Conducting a restaurant market analysis before starting a restaurant in Singapore will help you determine the feasibility of opening a restaurant. Singapore’s restaurant industry can be a little difficult to decode; therefore it is important to do your homework before you inaugurate a restaurant there.
Singapore’s food industry is the highest contributor to its economy and also keeps conducting researches in areas such as nutrition, flavors, and food packaging; this makes it imperative for the budding entrepreneurs to conduct a restaurant market analysis beforehand.
This article will assist you in carrying out the restaurant market analysis in a systematic manner.
Step-by-step Guide For Conducting Restaurant Market Analysis
Restaurant market analysis will help you determine hidden infill opportunities to maximize your restaurant’s profit.
From helping you identify if the market has the right customers to the top potential locations, restaurant market analysis takes care of it all.
We have prepared a step-by-step guide you can follow when conducting the restaurant market analysis in Singapore.
Step 1: Identifying The Restaurant Industry Trends
The very first step of restaurant market analysis is to study the restaurant industry trends. This will help you recognize possibilities and threats in the restaurant industry that may affect your profitability.
There are various restaurant resources available in Singapore you can rely on to gain information about the restaurant industry trends like:
Reading restaurant resources is an excellent way of identifying the trends and using it to your benefit when starting a restaurant. Identifying the trends gives you an upper hand and will help build a good brand value for your restaurant.
Step 2: Studying Demography
The next step is to study the local demographics and identify if the location has the desired audience. It does not matter how populated the location is. If it does not have the right customers to sustain your business, your restaurant will fail.
For example, if you have a fine dining restaurant, opening an outlet in a university area will not help even if it is packed with students. They won’t splurge the kind of money you would require to run a fine dining restaurant.
Along with the location you can also study the economic stats and determine the restaurant sales potential in the location you plan to serve. If we shed light on some of the popular restaurant locations in Singapore, we can see that every location is popular for a specific restaurant type.
For example, Lau Pa Sat and Maxwell Road are popular spots for hawkers, Marina Bay is the favorite spot for opening fine dining restaurant, and Clark Quay is famous for its casual dining restaurants.
Step 3: Studying Your Competitors
Before opening a restaurant you can study the existing eateries in that location. Learning from your competitors is an excellent restaurant market analysis technique.
If you wish to open a QSR, observe other QSRs in that region and see what kind of customers do they attract. You can also take notes of the busy hours; this will help you schedule your restaurant staff adequately.
A good restaurant market analysis will help you understand the competitive factors that are driving a market and how that competition will affect your performance.
Step 4: Researching About The Restaurant Concept
Researching your restaurant concept is an excellent way of getting a headstart. Analyzing the concept will help you target the right customers and help you understand customer preferences and see how they react to a particular restaurant concept.
If you are planning to open a casual dining restaurant see how people are perceiving a concept like that, and how well a casual dining setup is doing in a particular area.
It is your restaurant concept that distinguishes your restaurant from others in the market area and attracts desired customer groups.
Fine dining and casual dining restaurant concepts are the most popular in Singapore, They dominate 35.3% of the restaurant industry.
Step 5: Researching About Menu Preferences
Researching the menu choices is vital when starting a restaurant. Singapore is home to various nationalities which means people have diverse taste buds. Before you curate a menu you need to study what the local people like eating and whether your menu items would entice them.
Study the best selling items in that area and the raw materials that the customers prefer the most. This will help you decode your customer’s favorites and what best suits their taste buds. Singaporeans crave local flavors, with more than four in five choosing to eat at hawker centers when not at home, and forty-four percent believe foreign food will not impact local food.
By carrying out the restaurant market research you are increasing the chances of your restaurant’s prolonged success and making a mark in Singapore’s challenging restaurant industry. Follow the steps mentioned above and understand the restaurant market before you open your own eatery.