Early in my food service career, I thought my only responsibility was managing what happened within the four walls of my restaurant. But when a new restaurant opened just down the street from mine, I realized I needed to pay attention to the bigger picture of all the things affecting my operations. I quickly learned that proactively addressing external influences, such as competitor restaurants or online customer reviews, is an important part of being an effective manager.
In today’s digital-first environment, the influence of competitors and online reviews can have an even greater influence on your business, so it’s important to understand how to strategically address them. Fortunately, you can effectively manage restaurant competition by setting yourself apart and turning feedback into a tool that strengthens your reputation.
Why Competition and Reviews Matter
The restaurant industry is crowded, and no matter how good your food is, there’s always another option nearby. In this environment, your reputation can be the deciding factor for whether someone walks through your door or the one next door. Consumer spending on dining out has increased considerably over the past few years, and you want to make sure you grab the attention of hungry shoppers.
Most diners check online reviews before trying a new restaurant, which means a customer’s first impression of you typically happens online. That’s why survival and growth in today’s market depends on engaging with customer online reviews and actively differentiating your restaurant’s digital persona. If you do this better than your competitors and stay active with your online profiles, you’ll more likely win those customers who are searching for their new “favorite spot.”
Stand Out From the Competition
When a new burger joint opened two blocks from my restaurant, I worried about losing our regular customers. Instead of trying to out-burger them, I leaned into what made us different: a cozy dining room with plenty of choices for a variety of tastes, where families could relax and feel welcome. We adjusted our specials to focus on “family friendly” appeal, and this provided an edge in appealing to our customers.
That’s the key to managing restaurant competition: figure out what makes your place unique. Start with a simple competitor analysis that looks at nearby menus, pricing, and promotions. Do they focus on one main cuisine while you provide more variety? If they’re competing on price, can you position yourself as providing a premium experience?
Gaps like these aren’t issues — they’re opportunities. Instead of trying to compete with the burger place next door head-on, think about where you can set yourself apart in the minds of your customers.
Managing Online Reviews Effectively
If you’re not quite sure how customers view your restaurant, just find the nearest online review page. Love them or hate them, online reviews give you important insight into your current customers and shape the expectations of your potential customers.
An empty review page can be just as damaging as one full of complaints, but with the right approach, your reviews can help strengthen your reputation. Here are a few best practices to keep in mind:
- Encourage positive reviews. Ask satisfied customers to share their experience online; sometimes, a friendly request is all it takes to generate glowing feedback. You can also incentivize reviews with a raffle (e.g., “Get a chance to win a $25 gift card when you leave us a review this month.”).
- Handle negatives with grace. Respond quickly, politely, and with a solution in mind. Acknowledge the issue, apologize if appropriate, and explain how you’ll fix it.
- Remember that silence hurts more than criticism. Ignoring feedback (good or bad) sends the message that you don’t care or aren’t paying attention to what customers are telling you. A thoughtful reply to a bad review can not only save the relationship, but it can also win over other readers who may otherwise have gone elsewhere.
Use Reviews as Competitive Research
As you start keeping tabs on your reviews, you’ll notice that customers tend to be brutally honest online. That honestly works in your favor by giving you a front-row seat to what people think about your competitors. Scan your competitors’ reviews and look for patterns: Maybe diners rave about their food but complain about slow service, or perhaps, they love the vibe but wish there were healthier options.
These comments are essentially free market research that guides you to how you can attract customers away from the competition. Instead of guessing where the gaps are, you can see them spelled out in real time and adjust accordingly. If customers grumble about long waits down the street, highlight your quick turnaround. If others mention wanting more family-friendly spaces, emphasize your welcoming atmosphere. Use these reviews as a playbook for making your restaurant the clear choice in your market.
Best Practices for Long-Term Success
Managing restaurant competition and reputation isn’t a one-time project, it’s an ongoing habit. By putting a few intentional systems in place, you can stay ahead and keep building trust with your customers.
- Make competitor and self-review check-ins routine. Set aside time each month to scan both your own reviews and those of nearby restaurants. You’ll spot patterns early and stay informed about customer expectations as they change.
- Coach your team to embrace feedback. When your team understands that reviews reflect the customer experience, they’ll be more invested in delivering consistently. Train them to view both good and bad feedback as opportunities to stay focused on what’s most important to your customers.
- Stay proactive with reputation management. Don’t wait until a crisis hits. Regularly update your online profiles, refresh photos, and respond to reviews quickly so your reputation reflects the effort you’re putting into your restaurant every day.
Turn Restaurant Competition Into Clout
Rather than viewing competition and reviews as obstacles, think of them as opportunities to build the recognition and influence of your restaurant in the community. By analyzing rivals and responding thoughtfully to feedback, you can strengthen your reputation and attract loyal customers, even in crowded markets.
Start today by crafting a thoughtful reply to one review and identifying a gap your competitors overlook. Those small actions can transform challenges into lasting positive impact on your brand.