After designing the perfect menu or coming up with a brilliant marketing plan, one of the most difficult tasks for a budding restaurateur to complete is deciding where to place their new restaurant.
Technology known as location intelligence has been developed to help restaurateurs in this venture. But what is it? How does it help restaurateurs find the right location for their business? What else can this technology do? This article will help answer these questions.
What is Location Intelligence?
Location Intelligence (LI) is a business tool that takes geospatial data—like measuring how many people walk through a certain intersection at a certain time—and turns that data into insights for the user.
This technology is widely used in generating traffic reports, or reports which show the amount of traffic a geospatial point sees over a period of time by measuring the number of “connected things”—smartphones, sensors, etc.—around a certain point. These reports are often costly, some up to $1000 per hour of research, yet can be irreplaceable when one is searching for the perfect spot for their new business.
These reports are primarily used by real estate developers when designing new projects. However, they are becoming more widely used by entrepreneurs who can’t afford to be wrong.
This rising popularity has sparked the growth of many LI companies, such as Acutely, SiteZeus or Carto, and led to some state governments to begin their own research into the field. An example is Colorado’s partnership with Integrated Roadways, a startup from Kansas City, Missouri, that has developed “smart pavement” with the capability of generating traffic reports itself.
How do I make LI work for my restaurant?
Outside of helping someone decide where to place their restaurant, LI can help business owners perfect their marketing strategy.
Don’t believe me? Just ask Amazon.
When the logistics behemoth bought Whole Foods in 2016, many analysts thought the move was about expanding Amazon’s business ventures. In reality, it was a carefully planned step toward perfecting Amazon’s LI software.
Now, Amazon can see how long it takes a consumer to click on a deal in their Whole Foods app and purchase the products in-store. The same can be true of any restaurant utilizing an app feature.
LI also contextualizes your advertisements so that they don’t seem to be as intrusive as other conventional advertisements can be. This helps filter your advertisements into your customers’ hands, which can lead to a larger Return on Investment in your advertising.
Staying up-to-date with technology is a key to success in most business ventures these days. Restaurants may have been slow to catch up beforehand, but now the industry is fully embracing modern technology. Don’t get left behind because of skepticism.