December 7, 2022
Lauren Platero

10 Ways to Implement Product Differentiation At An Eatery

Are you searching for ways to grow your business? If so, look no further! Conduct product differentiation if you’re a restaurant manager looking to enhance customer satisfaction and raise the restaurant profit margin.

Product differentiation can look different from one business to another. Whether you keep up with food trends or utilize innovative restaurant technology, there are numerous ways to conduct product differentiation. But before we jump into ten ways restaurants can do so, let’s define the term.

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Product Differentiation: Definition

Product differentiation is the concept of creating products and services that differ from others on the market. First, learn how to find a target audience. Then, develop products, services, and features that suit the needs of this customer profile.

10 Ways to Implement Product Differentiation At A Restaurant

Product differentiation is ideal for raising profits. In doing so, you can also increase the ROI. The ROI meaning refers to the amount of revenue generated by investments.

There are many ways to implement product differentiation within the restaurant industry. Keep reading to learn how your business can rise above restaurant competition by making the right choices.

1. Have Unique Menus

Unique menu items are effective selling points. Such food items can help generate exposure and establish a sense of loyalty with locals.

Is there a particular cuisine that your chefs have down to a science? Or, perhaps you live in a region where a certain dish is super popular. No matter what it is, ensure that you offer menu items you cannot find elsewhere.

Restaurant owners can take this one step further by searching menus online for unique items. This step can be done on a mobile food app to save time. It will help you scout out items that aren’t available at local eateries, providing insight into unique menu items.

It’s always important to keep dietary restrictions and preferences in mind. In fact, some people can’t dine out in their area due to medical concerns like food allergies. Creating all-inclusive menu types and a safe environment for all guests will ensure frequent visitors.

2. Establish Great Prices

Menu pricing is essential for rising above restaurant competition. Every restaurant manager should aim to offer low prices without disrupting revenue goals.

Find ways to cut back on restaurant expenses to avoid overcharging. For example, use a restaurant inventory management app to maximize your stock. This tech will allow you to order what you need rather than what you anticipate.

Restaurants can also save money when they shop from a wholesale directory. Compare prices and group items together to avoid overspending on ingredients.

3. Be Sustainable

Eco-friendly restaurants draw business for their sustainability efforts. Consumer data shows that many people support businesses by “voting with their wallets.” With this in mind, every business owner must find ways to align with customer values.

Sustainable efforts in eateries can include a variety of things. Some eateries might replace glassware and dishware with reusable materials. Others might opt for food donation programs to lessen food waste.

Regardless of which strategies you choose, ensure that they are methods you can sustain (no pun intended) long-term.

4. Offer Delivery and Curbside Pick Up

Not everyone is in the mood to dine out. Other times, customers might be too busy to visit a brick and mortar eatery. So, allow people to purchase items for delivery or pickup.

Online ordering apps are useful for speedy meals. Including checkout options for how customers would like to receive their order is imperative.

Don’t forget to include features like menu item suggestions to upsell orders. And, for the customer’s convenience, include real-time alerts.

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5. Offer Half-Off Appetizers

If you have an appetizer list that customers love, try offering a half-off menu. These items can be available on certain days of the week or after a specific time of day.

When you initially launch a restaurant, one of the first steps you should take is to learn how to price a menu. So, you must ensure that pricing items 50% off will allow them to remain profitable.

Half-off appetizers are perfect for a happy hour menu and drink specials. By providing discounted drinks with food items, customers will experience a much greater value.

6. Create A Rewards Program

Rewards can persuade consumers to visit your business over restaurant competition. Plus, it can also incentivize customers to return.

Launching a restaurant loyalty program is a simple and effective solution. Not every eatery offers it, and it’s a way to rise above the competition.

For instance, if customers are a few points away from receiving a free meal, they’ll likely visit your business. And if someone has an offer for a free item, they probably won’t go somewhere else either.

Rewards can help nurture a sense of exclusivity. In doing so, you’ll stand out from other local eateries.

7. Extend Hours of Operation

If your restaurant sits within a suburban area, there probably aren’t too many places open late at night. With this in mind, extend your hours.

Extending hours of operation doesn’t mean you have to offer 24 7 food delivery. However, remaining open just a few hours past competitors’ closing times can do wonders.

Unless you live in a major city like New York or Los Angeles, your eatery will be the only option still open at some point in the night. This means anyone on the go, getting off work, or traveling through your town may stop by.

8. Utilize DIY Tech Solutions

If you operate a quick service restaurant or another kind of casual dining experience, then DIY tech solutions might benefit your business.

Pay at table restaurants do very well, as tableside devices speed up the turnover rate. This tech allows customers to view menus, place orders, and pay the bill without one of the waiters present.

Another similar type of DIY restaurant tech would be QR codes. Customers can view menus before the wait staff drops them off. Plus, this can help customers make better decisions, as they have more time to browse their options.

9. Cater and Host Events

Converting a portion of your space into a venue can elevate your business. If you’re one of few eateries in the area that also function as a venue, you’ll stand out amongst other restaurant competition.

Nowadays, there are even event reservation software options for large parties and events. Learn more here about Revolution Ordering’s newest group reservation management feature for booking restaurant reservations.

10. Give Back to the Community

Charitable efforts are often ways that the community likes to get involved. Once you begin supporting local businesses and nonprofits, the exposure is bound to follow.

Many eateries host fundraisers and sponsor local organizations. In doing so, they also have the opportunity to collaborate. Whether it’s print advertisements or features throughout an email marketing strategy, there are many ways to cross-pollinate promotional assets.

Giving back to the community also coincides with positive press. Whether you host special events in honor of a nonprofit or donate to a charity in need, positive recognition will occur. Once people learn about you for good reasons, there will be a greater interest in dining at your business.

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Contact us for a demo now to see how our off-premise solutions can help grow revenue and earnings of restaurants.

Frequently Asked Questions About Product Differentiation At An Eatery

Product differentiation is vital for all types of businesses. Creating unique selling points will help boost performance regardless of which industry you’re in. Want to discover more about the nitty-gritty of product differentiation? Read on to gain more knowledge about the topic.

What Is An Example of Product Differentiation?

An example of product differentiation is any item or service unique from others on the market. For example, a snack food brand might pursue product differentiation by offering nut-free options. Or, a meal-prep delivery service might conduct product differentiation by offering vegan and vegetarian plans.

How Can Restaurants Differentiate Themselves and Their Products From Competitors?

Eateries can conduct product differentiation and rise above restaurant competition by using the following tips:

  • Create unique menus
  • Offer takeout and delivery
  • Have competitive prices
  • Cater and host events
  • Host charity events
  • Offer specialty menus

How Does McDonald’s Differentiate Its Products?

McDonald’s uses customer data to offer different menu items in other areas. By having a regionalized menu, they’re also able to differentiate products from local competitors. Plus, it allows the corporation to cut expenses by not offering products where they may not sell.

What Are the Three Main Types of Product Differentiation?

The three main types of product differentiation are:

  1. Horizontal Differentiation: Any differences that are not associated with the product’s quality.
  2. Vertical Differentiation: The concept of finding a mix between price and quality that can help differentiate one product from the next.
  3. Mixed Differentiation: Product differentiation that takes multiple factors into account.

How Do You Differentiate Your Product?

Learn about the demographics and psychographics of your target audience. Then, develop a product or service that caters to their wants, needs, interests, and values. Once you create your version of a product that suits a particular audience, it’ll stand out within the market.