5a

Internet and digital technology have brought huge changes to the restaurant industry

Because of the internet and digital technology development, internet and digital technology are beginning to affect more industries such catering industry, communication industry, advertising industry and others. The marketing mix – widely referred to as the 4Ps of Product, Price, Place and Promotion – was originally proposed by Jerome McCarthy (1960) and is still used as an essential part of formulating and implementing marketing strategy by many practitioners (Chaffey＆Ellis，2019). Then, some people change those idea from 4p to 7p that are product, promotion, price, place, people, process and physical evidence.

In this bolg, we talk about the catering industry. Internet and digital technology have brought huge changes to the restaurant industry that cannot to imagine.

Product

For the restaurant, their product is food that is physically present, and it cannot to digitizing.

However, more and more restaurants have some good ideas to promote products on the internet. For example, the McDonald’s use the beautiful image to attract customers. In their advertisement, people always find big hamburger that has beautiful color. Also, it will inspire people’s appetite. Second, the McDonald’s always promote their brand. In the reality, we are easy to find the big M in the McDonald’s restaurant. So, they bring this to the internet. In the McDonald’s online advertisement, people will remember two things. one is hamburger the other is big M.

Promotion

With the expansion of the Internet, the social media have a large part in internet such as facebook, ins and others. Some people like to share their life in those. So, food will become the important part in their dynamics. Successful restaurants now are taking advantage of Facebook, Twitter, and many other social media platforms to reach new customers, generate buzz for their restaurant, and to share unique content. Social media is allowing restaurants to extend their bond with their regular customers. Some restaurants even choose to have their chefs speak directly with their customers via YouTube or Facebook Live (Mitchell 2017)

Price

With the many restaurants join the internet, intense competition started. The most effective means that is decline price to retain customers. The low price brings a large number of customers and a lot of sales bring more profits. So, many restaurants have different price reduction strategies. For example, some restaurants have launched daily specials. For McDonald’s, people can get 2-dollar hamburger at ever Wednesday in China. Also, the other restaurants launched group buying activities that let many customers to chose same food to get low price. Many people chose restaurant because of group buy.

Place

Internet and digital technology bring the new development for catering industry. In the past, people always eat food in the restaurant, and they think takeaway is the different thing. However, internet and digital technology change it. More and more takeaway app appears in front of people. Good service and reputation let people happy. Also, some small restaurants make takeaways the main business because of their restaurant just have 2 or 3 table.

People

Internet and digital technology have brought huge changes to the restaurant. In modern, most work will be handed over to the robot. With the Internet and digital technology development, robot will not need data line when it is working. So, robot waiters appear in front of people. This is a huge crisis for waiters that let restaurant do not need more people. Just two robots will finish 6 people’s workload.

Process

Because of the most people like takeaway, many restaurants want to development takeaway. However, High cost is a big problem that let restaurants have more burden and spend more time cost. So, more and more restaurants choose deliver transportation business to third-party companies.

Physical evidence

With the intense competition, there are two extremes in the catering industry. First, Storefront cost and material costs become the most important competitive factor. Many small restaurants stop the physical store and let takeaway become main business. That uses the lowest price to attract customers and use a lot of sales to make a profit. Second, some restaurants choose to stop takeaway. They have unique and high-quality products to attract customers and profit from high-priced products.

5b

Suggest

First, I will suggest him to sign up for some social media accounts such facebook. It is really good for he to promote himself products and that is free. Social media is always the focus of people’s attention

Second is extended brand. Open the online shop and join the Amazon and others. That will let product has more chance to touch customers. Online sales will further expand customer base. Then, I will suggest he keep physical store that will bring more sense of trust.

Third is cooperation, because of my friend sale sports equipment and equipment. I will suggest he cooperate with some sports venues. For example, if people buy sports equipment and equipment, people will get a free ticket sports venue.

Fourth, give coupon for customers. Use more low price to attract customers.

Reference

Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing. Pearson UK.

Mitchell S. (2017). Five Ways Technology Is Impacting the Restaurant Industry Right Now. https://www.modernrestaurantmanagement.com/five-ways-technology-is-impacting-the-restaurant-industry-right-now/

M. (2019). https://mcdonalds.com.au/