March 15, 2023
We asked, you answered. Tripadvisor conducted a thorough qualitative and quantitative study of single-location restaurant owners to find out their top priorities. Here’s what we learned.
Restaurant owners really do it all. Seriously — one of the most common answers we hear in our surveys is, “All of the above.” But we wanted to know: Even while restaurateurs juggle a hundred (sometimes literal) plates in the air, what were their top priorities? What kept them up in the wee hours between closing duties and morning meal prep? And what does that mean for their business?
We talked to hundreds of restaurant owners to find out. Through a mix of quantitative surveys and qualitative interviews, we focused on single-location restaurant owners to find out what makes them tick.
Here’s what we learned:
For owners, everything starts and ends with happy customers. Meeting people and seeing smiles on their faces when they eat their food is the reason owners work so hard. They’re passionate about giving a high-quality dining experience to their guests and enjoy the creativity that comes with developing their restaurant’s menu. Said one restaurateur we talked to, “You have a passion, you want to do what you like to do. When you see people liking what you’re doing, it gives you motivation to do more.”
After all, nobody gets into the hospitality business because they like accounting. It’s all about the memories they can help create and the people they meet. At the end of a very long day managing everything from specials to staffing to ad hoc dishwasher repairs, owners want to create joy for others.
We don’t know anyone who works as hard as a restaurant owner, and the data proved that out.
Owners do a little bit of everything to make their restaurant run smoothly. The majority of owners manage their own marketing and business tasks for their restaurant on top of running front- or back-of-house operations. While owners prioritize reputation management, marketing, and social media as some of their top business tasks, the other most popular answer was still “All of the above.”
Tripadvisor Single-Location Restaurant Owner Study, February 2023
The day-to-day reality of running a restaurant doesn’t leave a lot of time to think big about growing the business. It’s also difficult to find time to learn new platforms or make the most of the tools they do have available to them, even if it can help save time in the long run.
Even in a “good” economy, restaurant margins are tight. Combine the lingering aftereffects of the COVID-19 pandemic, a looming recession, inflation, and staffing and supply issues, and it’s more challenging than ever to make ends meet. The brutal answer many restaurant owners gave us when we asked what their goals were for the future was: Survive.
With today’s competitive market, it’s more important than ever to focus on what you can control: A great dining experience. And that starts with a solid online presence that shows diners exactly what they can expect.
Most restaurants have one “thing” they’re known for, whether it’s pho chua like mom used to make or the fluffiest stacks of pancakes. But that’s only one piece of the marketing puzzle. Most restaurateurs recognize and try to encourage a mix of different diners to come into their restaurant — in particular, balancing their marketing efforts between locals and travelers.
On one hand, locals are more engaged and more likely to return. They may engage more with the restaurant on social media and provide word of mouth advertising. They might end up being repeat customers if they have a good experience.
However, tourists spend more money for a one-off vacation experience. On average, travelers engage in 3 or 4 in-destination activity categories and plan 30% of their budget toward them. Of these activities, 61% planned to dine out, making it the most popular in-destination activity. Travelers tend to plan their trips around meals and want to have the best possible experience.
As you think about your marketing mix, you’ll need to appeal to both groups in order to grow your business. Locals form the backbone — those loyal, repeat customers that come in again and again — but it’s tourists that can help drive more top-line revenue.
Owners know that reviews matter to customers as they choose a place to eat. When we asked travelers in a recent survey, 70% said that reviews were “extremely or very important” when choosing a restaurant, and 74% prefer the type of long-form reviews you can find on Tripadvisor.
But most owners don’t prefer to outright ask for a review. Three-quarters said they prefer customers leave reviews organically, regardless of the platform. That’s a missed opportunity — most diners don’t realize how much reviews can mean for your restaurant. But you don’t have to have your servers ask if you’re uncomfortable. Instead, let customers know on your website, social media, or in creative ways such as table signage.
Sources: Tripadvisor Single-Location Restaurant Owner Study, February 2023 Tripadvisor Economic Portrait of the Traveler Report, February 2023 Tripadvisor Power of Reviews Report
