F&B STRATEGY – THE ROLE OF MARKET RESEARCH AND ANALYSIS

Written by Sean Paul, Director of Strategy & Masterplanning 

Whether it's F&B Masterplanning for an entire city or launching a new restaurant concept in a competitive market, every endeavour in the F&B industry must be grounded in a rigid process of market research and analysis—paying close attention to localised data and insights.  

Drawing from our global experience building winning strategies for some of the world’s major hotel groups, restaurant brands and chefs, as well as government entities and developers, we outline a few fundamentals when it comes to leveraging market research to achieve success for our F&B projects.

THE CRUCIAL ROLE OF STRATEGY IN F&B VENTURES 

As a company that encompasses a huge amount of on-the-ground experience operating restaurants, bars and major international events, as well as a universal love for F&B across all our teams, we’re fortunate to be able to draw from a deep pool of ideas and insight that help our projects stand out.  

This is made even more impactful though our 360 process that pulls insight from all our key departments, from interior designers and brand developers to award-winning chefs. 

Yet, while this layer of real-life experience sets us apart from most agencies operating in our space, we never build an F&B strategy without rooting it in a rigid process of research and analysis. Some of the most important reasons we do this are: 

• To build an accurate and real-time understanding of key trends that influence the world we operate in 

• To establish trust with our audience, whether it’s our clients or the end consumer  

• To mitigate risk by making strategic decisions that are grounded in trustworthy data, sensible assumptions and our extensive team experience  

By employing research methodologies that are robust—incorporating both quantitative and qualitative analyses to provide a comprehensive understanding of market dynamics—we are better able to minimise uncertainties and empower our clients to make informed decisions with confidence.  

Read Our F&B Trends Report 2024 

HOW TO CONDUCT F&B MARKET RESEARCH 

• Define Objectives: Understanding client objectives is paramount in crafting tailored strategies. Clients often seek answers to questions such as the expected footfall, frequency of visits, average spending per visit, and expenditure distribution. Understanding the relevance of research ensures that efforts are focused on gathering insights that directly contribute to achieving strategic goals.  

• Frame the Problem: Articulating the problem statement is essential for directing research efforts towards addressing the pertinent issues and challenges faced by F&B ventures while ensuring that key variables are considered and no stone is left unturned. 

• Review Available Data and Search for New Data: Comprehensive research entails a thorough review of existing data sources while actively seeking out new information to fill gaps and enrich insights. When operating in young and expanding markets like KSA, for example, there may be a stronger emphasis on gathering new and bespoke data that doesn’t already exist. 

• Analyse Findings: Data analysis is the cornerstone of strategic decision-making and this is often the phase when some of our most innovative ideas emerge, framed by a renewed understanding of the market and existing opportunities to provide difference and value that competitors are not.   

• Present Findings Concisely and Impactfully: Effective communication of research findings is paramount, both for our internal project teams and our clients. Focusing on what really matters from the outset not only ensures our concepts remain targeted, but also helps to frame other key processes down the road, including brand positioning and marketing communications.  

ASKING THE RIGHT QUESTIONS 

Understanding the right questions to ask when sourcing data and analysing it is key to helping us know we’re covering our objective comprehensively enough.  

When helping a client answer the question: “How much F&B should I place inside a mall?” it’s our job to break this down into a subset of questions that, when viewed holistically, help us to provide an answer that holds up when interrogated from all angles. As such, we may look at the following: 

• What’s the minimum amount that will be able to serve the expected visitation? 

• What’s the maximum amount of restaurant space I can put in that will still be commercially viable? 

• How many people are we expecting to visit? 

• How often will they visit? 

• How much will they spend?  

The idea is to employ a mutually exclusive and collectively exhaustive approach, ensuring that all relevant aspects are addressed through these questions—giving us a confident answer to the overarching question.  

Top 10 Things to Consider When Developing a Food Hall 

BUILDING AND INTERROGATING DATA SETS 

Reliability and accuracy are non-negotiable when it comes to data interrogation. Tracking reliable sources, conducting thorough validation checks, and cross-referencing data sets are essential practices to uphold data integrity.  

Furthermore, leveraging both qualitative and quantitative data enhances the depth and breadth of insights, providing a holistic understanding of market dynamics. 

While quantitative data provides numerical insights and trends, qualitative data offers nuanced understanding and consumer sentiments. Integrating both sets of data enables comprehensive analysis and strategic decision-making, catering to diverse project and client needs. 

Equally, addressing data gaps is crucial in ensuring the robustness of research outcomes. Drawing from internal expertise such as TGP’s diverse cohort of chefs and restaurateurs, conducting surveys, and creatively exploring alternative data sources are some strategies employed to bridge these gaps.  

Before we finalise our strategies, we always make sure our clients or internal stakeholders are satisfied with the way our claims and recommendations have been reached—also outlining the nature of our data mix (in terms of quantitative vs qualitative), as well as the sources of our data sets.  

Learn About the Growing Role of F&B in Retail, Dining and Entertainment Developments 

THE IMPORTANCE OF F&B MARKET RESEARCH AND STRATEGY 

Whether you’re a hotel operator, property developer, or private investor, F&B market research and strategy need to form the bedrock of your approach. TGP International plays a pivotal role in this process, offering specialised expertise and insights that streamline decision-making, mitigate risks, and maximise returns.  

We also understand the pivotal role that F&B plays in community building. We know how to build venues that not only provide real value to guests but also produce a positive and rewarding social hub that offers sustainable and inclusive benefits to both local residents and businesses—establishing ecosystems that are commercially viable and good for the world.  

In summary, the success of F&B ventures hinges on a robust strategy informed by meticulous research and analysis. We like to think our strategic approach, uniquely informed by industry experience, empowers our clients with the kind of confidence they’re unable to find anywhere else.