As consumers become more aware, all Chinese restaurant operators should see these three changes!

Thirty years in the east, thirty years in the west. The epidemic has completely reshaped my country's consumption scene. In the post-epidemic era, as one of the industries most affected by the epidemic, the catering industry has seen earth-shaking changes in its consumers' consumption habits and consumption scenes. This article focuses on the digital operation of the catering industry and points out the huge changes in the catering industry in public and private domain operations.

Winter has passed and spring has come. In the past three years, it has not been easy for people in the catering industry to persevere, but it is gratifying that the warm spring of the catering industry has returned.

With the release of the "New Ten Measures", the three-year epidemic prevention and control has come to an end. The overall national economic environment has improved, and Chinese catering has also rebounded as a whole. The booming customer flow during the 2023 Spring Festival has brought an exciting "good start" to the catering industry. Hongcan Big Data predicts that by the end of 2023, the market size of Chinese catering will increase to more than 300 billion yuan.

However, although the catering industry has recovered rapidly, things have changed over time. The epidemic has completely reshaped my country's consumption scene and profoundly changed the consumption habits of Chinese consumers. We have seen that consumers are more pursuing the symbiosis of cost-effectiveness and quality, the full integration of online and offline, and the greater integration of innovation and tradition. Against this background, Chinese catering needs to re-examine these three changes in the industry after the epidemic.

1. Digital Operations

The impact of the three-year epidemic on offline restaurants is self-evident. At the same time, facing the pressure of rising rent and labor costs year by year, restaurants have a strong demand for cost reduction and efficiency improvement. On the other hand, under the cultivation of terminal takeaway channels, the digitalization of the C-end of the catering industry has been fully popularized, and has forced restaurants to upgrade digitally.

Focusing on the digitalization of users, building a marketing position that combines online and offline integration, omni-channel and cross-scenario independent operation with platform ecology has become an important strategy for more and more large-scale Chinese formal dining companies.

However, they are still at the first stage of digitalization, namely, digitalization of business systems. Its main applications include but are not limited to cashier, membership, ordering, reservation, cost management, supply chain, headquarters management, etc. This greatly improves the efficiency and manageability of the company at the store operation level. However, in the process of using the digitalization of the business system, a large amount of business data is generated, including but not limited to revenue, membership, dishes, costs, expenses, procurement, etc., but they have not been able to achieve further digitalization.

The reason for the failure to achieve deep digitalization lies in cognitive bias. First of all, the main function of the digital business system is to help enterprises improve the efficiency of daily operations and management, maximize the use of automated operations, reduce manual intervention, and reduce costs. It relies on highly reliable, cost-effective software and hardware products and support services to ensure the uninterrupted and high availability of business systems.

However, the main goal of digital deep operation is to use various data generated by business systems, through professional operation, and with an effect-oriented approach, to realize the value of data analysis, operation, and strategy. It relies on industry experience, process optimization, best practices, and implementation.

Obviously, digital business systems (various software and hardware) are like (digital) highways, and digital deep operations are more like (various types of) transportation vehicles running on highways. Without highways, the transportation industry cannot develop; without transportation vehicles and services, highways will be useless.

Therefore, digital deep operation is the core part of the current management of Chinese restaurants. It can effectively link various departments and effectively promote the sustainable development of enterprises in a positive direction. Digital deep operation means that in the operation process, it is separated from the traditional way and uses various data and intelligent tools to manage, formulate content, summarize and analyze, and plan strategic directions.

In-depth operations based on data models, including precision marketing, birthday marketing, loyalty marketing, consumption frequency promotion, etc. For example, based on member data, identify the group whose birthday is about to come and send birthday wishes in advance; pay attention to the member activity curve and churn inflection point, identify the best wake-up time for members, and automatically initiate activities, etc.

2. Public domain operations have become an important means of attracting new customers

The public domain is an important entrance for catering companies to reach customers. Especially for large-scale Chinese formal dining companies, the improvement of private domain operations also requires the interconnection with the public domain platform to achieve the connection between online and offline, so as to facilitate the integrated operation of members. Through the survey, it was found that the proportion of new expansion in the public domain operation of large-scale Chinese formal dining is second only to natural visits.

However, many companies still have misunderstandings about public domain operations. Many restaurant companies also said that the cost of public domain operations is very high (the proportion of platform commissions is getting higher and higher). Although the public domain traffic is very considerable, it is difficult to bring the profits required for sustainable operation to the company. It is more of a tool for attracting traffic and brand exposure. Although public domain operations are necessary to a certain extent, they are not a sufficient means of operation.

But it is indeed very helpful for catering companies to attract new customers. The current consumer population in China is changing:

1. First, with the rise of the post-90s and post-00s, this group of people has become the backbone of current consumption, and the population structure is changing;
2. Second, this group of Generation Z people were born on the Internet, grew up with new media, are accustomed to online consumption, have their own set of judgment mechanisms, and their communication channels are changing;
3. Third, the content of communication is changing. In the past, we used "delicious" and "authentic" to praise a restaurant. Now, WeChat groups are full of new praise words such as "ceiling" and "YYDS".

Before promoting their restaurants, companies need to enter the world of young people and learn this "language" well in order to communicate effectively. With the changes in the new consumer population, traditional ways of attracting new customers are no longer effective, and companies need to attract new customers through public domain operations.

For public domain operations, Hongcan gave two suggestions in the "Catering Industry: 2023 Large Chinese Formal Dining Private Domain Operation White Paper":

First, the first basic stage of attracting new customers is to increase exposure, reputation, and characteristics;

Second, the second operational stage of attracting new customers is to create topics and carry out matrix communication.

3. Private domain operations have become a key measure for large Chinese restaurant companies to increase customer repurchase conversions

Online public domain platforms have effectively broadened customer groups and consumption scenarios, but the commission fees are getting higher and higher. Private domain traffic has the characteristics of sustainable free access and greater controllability, which helps restaurants to attract traffic at low cost, interact with users, accumulate loyal members, and achieve double growth in revenue and profits.

The public domain cultivates the consumption habits and mentality of users; the private domain means truly realizing the accumulation of user assets. Regardless of the entry point of each platform, in the end, the private domain business model always builds an operating position that is integrated online and offline, omni-channel, and has independent and controllable traffic for brands.

The difference between the two is that the private domain is a place that a brand directly owns and can repeat and reach customers at low cost or even for free.

The private domain is an important self-operated position and growth fulcrum. For catering companies, it is not a single channel to reach customers, but a growth platform that is customer-centric and provides omni-channel services online and offline.

The integration of online and offline, brand and channel, as well as the feedback and pull of public and private domains are important characteristics of future traffic operations. This is not only a deepening exploration of omni-domain operations, but also means that building a customer-centric omni-domain business position will become a necessary choice for catering companies.

However, many Chinese catering companies have given negative comments on private domain operations, believing that the overall private domain operation effect is far from expectations. The reason for such comments is that the companies still use relatively traditional private domain operation thinking and tools, which cannot stimulate the vitality of private domain traffic. In this regard, Weimob believes that companies should build and improve the following five systems:

1. System 1: Customer management system is the basic framework for the construction of the entire private domain system. In order to design clear management means and methods, and to use corresponding management tools, customers need to be clearly classified or grouped. Common user management systems divide private domain users into three categories, from shallow to deep: fans (group users), certified members (friends), and paid members. Then formulate corresponding management means, data collection plans, identification methods, marketing purposes, etc. for these types of customers;
2. System 2: Member rights system. The most intuitive, most effective and easiest to implement part of private domain operation is undoubtedly the member operation. With the continuous introduction of concepts such as payment members and friend members, members have become synonymous with private domains. Therefore, the member rights system has become the most important part of the five systems of private domain operation.
3. System 3: Precision marketing system. Every marketing action should not be arbitrary or random. Every marketing activity for private domain users has its inherent driving factors, namely: why do this marketing, why do this marketing for this type of user. Catering enterprise marketing should be data-driven, operation-driven, and event-driven;
4. System 4: Data analysis system, which is divided into financial report system and precise data analysis system. The financial report system is used for daily financial reconciliation and settlement, and the data analysis system is used for precise marketing support and strategic decision support;
5. System 5: Experience management system. It mainly includes post-consumption evaluation, consumer satisfaction survey and the construction of operation methods and processes for satisfaction improvement. It is essential for Chinese catering enterprises.

As the three-year "war against the epidemic" comes to an end, the entire industry is thinking about how to deal with the next risk? How to manage the public brand image and continue to attract new customers to the store? How to convert in-store customers into private traffic and continue to interact with them to improve customer stability? This has become a basic skill that all Chinese catering companies need to master.

Author: Editorial Department of Community Marketing Research Institute; Reviewer: lidaxia;

Source: Community Marketing Research Institute (ID: Community_Marketing), insights into community consumption