Running a small, independent business in today’s market can feel like learning to run a marathon. You start off feeling ambitious, buzzing, and excited to get started. The first couple of strides feel comfortable, but then reality kicks in. Soon, your lungs start cursing you, your legs start disobeying you, and the singular question begins to creep into your mind - "should I give up?" Most people won’t be able to reach the end of the race and inevitably give up. Will you?
This blog will give you some pointers on what steps you can take to get your business to the finish line. Specifically, we will focus on how you can utilise online reservation systems to your advantage by driving efficiency, improving customer satisfaction, and ultimately overtaking some of the larger competitors in this race.
The Competitive Landscape: Small vs. Big
Just like pro-athletics that can spend money on top-notch coaching and no-compromise nutrition, big chain restaurants have resources at their disposal that most independent restaurants simply cannot match. These resources allow more established restaurants to spend more on advertising, hire dedicated marketing teams and develop in-house technologies to streamline their operations. Some even have a cult-like following (go ahead and google Mcdonald's tattoo)!
Larger restaurants often have brand standards that employees need to follow religiously. The purpose of these brand standards is to ensure that customers have a "good customer experience". However, by instilling these brand standards, large businesses often end up compromising on genuine human interactions.
I have seen this first hand whilst working for Holiday Inn. Holiday Inn has strong brand standards which are similar across all hotels. Whilst customers were happy with the service, I found that I developed more genuine relationships once I started ignoring parts of the standards and decided just to be genuine and interested. And it works! So much so that I’ve been mentioned in a book by an author who I frequently served at the hotel.
Where chains can struggle with personalisation and the human element of service, smaller businesses can excel. Independent restaurants have an excellent opportunity to provide a personable experience. They can provide a unique dining experience, a sense of community and most importantly, genuine human interactions. Think back to your own experiences comparing the experiences you've had in a larger restaurant in comparison to a family-owned restaurant.
Where independent restaurants have the potential to offer more personalised and memorable customer service, there is still much that can be done to stay in the race. One major way to achieve this is through online reservations.
Why are Online Reservations Key for Restaurants
We are now in the digital era where consumers expect to be able to make bookings quickly and easily. With people now accustomed to making everything from holiday reservations to hair appointments online, restaurants must offer the same convenience. Here is why supporting online reservations matters:
- Improved Customer Experience: Allowing customers to book a table online immediately boosts their experience. Customers can quickly reserver a table without having to make a phone call or manage another lengthy process. Making it easy to book encourages customers to reserve a table at your restaurant.
- Data Collection and Customer Insights: Online reservation systems often come with the added benefit of collecting valuable data. For small restaurants, this is invaluable in understanding customer preferences and trends. Ordinarily, this information would need to be purchased and would not be specific to the restaurant. The benefit is therefore more accurate.
- Reduced No-Shows: Many online reservation systems come built-in with calendar reminders and notifications. This can reduce the chances of a no-show.
- Optimising Table Management: Online reservation systems can help restaurants manage their seating more efficiently. Just collecting reservations alone allows restaurants to be proactive and plan ahead of time. Many reservation systems even automate this process for you, allocating customers to tables in an efficient manner.
- Free Advertising: Reservation systems typically have some kind of reviewing feature. This can be seen as free word-of-mouth advertising where real customers vouch for your restaurant. No business is more trustworthy than a fellow customer.
By offering online reservations, small restaurants meet customer expectations for digital convenience whilst boosting their operational efficiency - putting them on an equal footing with large chains in the booking department. We’re one step closer to the finishing line!
Leveraging Personalised Service Through Reservations
One of the unique advantages of small restaurants is their ability to deliver a highly personalised service. We explored how this can be achieved by providing a genuine human experience. This section focuses on how this can be further supported by an online reservation system.
When customers make an online reservation, they are often asked about their preferences and special requests. This allows restaurants to be proactive and prepare in advance, tailoring their service to meet the needs of the customer. I have seen firsthand how acknowledging customers' preferences and special requests puts a smile on their faces.
Moreover, some systems keep track of customer data over time including their preferences. The one thing better than catering to customer preferences is catering to their preferences without any prompt.
This level of attention to detail can make a lasting impression, fostering customer loyalty.
Boosting Operational Efficiency with Minimal Resources
Small restaurants often have a tight budget with limited staff. This often means that staff need to wear many hats contributing to various parts of the business. An online reservation system can help boost operational efficiency with minimal investment.
Online reservation systems can take the load off the team by managing tables, sending reminders and notifications and of course, capturing reservations. By embracing automation, restaurants can focus on delivering excellent service to in-house guests rather than juggling multiple responsibilities and dividing their attention.
Boosting Marketing Using an Online Reservation System
Whilst large restaurant chains can pour money into digital marketing campaigns, small businesses on the other hand need to take a more strategic approach.
Online restaurant reservation platforms can serve as a powerful marketing tool. Traditional marketing campaigns can be expensive and inaccessible for smaller restaurants. This is where an online reservation platform can help with marketing:
- Visibility: By listing your restaurant on an online reservation platform, you are automatically bringing attention to your restaurant. This simply means that you would have created another avenue through which customers can reach you.
- Integration with Search Engines: Online reservation systems typically are developed to be understood by search engines such as Google. This allows your restaurant to be more discoverable via search engines directly.
- Allows you to Appear Alongside your Competition: It can often feel like the louder voice of the larger company drowns out your own company’s voice. However, with online reservation platforms, your restaurant can appear next to your competitors. This provides your restaurant as an alternative to the larger restaurants which new customers may want to try.
- Customer Reviews: Customers will always trust the reviews of other customers over any claims made by restaurants. Online reservation systems often have a reviewing system which is an excellent way to show off what others think of you. These reviews typically appear directly on Google and other search engines, helping to draw more people to your restaurant.
- Build a Marketing Database: Reservation systems typically capture customer details when making reservations on behalf of the customer. Small restaurants can use these contacts for direct marketing effects, such as sending newsletters, offers, loyalty rewards and generally encouraging repeat business and customer retention.
- It's Free: This type of marketing is typically free as part of online reservation systems.
Competing with Discounts and Loyalty Programs
Large chains often lure customers with discounts, loyalty programs, or membership deals that independent restaurants may struggle to match financially. However, with the insights gained from an online reservation system, small restaurants can create their own versions of loyalty incentives without needing to break the bank.
For example, you could offer a small discount for diners who book through your website or give regular customers a special "VIP" experience based on their booking history. Because online reservation systems track customer data, it’s easy to implement a loyalty program where regular customers earn perks like a complimentary drink or dessert after a certain number of bookings.
This approach not only encourages repeat visits but also deepens the personal connection between your restaurant and its guests - something that large chains often fail to achieve.
Online Reviews and Social Proof
Big chains often have established reputations, but small restaurants can build credibility through positive customer reviews and word of mouth. Online reservation platforms typically allow diners to leave feedback and ratings. By encouraging customers to leave reviews, small restaurants can build a strong online presence, vouched for by other customers.
Social proof is an incredibly powerful tool in many industries, especially in the restaurant industry. Potential diners are more likely to trust the recommendations of other customers than anything any business may claim.
By providing a seamless booking experience and delivering excellent service coupled with delicious food, small restaurants can generate positive reviews, build their brand and attract more diners. This closes the gap between smaller and larger restaurants.
An Affordable Restuarant Reservations Platform
From all that we have covered, the missing piece of the puzzle is an affordable restaurant reservation system. I will at this point, shamelessly plug my restaurant reservation system - Make a Rezzy.
This particular system is suitable for restaurants that do not have a large budget to spend on technology by offering an extremely affordable price
It is important to remember that some reservation platforms such as Make a Rezzy will work alongside other systems. Therefore, you may wish to utilise multiple reservation platforms to drive your business.
Conclusion
As a restaurant owner in the business marathon, it is important to recognise what makes you different and makes you stand out from your larger competitors. Small restaurants may not have the same financial muscle or brand recognition as larger chains. However, they certainly compete by embracing technology, particularly online reservation systems.
Online reservation platforms offer small restaurants the ability to streamline operations, improve customer experience and create personalised dining experiences that leave a lasting impression. These systems can also help small restaurants become more efficient, reach a broader audience and market themselves effectively without the need for a large budget. Ultimately, by combining the convenience of online bookings with the charm and personal touch of an independent business, small restaurants can carve out their niche in a crowded marketplace and thrive in the face of big chain competition.
I recommend exploring and finding the right reservation platforms for your business and I look forward to seeing you at the finish line.