What can restaurants learn from the failures of retail brands
Omni channel strategy has only led to more closures than growth of retail br
Omni channel strategy has only led to more closures than growth of retail brands
Data and technology may not save the restaurants from the slowdown, as the same could not save retail from the financial crash of 2008. All technology heavy food brands such as Rebel Foods ( Faasos), Zomato and Swiggy are unprofitable.
Retail expert Kevin Hillstrom shared his insights in a tweet storm: After the financial crash retail industry tried to fight back the slowdown with the omnichannel strategy. It also tried adjacent partnerships such as opening outlets near the food halls. Both did not work. Technologies such as e-commerce killed the foot traffic of the retail brands such as Gap. Social media and influencer marketing aren’t hel[ing either. Digitally native brands or direct to consumer brands are also not making money. Adidas relied too much on digital and harmed itself .
In another tweetstorm he shares that three things hurt retail the most. One, retail brands convinced their customers to shift to digital. Two, the foot traffic fell as customers stopped going to adjacent stores. Three, lack of attention to merchandise and offering deep discounts.
Restaurants in India are already opposing the online food aggregators such as Zomato and Swiggy. They should also think if cloud kitchens help them in the long run, which is equivalent of moving resturants to digital. Also, restaurants should aim to offer interesting experiences to its customers.
