriched.
- Focus on Digital Ordering:
The digital world has hit the U.S. restaurant on a large scale. Many restaurateurs are adopting technology to enhance the guest experience. Smartphones apps attract more and number of consumers all over the world so apps ensure convenience by implementing quick-service restaurants and table top devices speed up sales.
Social media has also played a wide role in enhancing promotions and market various restaurants. Facebook, Twitter, and blogs are helping in marketing by posting reviews and feedback from customers.
Domino’s has set an example by launching on different ordering apps and platform which is boosting their digital orders. Starbucks Corporation also leads in mobile and digital assets. McDonald’s Corp. has finally begun testing mobile order and pay capabilities on its app in the U.S. restaurants and in 6000 restaurants in the U.K., Canada, France, Germany, China and Australia by the end of this year. Considering today’s scenario company takes mobile ordering a way to win back customers and sustain in the market for a longer period of time.
- Delivery Gain Preference:
For increasing the demand for products many companies are focusing on growing they’re online –ordering business via a different delivery app and catering. Nowadays main focus is on the delivery channel and it directly reflects on sales of the companies.
A company like Starbucks has already initiated delivery services for food and beverage. Another company The Cheesecake Factory Inc. has pulled out delivery in nearly half of its restaurants leading to incremental sales. McDonald has also started the same delivery services.
- International Development:
A number of restaurants are going international and in that race, Domino’s and Papa John’s are leading. In fact, Domino’s earns a large amount of revenue from outside the U.S. with a number of worldwide franchisees. A company like Cheesecake Factory has expanded the business in many countries such as Middle East, North Africa, Central and Eastern Europe, Russia, Mexico, China, Kuwait, and Chile. Companies believe that going global will expand their growing opportunity in existing market and as well as in new markets.
- Favourable Macro Factors:
Many things affect the business and micro factors are such which hard to avoid rising wages, increasing real income, gowning household net worth, changing employment and customer reinforcement.
It is said the consumer is more into dine out and so it’s easy to put a check on declining traffic. Eating out is one of the common things in the family budget today and it is considerably growing. It keeps the investors happy.
There are so many reasons to sustain in a food industry. Growing sales and the digital market had given a new boost to restaurants from cater and ever- changing wants of customers.
We can say that industry is growing at a modest pace with innovative ideas and strong fundamentals. Thus, investing in some good restaurant is not a bad idea.