​Competition. Supply chain challenges. Price hikes. Tariff-related uncertainty. Foodservice operators are juggling a wide range of challenges that are affecting consumer spending and the daily management of business. As a result, it’s more important than ever to have a resilient brand. Resilience isn’t just about surviving tough times – it’s about thriving, adapting and maintaining a strong identity that can weather market fluctuations and unforeseen challenges. Here are some actions you can take to fortify your brand. Are there opportunities for you to expand your efforts with any of them to better navigate the times?

First, make sure you have a brand identity that sets you apart. Is it your commitment to sustainability? Your devotion to a specific regional cuisine? Your story should build brand recognition and inspire guest loyalty.

Then, find ways to become more nimble. Are there areas where you could make your business more flexible – and less reliant on any single business stream? Maybe that could involve building your catering business, launching branded products, creating a virtual brand, or using technology to scale up your delivery orders during peak hours in your dining room.

Speaking of technology, are there parts of your operation where you can use tech to drive greater efficiencies? Your technology can help you scrutinize and minimize waste – whether it’s excess inventory, staff time spent on manual processes, or guest preferences that aren’t consistently translated into actionable insights. More data is only better if you ensure at the outset that it is clear, concise and connected to your goals – so you can use it to take positive action.

Take steps to build trust with your people – guests, staff and vendors. Create a memorable, personalized, convenient guest experience. Invest in employee development so your people are not only ready to handle any situation, but that they are also supported in ways that make them productive and motivated. Make sure you trust your suppliers and partners – and their ability to help you maintain quality and manage shortages, price hikes or other disruptions that may occur.

Loyalty programs may be due for an evolution. It’s probably no surprise, considering they have become so widespread. Foodservice operators need to find new and inventive ways to reach guests and earn their loyalty – and that becomes more challenging if brands are using similar loyalty playbooks. Some recent reports and events are hinting at where loyalty is heading.
In a recent episode of the Restaurant Masterminds podcast, host Paul Barron and guest Stacy Kane, a fractional CMO for several fast-casual brands, said Gen Z has less brand loyalty than previous generations. As their spending power grows in the coming years, restaurants may have to rethink traditional, points-based models. Kane said authentic hospitality – like a personalized note on a takeout bag – drives true brand affinity more than transactional rewards. They both critiqued the industry’s lack of meaningful personalization and transparency, citing Starbucks' 2023 rewards devaluation as a cautionary tale. “If you can’t afford the loyalty program, don’t do it,” Barron advised, underscoring the importance of building trust over gimmicks.
So what can operators do? At the Restaurant Leadership Conference in Phoenix this month, one panel discussion, “The More You Know: Fueling the Personal in Personalization,” focused on how brands can create meaningful guest connections. Jane McPherson, senior vice president at Penn Station East Coast Subs, spoke on the panel – and emphasized how collected data and AI insights are enabling the differentiation brands need to enhance loyalty. Specifically, she said foodservice brands can collect and combine information like how often a customer visits, what they order, how they interact with emails or apps, and general demographic details – taking steps to protect their privacy in the process. From there, they can use AI predictive analytics to get unique insights on guests, the occasions they visit, and the opportunities that exist for reaching them. Armed with this information, brands can use generative AI to tailor messaging to individual guest segments.

​It’s so much easier to bring existing guests back to your restaurant than to attract new ones – and your loyalty program is a vital tool to help inspire return visits and make them feel worthwhile to people. But at a time when loyalty programs are available at so many restaurants (as well as at more indirect competitors like convenience and grocery stores), it’s important to make a program relevant to each guest. McKinsey research found that businesses that excel at personalization generate 40 percent more revenue from their personalization efforts than businesses that are more average performers. But there is a lot of room for improvement here, according to a new loyalty report from Paytronix. It found that only 44 percent of consumers say the offers they get are relevant, indicating a desire for higher levels of personalization. Even if your business offers some kind of loyalty program segmentation – most brands do – are you sure it’s hitting the right notes with guests? The Paytronix research found that successful programs offer differentiation so each member gets what they crave, an emotional connection using such tools as historical data about past orders or celebratory offers on birthdays, and brand affinity so guests connect positive experiences with your business. This requires understanding guests at a granular level. AI and machine learning technology that is baked into many new platforms is helping to give operators a leg up in this area, delivering flexibility and deep segmentation so they can offer the kinds of extremely relevant experiences that make guests feel the emotional pull to return, do so more regularly, and spend more when they do. 

In these uncertain economic times, there has been a lot of talk about how restaurants must build value into the experience they offer guests. This isn’t simply about making guests feel they are getting a good deal, but about making the experience feel like it’s well worth the cost – or that it easily justifies the decision to choose your restaurant over the one across the street, or over preparing a meal kit at home. Delivering that level of experience increasingly requires restaurant operators to anticipate their guests’ needs before those guests even know what their needs are. Collecting and dissecting data to deliver ever-greater levels of customization and personalization can help. As a recent report from Modern Restaurant Management says, technology is enabling operators to capture details about guests at every point of their experience – so they can know that one guest is allergic to dairy, or that she likes eating at a certain table. This also means that a server is equipped with food and drink upsell suggestions based on a person’s previous order. So a server may not necessarily offer the same special to every table anymore but instead can make a targeted seafood suggestion that complements the wine that guests at one table have ordered the past three times they have visited your restaurant – then promote plant-based specials to the vegetarians at the next table. This deeper level of personalization extends to a restaurant’s communications with guests too, so you have a range of targeted promotions going out to subsets of your email or text distributions. This year, how can you make your in-person and electronic outreach to guests feel more personal and less one-size-fits-all?