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New Open | 開張開講
We know that 2024 has been a tough year. Foot traffic and table turnover rates are lower than before, while ingredient costs keep creeping up. No matter how you crunch the numbers, the financials can feel discouraging. But don’t lose hope! Today, we’re laying out the data and combining it with last year’s economic forecasts to provide you with some simple yet effective strategies.
What Did Last Year’s Data Say? Where Has Consumer Spending Gone?
Let’s take a look at the economic forecast for 2024. According to reports from economic research institutes and other organizations, Taiwan’s GDP growth rate is projected to be between 3% and 4.5%. While this may seem promising, this type of "moderate growth" is not strong enough to significantly boost consumer spending in the restaurant industry. Inflation is expected to be between 1.9% and 2.3%. Though this isn’t considered high, costs for ingredients, rent, and labor continue to rise. The fluctuation of the NTD to USD exchange rate has also increased the cost of imported ingredients. Additionally, the escalating U.S.-China trade tensions could negatively impact Taiwan’s GDP. When consumers tighten their budgets, dining out is often the first expense they cut back on. These numbers suggest that the restaurant industry in 2025 will still face challenges and must find ways to adapt.
Finding a Way Forward from the Data
1. Low-Cost Transformation
With a 2% inflation rate, consumers are already spending more cautiously. We recommend introducing affordable set meals that cater to budget-conscious customers or targeting local demographics with strategic pricing.
2. More Locally Sourced Ingredients
Imported food costs may stabilize in the long run, which is a relief. But why not take it a step further? Expanding your use of high-quality local ingredients can help create a strong "Support Local" brand image, making your restaurant feel more connected to the community.
3. Digitalization as a Lifeline
A slower economic recovery means customer foot traffic won’t automatically increase—you need to actively reach out. Online food delivery orders grew by over 20% last year—this is a clear signal. Partnering with Uber Eats and Foodpanda and integrating OMO (Online-Merge-Offline) strategies in this post-pandemic era can give your business a competitive edge.
4. Enhancing the Customer Experience
The best part? These strategies require minimal investment but yield high returns. You don’t need to renovate your restaurant or host expensive events. Small gestures can make your business stand out:
Engage customers interactively: Place a small whiteboard in your store with prompts like “What do you crave today?” or “Share your thoughts, and we’ll surprise you!” Customers can leave messages, and those who participate can receive a small gift or discount.
Add a personal touch to deliveries: Write a thank-you note on your takeout orders to make customers feel valued.
30 Years of Restaurant Consulting—Let’s Talk!
If you’ve tried multiple strategies but still struggle or want to implement these ideas but don’t know where to start, fill out our online form to connect with us! We’re here to support you every step of the way—your trusted partner in the restaurant industry.
📢 Upcoming Seminar: Labor Inspections & ComplianceWe’re hosting a special seminar focused on key labor inspection issues. Attendees will receive a self-assessment checklist and enjoy a free 30-minute post-seminar consultation with experts. Join us to identify potential risks in your business and find the best solutions tailored for you!
📩 Sign up now and let’s navigate these challenges together!