A target market is the group of people that are most likely to buy what you are selling. To be a successful restaurant you must clearly understand your target market. One of the biggest mistakes a restaurant can make is trying to appeal to everyone. Narrowing down a restaurants audience will help to clarify goals and values, ultimately leading to a better customer experience. Here are some basic steps to begin narrowing your target market.
1. Understand your demographic
Consider who is most likely to dine at your restaurant. Take into account everything from the type of food to the restaurant ambiance and gain an understanding of the type of people you will attract. To target a specific group of people it is important to thoroughly understand them. Take into consideration everything from gender, race and income to clearly grasp the values of your target customers.
2. Research competition
Identifying local key competitors is key to staying ahead. If you know where customers are eating, you know what they find most appealing. This will tell you if your restaurant is in the right market and if people are still looking for what you have to offer.
3. Research the location
Determine whether or not your restaurant is in the right location to target your restaurant audience. A good rule is the 1-mile and 3-mile rule. The people that are within 1 to 3 miles of your restaurant are the ones most likely to become your targets. Are the people you are targeting your marketing efforts to found within this 1 to 3 mile radius?
4.Think about pricing
Is the pricing going to work for your target audience? The price range of your food will heavily influence the people you attract. If the people within the 1 to 3 mile radius of your restaurant cannot afford the food, it is likely that they will not be dining at the restaurant.
Customers are the key to a restaurants success. Of course, food and service have a major impact, but the most important component to a restaurants success is its customers. Being able to properly identify and communicate with your target market will determine a restaurants future path.