Opiniator showcased cell phone feedback solutions for restaurants at the NRA Show 2023
The National Restaurant Show (NRA Show 2023) is one of the largest trade shows in the US and traditionally held in Chicago in May . Moreover it provides a central venue to showcase new products and services to the restaurant industry. This year we were there, showing off our guest feedback solutions for both restaurants and their restrooms. In fact there were over 45,000 attendees and 2,000 exhibitors vying for their attention.
Feedback is critical for any business, but for restaurants – it is essential, hence our presence. Read on to find out what we discovered.
What are restaurant owners saying are their biggest issues?
The bottom line…..mostly ‘Yes’ – so read on.
There were four main questions:
- Why is negative online feedback so damaging?
- Just how damaging is it? – Can this be quantified?
- How to prevent negative comments on Yelp
- How to manage restrooms better
Question1 : Why is negative online feedback so damaging to a restaurant?
Matt Selbie:
Negative online feedback can have a significant impact on a restaurant’s reputation and overall business. Here are some key effects of negative reviews on Yelp.
- Damage to Reputation: Negative reviews can harm a restaurant’s reputation, as potential customers often consider online feedback before making dining decisions. If multiple negative reviews highlight issues such as poor service, food quality, or cleanliness, it can create a negative perception that deters potential customers. Remember that Yelp has as more than 178 million visitors every month. And 45% of adults in the US will first turn to Yelp to help with a purchase decision. The restaurant industry. 61% of consumers have read online restaurant reviews, and 34% of diners choose a restaurant based on reviews. SO YES – YELP IS IMPORTANT
- Decreased Customer Trust: Online reviews play a crucial role in building customer trust. Negative feedback can erode trust in the restaurant’s ability to deliver a positive dining experience. Customers may question the authenticity of positive reviews or become skeptical about their own potential experience.
- Loss of Potential Customers: When potential customers come across negative reviews, they may choose to dine elsewhere, resulting in a loss of business. People are more likely to believe negative reviews than positive ones, so a few negative comments can outweigh numerous positive reviews.
- Negative Word-of-Mouth: Unhappy customers who leave negative online feedback may also share their experiences with friends, family, and colleagues offline. This negative word-of-mouth can further damage the restaurant’s reputation and reach a wider audience.
- Impact on Revenue: A decline in customer trust and loss of potential customers can directly impact a restaurant’s revenue. Decreased footfall and a decline in repeat business can lead to financial losses, making it harder to cover operational costs and potentially forcing the business to downsize or close down.
- Difficulty in Attracting Quality Staff: Negative online feedback can extend beyond customers to potential employees. Job seekers often research a restaurant’s reputation before applying, and if negative feedback is pervasive, it may deter qualified candidates from seeking employment.
- Need for Increased Marketing Spend: To counteract the impact of negative online feedback, restaurants may need to invest more in marketing and advertising to rebuild their reputation. Additional resources will be required to actively manage and respond to online reviews, engage with customers, and promote positive aspects of the dining experience.
Question 2 : Just How Damaging – Can it Be Quantified?
Matt Selbie:
Short Answer – YES:
We know that bad restaurant reviews drive existing customers to defect, and new potential customers – never to visit.
- Use a defection calculator to determine exactly how much this is costing a business. We have you covered as have one to download.
- Understanding the brand impact is harder – but here are some stats worth looking at
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Only 13% of consumers will consider a business with 1 or 2 stars
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More than four negative reviews about a company or product may decrease sales by 70%
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Small businesses with a 1–1.5 rating on Google generate 33% less revenue than the average business.
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A customer who is dissatisfied will tell between 9-15 people about their experience, with over one in ten telling 20 people about their bad experience.
Question 3 : How to Prevent Negative Feedback on Yelp
Matt Selbie:
The good news is that we have a free guide for you – exactly on this topic:
Question 4 : How to Manage Restrooms Better
Matt Selbie:
The good news is that we have a guide for that as well!
Conclusion
There are about 660,000 restaurants in the US. This means it is a very competitive, cut throat market, with ever demanding customers. Get the operations wrong and the results are disastrous particularly if customers complain online.
So the collection and action on customer feedback is critical. More important though is acting quickly on that feedback. Opiniator is designed to do this and help a restaurant increase:
- Reputation
- Credibility
- Operating standards
- Loyalty
- Profits
Check out more on the restaurant page.
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