{"id":4898,"date":"2018-12-21T20:18:00","date_gmt":"2018-12-22T02:18:00","guid":{"rendered":"https:\/\/live-gordon-food-service.pantheonsite.io\/conducting-opportunity-analysis\/"},"modified":"2023-02-01T14:21:51","modified_gmt":"2023-02-01T20:21:51","slug":"conducting-opportunity-analysis","status":"publish","type":"post","link":"https:\/\/gfs.com\/es-us\/ideas\/conducting-opportunity-analysis\/","title":{"rendered":"Conducting an Opportunity Analysis"},"content":{"rendered":"

Successful operators are always on the lookout for new opportunities to establish a unique place in the market. Launching a new menu item or service offering carries a risk, however. If it\u2019s not distinctive enough, if it doesn\u2019t appeal to your target guest, if you\u2019re not able to execute it well, you may damage your brand and your bottom line. <\/p>\n

An opportunity analysis helps minimize the risk. It helps validate the viability of your idea and your ability to make it happen\u2014before you spend inordinate time and resources to launch it. While there are many ways to evaluate an opportunity, these three steps are the foundation for any effective analysis.<\/p>\n

Look at the competition<\/h3>\n

Begin with a competitive analysis. Focus on businesses within a one- to 15-mile radius of your operation. The circle you draw should be based on the density of the competition and the population\u2014the higher the density, the smaller the circle. (Businesses that are true destinations or resort locations are exceptions to this rule.)<\/p>\n

Once you\u2019ve determined your circle, zero in on those businesses that are direct competitors<\/a> for your guests. It\u2019s not just restaurants you\u2019re concerned with, it\u2019s anywhere consumers might spend their foodservice dollars\u2014including B&I cafeterias, C-stores, supermarkets and delivery services.  <\/p>\n

Keep your analysis simple. First, use the Internet to review competitors\u2019 menus, service offerings and prices. Keep an eye out for things that seem similar to the initiative you have in mind. As you narrow down the list, you\u2019ll want to visit sites in person as a guest to help you better identify your direct competitors. This is the critical first step in defining the battleground on which you\u2019ll fight for market share.<\/p>\n

Identify your target audience<\/h3>\n

A market analysis is the next step. The goal here is to better understand your target guest and the likelihood they will embrace your initiative. Focusing on the population within your already defined circle, you\u2019ll want to identify demographic factors as age, sex and income. The U.S. Census Bureau<\/a> is an excellent resource for this information.<\/p>\n

You can use this demographic data to help gauge the likely reception to new products and services. Do they align with the interests and lifestyles of your target audience<\/a>? Are they priced appropriately? Do they appeal to the predominant generational groups in your target area? While no generation is black-and-white in its preferences, there are specific tendencies that should be considered to help you further scale your opportunity.<\/p>\n

Assess Your Capabilities<\/h3>\n

Once you have a clear understanding of your market and target audience, it\u2019s time to look inward. Operators often start with this step, but the effort is wasted if the competition is already nimbly executing your idea or there is no guest preference for such an initiative.<\/p>\n

Let\u2019s take the example of an operator who would like to launch a mobile application allowing guests to pre-order and pre-pay for takeout. Assessing capabilities in this case would entail analyzing whether the front and back of the house are really ready to support such a plan.<\/p>\n

Operators may think they\u2019re good to go if they simply lock down packaging and perhaps connectivity to a point-of-sale system. But a truly effective analysis will dig into far more details. Answering these sample questions, for example, will give you a broader, more accurate perspective on your ability to execute this idea well.<\/p>\n

Back of the House (BOH)<\/strong><\/p>\n