We’ve covered a restaurant SWOT a couple of times here. And yet the topic warrants a lot more investigation and understanding so that it becomes an accessible and useful tool.
As a quick refresher, a SWOT is an acronym that stands for a systematic documenting of a restaurants Strengths, Weaknesses, Opportunities and Threats. It can be used as the foundation of brand analysis and the strategic beginning of a comprehensive marketing plan. It becomes useful when one understands how to use the acronym objectively rather than subjectively.
For example a Strength can subjectively be: our food is better than our competitors. That may be a true statement but it is subjective and not measureable. And that same statement can be reformatted objectively as “Our food is prepared to order thereby making it taste fresher and more vibrant than that of our competitors.” In other words, we deliver fresh while our competitors deliver pre-made food in the same style.
However; it is important to state the obvious fact that your food is probably more expensive than that of your competitor due to higher labor costs. A higher price point can be both a strength or a weakness. In fact, it can also be an opportunity and means of differentiating your business. In certain target markets, a higher price point is not a deterrent but rather a vehicle of communicating value. Price is a value communicator in certain products and circles. As an example, think of a brand new Harley Davidson being sold for $1000. We immediately think that it is a knock-off but when we think of a brand new Harley Davidson for $15,000 we know it is of quality and real.
So give it a try to with the remaining three. Keep us posted and let us know how it goes or if we can help you with a comprehensive restaurant SWOT analysis.
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