Why Independent Restaurants Are Witnessing Better Biz After Revamped Approach

Fine Dining
According to a recent survey by RestaurantDive, 65 percent of consumers prefer local restaurants over chains.

By Nusra , Editor

01 Nov 2022 | 19 min read

Independent restaurateurs have become smarter, more resourceful, more adaptable, and often humbler since the pandemic started. As we enter a new phase of challenges, they have new tools to adapt to the obstacles that they continue to face, with better marketing, more nimble operations, technological advances, a better understanding of their customers, and sometimes a new perspective on what they want from their restaurants and from their lives. Independent owners have got out of their comfort zone.

Both traffic and revenue growth among independent restaurants is outperforming chains according to a report by foodservice consulting firm Pentallect Inc, indicating a shift from historical patterns when chains were driving growth across the industry. 

According to a recent survey by RestaurantDive, 65 percent of consumers prefer local restaurants over chains. In the past three months, 27 percent of consumers have dined at a local restaurant. 72 percent of respondents have spent money on local restaurants, and 65 percent say they feel better about buying from a local restaurant than from a chain. The pandemic that showed a major hit 

One of the most significant ways that independent restaurants have evolved is in how they reach their existing and potential customers. Many now sends regular emails to their customers announcing celebrations while others reached out to customers during lockdown with virtual classes, for which customers picked up packaged food-and-wine pairings and then were walked through them via Zoom meetings. The innovation that was made possible in standalone restaurants were immense and now are operating businesses with much more confidence. 

Technological advancement

An ethernet cable connecting kitchens is rather old technology, but independent operators have definitely upgraded their tech stacks in many ways. QR codes were a technology that appeared to have come and gone before the pandemic, but they were brought back to give guests contactless menus.

Customers, especially those in the younger generations, are on their phones anyway and don’t consider that kind of technology to be impersonal, especially since humans are still working the room and making sure everyone’s attended to. 

“We, as independent restaurant owners, became more technology focused with an online food ordering model, where customers can seamlessly order from the website/app and opt for contactless delivery. The efficiency increased with the aim of sustaining in the industry while making sure the best is offered or delivered. The POS has become a single management system for an enhanced all-round performance - effective transactions, inventory management, etc; reducing labour costs through integrated workforce management tools. Kitchen Staff is now more efficient and independent than ever, we are now making in-house sauces, breads etc which reduces the outsourcing dependency and also improves the quality of the product. Needless to say, future of independent restaurants is bright with innovative solutions," commented Swadeep Popli, founder & CEO of The Chatter House. 

Flexibility matters

Chain restaurants have strict standards they need to meet in order to ensure continuity across their branches. While they may be able to remove an ingredient from the dish selected, they’re fairly limited when it comes to allowing guests to make menu alterations.

Probably the biggest change in operations since the pandemic started is that restaurants that never would have thought of doing off-premises dining are doing it now. Chefs no longer insist that their food is intended to be eaten in a dining room. 

“We have to design restaurants in a way that we know how to operate seamlessly- whether it’s staff or resource management, every corner of the restaurant holds equal importance. The losses beared during the lockdown has now evolved the thought process of restaurants. They now need to be designed spaciously to the covid guidelines, the technology has taken over in terms of QR codes, R&D has been witnessed in upcoming restaurants for seamless process. It’s been a learning process, and the restaurants are now prepared to face any such hard time better with well planned resources,” Manish Sharma, brand owner and CEO of Ivoryy Aviary and Drops shared. 

Can act quickly on customer feedback

If you make a suggestion to a chain restaurant, it will probably take months to reach the person in charge and if changes are discussed, it could take a very long time to implement them. With an independent restaurant, changes can be made almost immediately. Say for example there’s a cocktail one would like to see on the menu, or that some flowers might brighten the place up a bit, an independent restaurant is far more likely to take the suggestions seriously and they can act on them almost immediately.

“The pandemic has given a chance to reassess how to work in individual restaurants and understanding the bigger picture has helped independent restauranteurs to achieve their goals,” Manoj Kumar Pandey, partner chef at The Piano Man stated.

“I personally have started experimenting with new brands in terms of cafe of fine-dine. And surprisingly, although they dont have a brand back support, few of the standalone restaurants are simply spectacular. You see most of the time most prestigious awards are bagged by these standalone restaurants. There has to be some reason for the same,” Stefy Singh, food enthusiast and a home chef from Delhi commented. 

Consumers said independent restaurants were much more likely to be rated highly for being special, community oriented and offering personalized service. Independent restaurants were also far more likely to be perceived as sharing consumers’ values and offering quality food and better service. 

The pandemic in general, and the period of lockdown in particular, has been hard for chefs and restaurateurs, many of whom had been so accustomed to working constantly that they didn’t know what to do when everything stopped. That shutdown turned out to be a good thing for independent restaurateurs. “We are surely killing it and back with a bang,” Owner of Cafe Repertwahr happily exclaimed. 

Independent restaurateurs have become smarter, more resourceful, more adaptable, and often humbler since the pandemic started. As we enter a new phase of challenges, they have new tools to adapt to the obstacles that they continue to face, with better marketing, more nimble operations, technological advances, a better understanding of their customers, and sometimes a new perspective on what they want from their restaurants and from their lives. Independent owners have got out of their comfort zone.

Both traffic and revenue growth among independent restaurants is outperforming chains according to a report by foodservice consulting firm Pentallect Inc, indicating a shift from historical patterns when chains were driving growth across the industry. 

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