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A Study on Restaurant Marketing Strategies and
Influence of Social Media for Casual Dining
Restaurants
PRASHANT ARYA*
*Asst. Professor, Bharati Vidyapeeth Deemed to be University Institute of Hotel Management and
Catering Technology, Pune.
DR. AMITA N. KOLAPKAR**
*Asst. Professor, Bharati Vidyapeeth Deemed to be University Institute of Hotel Management and
Catering Technology, Pune.
ABSTRACT
The Decision making process of consumer’s have been influenced with the evolution of Social Media, the queries
of consumers regarding their needs, wants, desire and demand of product or services are being easily fulfilled
through various social media applications and websites. The role of technology through social media has resulted
in consumer’s expectation from a restaurant to transition from unexpected delightful food/beverage experience to
visually explored or reviewed experience, consumers who have earlier visited or been regular patrons of a
particular restaurant helps future consumer’s in decisions making, creating a desire to try out and experience the
viewed service experience. The study attempted has considered Management strategies for service business,
SWOT analysis & Marketing mix to analyse data through descriptive study. Response were collected through
personal interviews with owners and managers of 11 well established restaurants around Pune City. The study
will help us to understand what strategies and measures restaurant owners and managers take in order to market
their restaurants and how actively a restaurant uses Social Media.
KEYWORDS
Restaurant, Social Media, Consumer, Customer retention, Marketing Strategy, Management Perspective.
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1. INTRODUCTION
Sales for any restaurant is the only way they can remain in business, restaurants need to retain the previous
consumers and build relations with new consumers in order to survive in the current competent market condition.
Accordingly, a restaurant implements strategies to market their product and services on various platforms.
Social media marketing is one such platform that allows owners and managers to market their restaurant product
and services to massive social media users, the restaurants use digital marketing tool to make their restaurant and
its products stand out amongst its competitors, this may be possible via free or paid promotion. The theoretical
framework designed will allow us to confine our study specific to marketing strategies, and tools exercised by
restaurants on social media for marketing their restaurant.
1.1. Restaurant Marketing and Market Share
(Walker, 2011) “Every marketing plan must have a realistic goal for guest satisfaction, market share Figure 1,
sales and cost while leaving a reasonable profit margin. Goals and strategies are set for all areas of the restaurant;
the menu and the quality of each food item along with the service and ambience are all part of the marketing of a
restaurant.
Figure 1 Restaurant Market Share (Expected vs Actual Market Share)
Note the figure has been adapted from The Restaurant from Concept to Operation, Sixth Edition (2011), John R. Walker (Author), John
Wiley & Sons, Inc. Pages 423-424.
1.2. SWOT Analysis for restaurant marketing
Also SWOT analysis Figure 2 is a marketing techniques, which stands for Strengths, Weaknesses, Opportunities
and Threats”. A restaurant owner/manager are responsible to evaluate their outlet through SWOT analysis and
project the key areas where the restaurant will need to work on. When planning to do marketing, the restaurant
requires to evaluate their expenses thoroughly before investing in digital marketing, paid promotions and also
develop marketing techniques to influence the consumers from all available social media platforms.
0
50
100
150
Day 1,
Mon Day 2,
Tue Day 3,
Wed Day 4,
Thur Day
5,Fri Day 6,
Sat Day 7,
Sun Day 8,
Mon Day 9,
Tue Day 10,
Wed
Fair Market Share (Avg. No. of Customers) Actual Market Share (Avg. No. of Customers)
Figure 2 SWOT Analysis for Restaurants based on Marketing Techniques
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Note the figure has been adapted from The Restaurant from Concept to Operation, Sixth Edition (2011), John R. Walker (Author),
John Wiley & Sons, Inc. Pages 425.
Strategies for restaurant marketing is focused on what owner or manager in Pune consider their fair market
share and do they consider their market share is consistent or fluctuates.
Similarly, SWOT analysis will gives us the situational effects and overall framework of Pune city and
what amongst the points do the owners and managers agree to be their strength, weakness, opportunity
and threats.
1.3. Management Strategies for Service Businesses
1. Managing Service Differentiation
(Kotler, 2014) “Service marketers often complaint about the difficulty of differentiating their services from those
of competitors. To the extent that customers view the services of different providers as similar, they care less
about the providers than the price. Service companies can differentiate their service delivery in three ways:
through people, physical environment and process”.
Social Media platform provides restaurants with all three ways of service delivery platform which assist
consumers to differentiate any food & beverage product delivered by restaurant and its competitors, the owners
or manager of restaurant who promote their innovative offerings of product and services on social media gain a
temporary upper hand to targeted clientele and stand to hold a competitive advantage over competitors.
2. Managing Service Quality
(Kotler, 2014)“Hospitality products, quality is measured by how well customer expectations are met. The key is
to exceed the customers service quality expectations. These expectations are based on past experiences, word of
mouth and service firm advertising. If perceived service of given firm exceeds expected service, customers are
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apt to use the provider again. Customer retention is perhaps the best measure of quality: A service firm’s ability
to retain its customers depends on how consistently it delivers value to them”.
The expectations of consumers surfing on Social media is to get acquainted with what other consumers and
business have to offer. For, consumers searching for restaurants will have all factors such as past experience of
previous consumers, e-word of mouth through blogs, articles, comments and review, and advertising of
restaurants on various social media platforms.
3. Managing Service Productivity
(Kotler, 2014)“With their cost rising rapidly, service firms are under great pressure to increase service
productivity. They can train their current employees better or hire new ones who will work harder or more skilfully
or they can increase the quantity of their service by giving up some quality. The provider can ‘industrialize the
service’ by adding equipment and standardising production”.
Raw material and logistics price increase and inflation hampers managing productivity, the role of restaurant to
opt for the best possible option out of training staff, hiring skilled employee, compromising on quality or
industrializing the service and production methods.
4. Resolving Customer Complaints
(Kotler, 2014) “A Company cannot always prevent service problems, but it can learn from them. Good service
recovery can turn angry customers into loyal ones. In fact, good recovery can win more customer purchasing and
loyalty than if things had gone well in the first place. Therefore, companies should take steps not only to provide
good service every time but also to recover from service mistakes. To have effective complaint resolution,
managers must empower frontline service employees”.
Restaurant owners/managers should persuade employees on customer interaction and conduct empowerment
training on authority and responsibilities shared within employees in establishment to meet customer needs in
service. Also, comment cards and guest feedback cards should be sincerely presented to consumers and request
them for genuine suggestions and recommendations to improve and eliminate any service gaps felt by consumer.
Social Media comments and reviews should also be responded by the owners/managers on all available online
platforms.
5. Managing Employees as Part of the Product
(Kotler, 2014) “In hospitality industry employees are a critical part of the product and marketing mix. In
restaurants without a human resource manager. The manager must hire friendly and capable employees and
guests. Even minor details related to personnel policy can have a significant effect on the product’s quality”.
The managers should provide their new and current employees with all details related to the organization basic
details, standard operating procedures, house rules and policy followed by the restaurant.
6. Managing Perceived Risk
(Kotler, 2014) “Customers who buy hospitality products experience some anxiety because they cannot experience
the product beforehand. One way of combating concern is to encourage the client to try the hotel or restaurant in
a low-risk situation. Providing food and beverage complimentary to prospective clients in hope that this exposure
will encourage him/her to recommend the hotel”.
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Restaurant can introduce and promote early birds option on outlet timings for customers who consider price factor.
Providing complimentary meals to prospective corporate clients and group bookings guests to confirm and
showcase the host on food quality, variety and service quality.
7. Managing Capacity and Demand
(Kotler, 2014) “Managers have two major options for matching capacity with demand: Change Capacity or
Change Demand.
Capacity Management – A unit manager is responsible for matching capacity with fluctuations in short-term
demand. The techniques presented in this section assist in managing short term demand.
- Involve the customer in Service Delivery system
- Cross-Train Employees
- Use Part-time employees
- Rent or Share extra facilities and equipment
- Schedule downtime during periods of Low Demand
- Change the service delivery system”.
Demand Management – “All successful hospitality businesses become capacity constrained. Capacity
management allows a business to increase its capacity, but it does not prevent situations where demand exceeds
capacity. The following are some ways to manage demand.
- Use Price to Create or Reduce Demand
- Use Reservations
- Overbook
- Revenue Management
- Use Queuing
a. Unoccupied time feels longer than occupied time.
b. Unfair waits are longer than equitable waits
c. Uncertain waits are longer than known, finite waits
- Shift Demand
- Create Promotional Events”.
(Kotler, 2014) “Consumer stand in the centre. Figure 3 The motive is in creating value to clients and increase
profitable client relation. Guided by the marketing strategy, the restaurant designs an integrated marketing mix
made up of factors under its control – Product, Price, Place & Promotion (the four P’s). To find the best marketing
strategy and mix, the restaurant engages in marketing analysis, planning and implementation and control. Through
these activities, the restaurant watches and adapts to the actors and forces in the marketing environment (Social
Media).”
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Figure 3 Managing Marketing Strategies and Marketing Mix
Note the figure has been adapted from Marketing for Hospitality and Tourism, Sixth Edition (2014), Philip R. Kotler (Author),
Pearson Education Limited. Page 109.
2. LITERATURE REVIEW
In their study, Marketing Strategies for fast-food restaurants: A customer view ‘Ali Kara Erdener Kayanak, Orsay
Kucukemiroglu’ implicate managerial implications, they emphasize the differences between the perceptions and
preferences of consumers in two culturally same nations (Canada & USA). The Study shows many factors
influencing the consumer in choosing a fast-food restaurants and differences between consumer’s preferences for
fast food restaurant are related with age group.
In another study, Social Media Use in the Restaurant Industry: A work in progress ‘Abigail M. Needles & Gary
M. Thompson’ state Social Media influences restaurant operations, their marketing promotions, customer
relations and system of appointing new employee. Social media has changed the restaurants managers and
owner’s perception towards new challenge and opportunity of providing customers delighted experience and
value based on pricing.
Also, in the study of Customer Retention in Fast Food Industry. ‘Usman Ali Warraich, Nawaz Ahmed & Faizal
Kadeer Qureshi’ states food has been a requirement for every being and a customers dine out habit in any
restaurant is due to various reasons. The customers assess several characteristics in their heads before choosing
to dine-in in a restaurant.
‘Ivan Gurhananda and Harimukti Wandebori’ in their study Strategic Management for Restaurant Business (Case
Study of Lawangwangi Café) states that in order to achieve the restaurant strategy, the research undertaken was
with aim to measure the service quality to determine the level of customer satisfaction which shows the gap
between customer expectation and service given in Lawangwanfi Café.
Further, Social Media Marketing in India: A paradigm shift in marketing innovation. ‘Leny Michael’ states
Marketers are upgrading themselves to avail new opportunities on social media platform by making creatives on
social media sites to increase their reach and stay connected with the market.
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In his study, Customer Retention Strategies Adopted by Standalone Restaurants in Pune and Its Benefit to the
Restaurant ‘Suraj M.’ states that retaining the customer is a top priority for any enterprise, and the cost of retaining
the customers keep on increasing, thus making a business in need to develop new strategies to retain the
prospective clients.
Also in their research, Social Media Marketing and Restaurants ‘Suvarna Sathe & Mahesh Randhave’ state for
successful restaurant business operations in a highly competitive market, it is very important to have a perfect
marketing policy. It’s common nowadays to check the website of a restaurant before being there to check reviews
and feedbacks on menu offered, services, facilities etc.
‘Tammira Lucas, Chad C. Sines’ in their study Marketing Strategies to Increase Sales in Small Family-Style
Restaurant Businesses state business owners understand the importance of social media as a marketing tool and
any business which does not utilize marketing strategies on social media suffers straight on their sales.
‘Suraj Sudhir Bidwai, Mayank Vinod Asopa & Pooja Darda’ in their study A Review on Use of Social Media
Marketing in Restaurant Industry states on the various different social media websites and application available
and the prominent use of social media by current generation and how restaurant owners and managers are now
using the social media platform to increase their customer reach.
A study on, Factor affecting Customer Retention in the Restaurant Industry: Moderating Role of Restaurant
Location ‘Ammar Ahmed, Sanober Salman Shaikh, Rafat Naseer & Muhammed Asadullah’ state by their result
that restaurant location impacts a restaurant’s service quality and pricing which effect the customer retention.
How a restaurant should plan on recruitment is also covered in their study.
Another study, Business Intelligence for Designing Restaurant Marketing Strategy: A Case Study ‘Karina
Kusuma Halim, Siana Halim, Felecia’ state customers dining habits keep on changing and a restaurant should use
dashboards to continuously review their menu, activity and promotions. This may or may not have an effect on a
restaurants profit.
In their study, Factor affecting Customer Retention in the Restaurant Industry ‘Ammar Ahmed, Rafat Naseer,
Muhammed Asadullah & Hadia Khan’ state organization focus on providing their customers with quality product
at a fair pricing with a mind-set to increase their revenue. Restaurant try to analyse which are the factors that will
assist them in customer retention.
‘Jinsoo Hwang, Kwang Woo Lee, Dohyung and Insin Kim’ in their study Robotic Restaurant Marketing
Strategies in the Era of the Fourth Industrial Revolution: Focusing on Perceived Innovativeness state Results
show innovation has a significant impact on customers approach and desire. The desire effects a customer’s
aspiration to pay higher price.
In the study, Improve Customer Retention through Service Quality Attributes in the Restaurant Industry of
Pakistan. ‘Nazish Baladi, Paras Bashir et al.’ state retaining the consumers is important for the restaurants,
retention of old customers is easier than new customers and a loyal patron is benefits a restaurants income and
profits.
‘Irshad Ali, Naghma Azhar, Mohd Tariq Jamal & Shahzar Ali Khan’ in their study Role of Rise in Social Media
on Travel and Tourism Industry shows internet and websites have changed the way tourism is promoted nowadays
and how social media as a tool has assisted in tourism marketing.
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2.1. OBJECTIVES OF THE STUDY
1. To gain familiarity with Marketing strategies adopted by restaurants.
2. To explore the Marketing Strategies - In general and on social media variables practised by Restaurant to
influence customers.
3. To evaluate the operational strategies adapted by restaurants in relation to the variables.
2.2. HYPOTHESIS
H0 – Social Media has assisted restaurants to adapt and implement marketing strategies effective for customer
loyalty and retention
H1 – Social Media has not assisted restaurants to implement marketing strategies effective for customer loyalty
and retention.
2.3. LIMITATIONS
The study conducted was limited to the area of Pune City.
The study has considered only the restaurants perspective on Social Media Marketing.
The study has been conducted through personal interviews with owners and managers
2.4. RESEARCH METHODOLOGY
The study was conducted with the help of Non-Probability purposive sampling method
Data Collection was done by Google Forms and Interviews, created and shared with 11 Restaurant
owners/managers from Pune City.
Statistical analysis of data acquired was done to understand the restaurant perspective on customer
retention.
Histogram (Pareto Chart) and Pie-Charts is used to analyse the data.
3. RESEARCH DATA ANALYSIS AND INTERPRETATION
The study is evaluated in descriptive research design, interview based on questionnaire on restaurant perspective
on influence of social media in marketing strategies and customer retention in Pune city. Interview were
conducted with restaurant general managers and owners, on one-on-one basis to avoid gaps. To present data
collection the research sample size is of 11 restaurants in Pune city. To define the most significant strategies and
perspectives of restaurant owners/managers pareto chart will be used to help us analyse the most significant
variable.
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3.1. Restaurant Preference for Social Media Platform
Figure 4 Social Media Platform preferred by restaurants
Figure 4. Restaurant’s preference for social media platform to highlight and promote their product and services
for reaching to customers show that all 100% restaurants use Facebook, 91% restaurants use Instagram , 55%
restaurants use WhatsApp, 9% use Twitter and 9% use YouTube.
3.2. Restaurant Preference for Social Media Food and Beverage Delivery Platform
Figure 5 Restaurant Preference for Social Media Food and Beverage Delivery
Figure 5. Social media platform used by restaurants and customers to deliver any restaurants products and services
to customer’s request location shows 82% restaurants using Zomato, 64% restaurants using Swiggy and 18%
restaurants do not have any specific food and beverage delivery system use Dunzo.
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3.3. Restaurant Perspective on Marketing the Products and Services
Figure 6 Restaurant perspective on Marketing Products and Services
Figure 6. Questioning the managers/owners on their perception to the statement and do they include marketing –
Menu of the outlet products served by the restaurant
The quality of product produced and presented to their consumers
The Service procedure used to deliver their product to the consumers
The restaurant design and ambience
91% restaurants owners and managers strongly agrees and 9% agree to consider menu, quality of food, service of
food and beverage and ambience while planning marketing for the restaurant.
3.4. Market Share - Restaurant Mangement Perspective
Figure 7 Market Share – Restaurant Management Perspective
As stated by Figure 1 the restaurant market share depicts a restaurant expected and actual share, to understand the
same the restaurant owner/managers were asked on what number of customers do they expect to count it as a
good day for business Figure 7. 45% restaurant owners/ managers have stated they require 100-150 customers,
27% restaurant owners expected 150-200 customers, 9% restaurant owner expect minimum 50 customers and
18% require more than 200 customers to call it a good day for business.
3.5. SWOT Analysis of Restaurant
SWOT Analysis of the 11 restaurants have assisted to understand what owners/managers perceive while
marketing their restaurant and what strategies do they focus while planning their day-to-day business.
Strength
Strongly Agree
91%
Agree
9%
Restaurant perspective on Marketing Products and Services
Strongly Agree Agree Neutral Disagree Strongly Disagree
9%
46%27%
9%
9%
Market Share
Min 50 Customers 50-100 Customers 100-150 Customers
150-200 Customers 200-250 Customers More than 250 Customers
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Figure 8 Strength (Restaurant Management Perspective)
Figure 8. Represents the restaurants owners/managers to point at their restaurants strengths and is illustrated as
the most influential factors positively impact the restaurants sales (strength) in 11 restaurants by descending order
is Brand Loyalty for 91% restaurants, Guest Loyalty for 73% restaurants, Premium Location for 64% restaurants,
Guest first approach eg. Suggesting for 56% restaurants, Close to customer vicinity for 45% restaurants, highly
rated Online for 36%, Great Interior Design for 36% and Unique dishes and services for 36%, Local Value
Offering and Part of Community for customers for 27% restaurants, Pricing Power for 18% and Local Staff for
18% restaurants and Better Local Knowledge of Food and Beverage for 9% restaurant.
Weakness
Figure 9 Weakness (Restaurant Management Perspective)
Figure 9. Represents the restaurants owners/managers to point at their restaurants weakness that they observe and
is illustrated as the most influential factors to negatively impact the 11 restaurants, customers and sales (weakness)
by descending order i.e. New Opening Happening for 64% restaurants, Existing Competitors for 46% restaurants,
High Running Cost for 27% restaurants, Similar Cuisine types for 18%, High Supplier Cost for 18%, No
Marketing team for 18%, Not offering online ordering for 18%, Small market share for 18%, Limited menu items
for 18% and Access to restaurants funding for 18% restaurants respectively and Small local population for 9%
restaurants. Out of the 11 restaurants none feel Poor Online presence and No brand awareness as their weakness.
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Opportunities
Figure 10 Opportunities (Restaurant Management Perspective)
Figure 10. Represents the restaurants owners/managers to point at their restaurants opportunities that they feel
can be most influential factors to positively impact the 11 restaurants customers and sales (opportunities) by
descending order Introducing new menus and Training their employees more effectively for 82% restaurants,
Social Media Campaigns and Increase customer experience for 73% restaurants, Grow local brand for 64%,
Increase Local guests for 64%, Run special offers for 64% and expand locations for 64% restaurants, Reach wider
audience for 55% and More personalized guest experience for 55% restaurants, Offering Online ordering for 45%
and Increase social media reviews 45% restaurants. Out of the 11 restaurants none feel Reducing the menu Price
as their opportunity.
Threats
Figure 11 Threats (Restaurant Management Perspective)
Figure 11. Represents the restaurants owners/managers to point at their restaurants threats that they observe and
is illustrated as the most influential factors to negatively impact the 11 restaurants (Threat) by descending order
i.e. Economic downturn for 73% restaurants, Rising fixed cost for 45%, Bad rating and reviews on site for 45%
and Competitors taking customers for 45% restaurants respectively, Forced Closing for 36%, Loosing VIP and
High value customers for 36% and lack of differentiation for products and services of a restaurant with its
competitors for 36% restaurants, Guest have less income for 27%, Lack of good suppliers for 27%, Lack of trust
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from customers for 27% and Bad local weathers for 27% restaurants respectively, Cancellation of Near-by events
for 18% restaurants and Home delivery option for 9% restaurants.
3.6. Restaurant Management Strategies for Customer Service
1. Managing Service Differentiation
Figure 12 Management by Service Differentiation through Social Media
Figure 12. Does Social Media provide the 11 restaurants to temporarily differentiate their products and services
effectively compared to their competitors. 64% restaurants Strongly Agree, 27% restaurants Agree and 9%
restaurants stand Neutral in Managing the service differentiation.
2. Managing Service Quality
Figure 13 Measuring Service quality for Restaurants through Social Media
Figure 13. Does social media assist the 11 restaurant to measure service quality on how well they have met the
customer’s expectation 55% restaurants stand Neutral, 36% restaurants Strongly Agree and 9% restaurant Agree
to the statement.
Strongly Agree
64%
Agree
27%
Neutral
9%
Service Differentiation through Social Media
Strongly Agree Agree Neutral Disagree Strongly Disagree
Strongly Agree
36%
Agree
9%
Neutral
55%
Service Quality customer expectation
Strongly Agree Agree Neutral Diagree Strongly Disagree
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3. Managing Service Productivity
Figure 14 Managing Service Productivity (Restaurant Management Perspective)
4.
Figure 14. To manage and increase the production and productivity of a restaurant, what strategies would the 11
restaurant owners/managers opt are in descending order i.e. Training their current employees by 91% restaurant
owner/manager, Hiring Skilful employees by 45% restaurant owner/manager, Increasing the quantity by reducing
the quality of production by 18% restaurants and Industrialising the service and equipment’s by 9% restaurant
owner/manager.
5. Resolving Customer Complaint
Figure 15 Resolving Customer Complaint (Restaurant Management Perspective)
Figure 15. How a restaurant should resolve a customer’s complaint, 73% restaurants agreed through collecting
genuine guest feedback, 45% restaurants agree to do so by empowering their staff member to resolve complaint
and 36% restaurant state by replying on social media reviews and comments are the best way.
6. Managing Employees as Part of the Product
Figure 16 Induction and Training of Frontline staff on SOP and policy (Restaurant Management Perspective)
100%
Induction and Training of Frontline Staff
Strongly Agree Agree Neutral Disagree Strongly Disagree
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Figure 16. Providing Induction and training of the frontline staff who will be aware of all the aspects of restaurant
services, Standard operating procedures and policy, all the 11 restaurants (100%) strongly agree to the statement.
7. Managing Perceived Risk
Discounts and Offers via Social Media Platform
Figure 17 Discounts and Offers for restaurant marketing on Social media platform
Figure 17. Giving discounting and offers to customers during reservations and booking on social media or during
billing/checks are a strategy to retain and market a restaurant, 36% restaurants stayed Neutral to the statement,
27% restaurants Strongly Disagree, 18% restaurants Disagree and 9% restaurants Strongly agree and 9% Agree.
Complimentary and Early Bird offers on Food and Beverage for Prospective Clients
Figure 18 Complimentary Food and Beverage to Prospective Clients
Figure 18. Complimentary and early bird offers to prospective customers who may provide restaurants with future
business, 36% restaurants Strongly disagree, 18% restaurants Disagree, 18% restaurants Strongly agree, 18%
restaurants Agree and 9% restaurants stayed Neutral.
Strongly Agree
9%
Agree
9%
Neutral
37%
Disagree
18%
Strongly
Disagree
27%
Discounts and Offers on Social Media
Strongly Agree Agree Neutral Disagree Strongly Disagree
Strongly Agree
18%
Agree
18%
Neutral
9%
Disagree
18%
Strongly
Disagree
37%
Complimentary and Early Bird to Prospective Clients
Strongly Agree Agree Neutral Disagree Strongly Disagree
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8. Managing Capacity and Demand
Restaurant Product Delivery Process Delivery and Efficiency
Figure 19 Restaurant is efficiency in Product and Process delivery
Figure 19. Does the restaurant owner/managers feel that their restaurant is 100% efficient in product and process
delivery system, all the 11 restaurants have agreed by stating Yes.
Capacity Management Strategies of Restaurant
Figure 20 Capacity Management Strategies of restaurants
Figure 20. To meet the unexpected surge in customers on a short staff or a low business day the owners/managers
of the 11 restaurant use the following capacity management strategies in descending order, Cross training the
employees done by 55% restaurants, using part-time/casual staff and Schedule downtime during low business
done by 36% restaurants, Renting or sharing facilities with other business and Changing the Service delivery of
food and beverage by 9% restaurants.
Demand Management Strategies of Restaurant
Figure 21 Demand Management Strategies of restaurants
100%
Product and Process Delivery Efficency
Yes No
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Figure 21. To manage the demand of restaurant, the following demand management strategies are used by the 11
restaurants in descending order, Reservations for tables followed by 82% restaurants, queuing of customers by
64% restaurants, using revenue management system by 36% and create promotional events followed by 36%
restaurants, Price to create/reduce demand and overbooking tables followed by 27% restaurants respectively and
shifting the demand to other day/outlet followed by 18% restaurants.
3.7. Marketing Mix by Restaurant Perspective
Figure 22 Most Influential Marketing Mix by restaurant perspective
Figure 22. As per the restaurant owners/managers based on their marketing analysis, planning, implementation
and control the focus of the 11 restaurants on the marketing mix is stated in descending order, Product (food and
beverage) for 82% restaurants, Place (Access, Location, Delivery Service) for 36% and also People (Customer,
Employees, Social Interaction, Role and Script) for 36% restaurants , Promotion (Marketing, Advertising) for
27% restaurants, Price for 27% restaurants, Process (Service Design, Standardization, Customization, Operational
Efficiency) for 9% restaurant, Physical Evidence (0%) was not selected as influential in any of the 11 restaurants.
3.8. Paid Promotion and Services on Social Media
Figure 23 Social Media (Paid Promotion and Services) usage
Figure 23. Shows using Social Media applications and tools to market and promote the restaurants products (food
and beverage) and services through paid promotion 55% restaurant owners/managers said no to paid promotions
and 45% restaurant owner/managers said yes to using paid promotions on social media.
Yes
45%
No
55%
Paid Promotions on Social Media
Yes No
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Figure 24 Average Interpreted Rating by Likert Scale
Mean
Standard Deviation (SD)
Standard Error (SE)
3.9
1.102
0.450
Sr. No
Questions
Average
Interpretation
1
Statement - "The Menu, Quality of Food Item, Service and
Ambience should be considered while planning the Marketing of
a restaurant"
4.9
Strongly
Agree
2
Do you feel social media assists the restaurant temporarily to
differentiate the product offerings and services from other
restaurants?
4.6
Strongly
Agree
3
Does Social Media help you to measure quality on how well you
have met customer’s expectation?
3.8
Neutral
4
Does the restaurant conduct believe in providing induction and
training of frontline staff on details, policy and SOP adapted by
the restaurant?
5.0
Strongly
Agree
5
Do you consider giving discounts and offers via Social Media
platform?
2.6
Disagree
6
Does the restaurant management provide complimentary food
and beverage or early bird offer to prospective clients?
2.6
Disagree
FINDINGS
Facebook and Instagram are the preferred social media platform to market their restaurant and its products and
services. Zomato and Swiggy are the preferred social media delivery apps. Restaurants strongly agree to market
their products and services and consider them while planning their restaurant marketing. Market Share to account
a good day for business, the restaurants expect at least 100-150 customers. SWOT analysis of the restaurants
defines guest/brand loyalty and location as main strength, New opening and existing competitors as their main
weakness, introducing new menus and training the employees as their main opportunity and economic downturn
and rising fixed cost as their main threats.
Strategies on Customer service by restaurant perspective–
- Restaurant strongly agree that Social Media assists restaurants to temporarily differentiate the products
and services from their competitors
- Restaurant stayed neutral on social media assistance to measure quality and customer expectation.
- To manage productivity, the restaurant train their current employees and Hire skilful staff.
- To resolve customer complaints collecting genuine guest feedback is the most preferred variable.
- Restaurant strongly agree to engage frontline staff in induction and training with SOP and policy of their
restaurants.
- Perceived risks by offering discounts and offers on social media, the Likert scale interprets restaurant to
disagree.
- Perceived risks by offering early bird and complimentary food to prospective clients, the Likert scale
interpret restaurants to Disagree.
- Managing Capacity and demand, cross training employees and using part-time/casual staff is most
preferred way for capacity management. Reservation and queuing of customers is the most preferred way
to handle demand management.
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Strategy most influential for restaurants as per marketing mix is their Product (Food & Beverage).
Using social media paid services for marketing their restaurants states 55% restaurants used paid services and
45% to disagree to use paid services for marketing.
CONCLUSION
In Conclusion, restaurant strategies and marketing techniques have evolved and social media is assisting
restaurants to market their products and services instantly that too to a large number of audience. Social media
has positively assisted the restaurant to differentiate their products from their competitors but restaurants neither
agree or disagree to social media’s assistance in measuring service quality or to understand their customer’s
expectation. Most restaurant disagree in providing customers with discounts and offers and providing offers to
prospective clients via Social Media. Also, paid services of social media has a mixed result where most restaurant
deny using paid promotion method to market their restaurant on social media. In strategy by restaurant marketing
the menu, food, service and ambience is followed by every restaurant, market share of the restaurant fluctuates
throughout the week daily, but on average restaurant need minimum 100-150 customers to reach their break-even
and forecasted sale. To manage productivity, the restaurants priority is to train their current employees and
secondly hire skilful staff, strategy to resolve customer complaints are done through genuine guest feedbacks and
in few restaurants through empowering the staff to resolve complaints and replying on reviews and comments on
social media platform. Another, strategy is to brief frontline employees on policy, SOP adapted by all the
interviewed restaurants. Cross-training of employees, using casual staff and scheduling downtime during low
demand are the prominent capacity management strategies and using reservation and queuing during high demand
for demand management strategy. Product stand as the most influential marketing mix for all restaurants. The
study of Hypothesis (H1) stands correct as Social Media has not assisted restaurants to implement marketing
strategies effective for customer loyalty and retention.
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