Competition in the Restaurant Industry

Have you heard the term Coopetition? If not, you’ll hear it soon. It’s causing quite a stir in marketing circles.

So, in case you’re not familiar with the term, let’s start by defining coopetition. If we check Wikipedia, we find the following definition:

“Coopetition or Co-opetition is a neologism coined to describe cooperative competition. Coopetition occurs when companies work together on parts of their business where they do not believe they have a competitive advantage and where they believe they can share common costs. For example, the cooperation between Peugeot and Toyota on shared components for a new city car for Europe in 2005. In this case, the companies will save money on shared costs, while remaining fiercely competitive in other areas, defining very clearly where they are working together. , and where they are competing.

Their long-term business success comes from not only successfully competing against other restaurants, but also working with them to your advantage.

Cooperation is part competition and part cooperation. When restaurants work together, they can create a much larger and more valuable market than if they worked individually. Restaurants can then compete against each other to determine who gets the most from the largest number of potential customers.

A good example of restaurant cooperation is when there is a section of a city or town that has several restaurants concentrated in a relatively small area. If you look at this area from a traditional business point of view, opening a food service establishment seems like a bad idea.

Why should someone open a restaurant in an area that is already full of restaurants?

The reality is that the abundance of places to eat attracts customers who may visit the area with no specific restaurant in mind, and make their decision when they arrive.

This is where the competition begins.

Normally, restaurants with the best atmosphere or with the most attractive menu or with the best value for money, which are filled with more people, tend to attract more customers…

There are many typical examples of coopetition such as:

o Food courts: All restaurants are located together in places such as shopping malls, sharing tables, trays, cleaning services, etc. Customers are brought to the same place (cooperation) and then compete for your business (competition).

o Publicity: Sometimes restaurants collaborate to put together a gastronomic magazine or similar publication in which each one contributes (both in money and in content) to the publication.

o Special Food Events: Sometimes multiple restaurants host food events where everyone contributes food or displays their items at the food booths. Due to the involvement of many restaurants, and good marketing, crowds of people attend these events (there is usually music involved, and often many other activities as well).

or etc.

As you can see, these are some of the coopetition possibilities. However, there are some other intriguing ideas for you to consider. Here are some to think about:

o Cross-promotion with restaurants that offer food different from yours. Often their menu does not directly compete with other restaurants. If a person is in the mood for Italian food, for example, they will not go to an Indian restaurant for dinner or vice versa.

Perhaps you can join forces with restaurants in your area that have other styles of cuisine and together create a coupon book that you can distribute to regulars at participating restaurants. Or maybe you could create a discount card that your customers could use at any of the restaurants in your area. This will attract more customers to your neighborhood.

o Cross-promotion with restaurants that offer the same type of food as yours, but are not located near your location.

Again, people often prefer to go to restaurants that are close to their home or place of work. If there’s a French restaurant nearby and they’re in the mood for French cuisine, they usually won’t travel far to another French restaurant…unless the other French restaurant is so superior it’s worth the trip, and this is where the competition comes in. in action.

So what can you do a cross promote? Well, if you have an ethnic restaurant, you could create a newsletter that shares the printing and distribution costs with similar restaurants and distribute it to customers of all the restaurants involved. The newsletter should cover articles on food, culture, geography, etc. the country of origin of the restaurant.

But what if your restaurant is an all-American place? Give unique information about your areas. You may still have curiosities about the specific states, some local recipes, etc.

o Join forces to negotiate better deals on bedding, food and beverage products, menu printing menus, etc. Imagine talking to nearby restaurant owners and making a deal to use the same vendors for common things like linens, candles, dishwasher maintenance and supplies, garbage and/or grease disposal, exhaust filters, printed menus, etc. Then you could apply for a volume discount from these distributors and everyone will benefit.

These are just a few quick examples of coopetition. Joining forces with your competitors could be a win-win proposition. Be smart about it and think about the areas where you could both benefit.

Can you think of more areas of coopetition? I would love to know. Please visit my website and let me know.

Happy Co-opetition!

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