Chili After Dark has been a family owned restaurant for over 10 years. The restaurant is located in a nice neighborhood in Grand Rapids, Michigan. The restaurant made every dish from passed on recipes and from scratch. Chili After Dark has the whole family working together to focus on their main goals, which is quality, healthy, and tradition. Through their hard work and dedication, the restaurant managed to build their brand in being one of the best Mexican restaurants in the area.
Problems/Opportunities (theories, what's at stake, state the facts,)
Although Chili After Dark is known to be one of the best Mexican restaurants in the area, they have been experiencing a downfall in their net profits. Restaurants don't usually fail due to one reason; it is most likely a combination of problems that build on. Chili After Dark has had some difficulty with their management and has failed to keep up with their customer's expectations.
Chili After Dark has failed to create, build, and advertise their brand properly. The owners of the restaurant did not take the full advantage of social media in order to execute their brand. Due to their failure of advertising their restaurant on online platforms or on print, they have lost many customers. In addition, there are many services that the restaurant does not offer like take out, ordering online, and delivery.
Nevertheless, Chili After Dark has been able to maintain a few customers due to the quality of their food. But, the management team has come to the conclusion that the quality of the food will not attract customers if they are not offered full services. Additionally, Chili After Dark's owners try to handle everything in the business with little help. This lack of help and lack of employees resulted in the poor management of the restaurant.
Having a restaurant comes with many challenges in today's consumer environment. The owners of the restaurant must keep in mind that the customer expectations are always changing which makes it difficult to provide a consistent brand experience. The most challenging change that Chili After Dark has been dealing with is keeping up with technology and mobile trends. In addition, today's restaurant customers have higher standards, are concerned about their diet and nutrition, and mobile experiences.
Even though it may seem a challenge for the restaurant to use the new emerging technologies, it also brings many opportunities for the company. Using these new technologies could actually simplify every process of the restaurant. Technology has always had a positive and major impact on restaurant industries. Using technologies like mobile apps, smart devices, or kiosks make the process smoother, faster, flawless, enjoyable, and more convenient. These types of technologies not only improve the customer experience but also speeds up the process.
Using mobile apps could offer the opportunity for a restaurant to advertise their restaurant by sending location-based push notifications, coupons, or offers. It would allow the customer to place online orders for pickup or delivery, reserve a table without having to call, and other payment options. This will give Chili After Dark the opportunity to increase their target market and could offer their service to a greater quantity of people.
Chili After Dark should take these new emerging technologies to their advantage by creating a page on the social media platforms to be able to advertise their restaurant. Furthermore, they could use their mobile app to involve the community by including games related to the company or involving their customers in different manners. This will not only attract customers but will allow them to collect points, unlock perks, and collect reward discounts to dine at the restaurant.
Facts/Statistics (SWOT, research studies, surveys)
In order for a restaurant to ameliorate, they must know the strengths, weaknesses, opportunities, and threats of the business. Chili After Dark's strengths lies in the fact that they have a family-owned restaurant, they serve tasty food and have been around for a couple of years. A major weakness Chili After Dark deals with is that they lack marketing activity, they have a weak management, they do not provide adequate employee training, they are short on staff, inconsistent supplies that result in shortage on the menu, and they do not offer delivery or take-out.
Chili After Dark has many opportunities that can help the restaurant increase its profits such as expanding, introducing a new menu or taking advantage of the healthier trends. In addition, they should offer delivery services, take-out, or drive-through to meet the needs of their customers. Chili After Dark could also sell some of their restaurant products such as their sauces, guacamole, or any baked goods. The main threats of Chili After Dark are the intense competition of restaurants, the increasing demand for healthier food, and potential rising prices of certain foods.
When it comes to restaurant sales, they are rarely constant. There are many factors that play a role in how many customers come into your restaurant such as seasonality, competition, and the economy or they just do not have any incentive to go. Restaurant owners believe that there is always potential to increase sales and the best solution is advertising, giving the customer a full dining experience, and using proper restaurant technology.
Technology plays a vital role in the restaurant business; it can either increase or decrease your sales. If a restaurant is using clunky and old types of machinery, it could make the process slower, be at risk of crashing, and could result in a frustrating experience for the customers. New and emerging technology allows restaurants to meet their customer's needs with a finer experience.
Mobile technology is changing the restaurant industries and customers tend to lean to restaurants that offer such services. There are 2.53 billion people around the world that own a smartphones and that number is expected to keep increasing. In the United States, 77% of the total population owns a smartphone. When searching for restaurant information, about 60% of consumers have read an online review at least once before visiting restaurant, around 70% of smartphone owners look at the restaurant menus on their devices, 80% of consumers browse menus online before going out, and more than 90% of smartphone users search for information about restaurants on their devices. These statistics show how consumers find mobile technologies efficient, fast, and competent.
Despite the popularity of using mobile technologies, only 16% of restaurants have a mobile app. Nevertheless, 80% of consumers agree that technology improves their restaurant experience and more than 80% of restaurant owners say that technology would help increase sales, make the restaurant more productive, and give their business a competitive edge. Having a mobile app would differentiate Chili After Dark from other competitors and have a huge efficiency and cost-saving results.
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