For restaurant brands, understanding and acting on guest feedback is no longer optional.
It’s a critical factor in driving sales, improving operations, and brand health.
In a recent Lesson from the Field, industry leaders from Keke’s Breakfast Cafe and Velvet Taco shared how reviews shape the future of restaurants. Here are the key takeaways of how they use feedback to drive success.
The Power of Average Star Ratings (ASR): Setting the Stage
One of the biggest takeaways from the podcast is the correlation between ASR and sales. Research shows that even a half-star improvement in ASR can lead to substantial sales growth:
- Casual Dining: $61,000 per location annually.
- Fine Dining: Up to $110,000 per location annually.
- Quick Service Restaurants (QSRs): $20,000 per location annually.
This highlights the importance of consistently improving star ratings.
Additionally, ASR directly reflects guest satisfaction and influences sales performance.
1. Guest Reviews are a Key Local Marketing Channel
The rise of digital platforms has transformed local store marketing. Guest reviews now serve as a primary tool for showcasing quality and connecting with the community.
And authentic responses to reviews—both positive and negative— are a must.
They demonstrate that brands are listening and care about their guests’ experiences.
For example, Keke’s Breakfast Cafe strengthens community ties with the review responses while using feedback to drive success.
Furthermore, it embodies their slogan, “Best Breakfast on the Block.”
Similarly, Velvet Taco empowers its general managers to respond directly to reviews.
This creates a personalized connection with guests.
2. Guest Feedback is a Predictor of Sales and Traffic
We at Black Box Intelligence constantly bang this drum but the experts at Keke’s Breakfast Cafe and Velvet Taco reaffirmed what we say.
Guest feedback is a treasure trove of data that informs both ops and marketing. And – more than that – it is a predictor of how a restaurant unit is going to perform in future.
Restaurants can use feedback to:
- Identify trends: Spot product issues, operational gaps, or recurring themes by region.
- Make proactive adjustments: Monthly and quarterly coaching align teams on areas for improvement.
- Plan marketing strategies: For instance, Velvet Taco launched a successful media campaign in Dallas. Using strong review data, Velvet Taco was able to indicate high guest satisfaction.
Average star ratings also act as a leading indicator of sales trends. A spike in positive reviews often signals impending sales growth. Meanwhile, negative reviews can highlight areas needing immediate attention.
3. Guest Feedback is a Great Source of Insight to Benchmark Against the Competition
Guest feedback also helps brands gauge their performance against competitors.
Take it from brands like Keke’s Breakfast Cafe. Their team identifies areas where they outperform competitors and protect those strengths.
Regional insights can also help brands adapt strategies to local markets.
Understanding competitor benchmarks ensures brands remain agile and responsive to market dynamics.
Conclusion
Guest feedback is no longer just a metric—it’s a roadmap for success. By actively engaging with reviews, leveraging data, and fostering collaboration between teams, restaurants can improve operations, strengthen brand loyalty, and drive sales growth.
As we often say, “Hard conversations with data just become conversations.”
By turning insights into action, brands can exceed guest expectations, paving the way to success.
If you’re ready to unlock the full potential of guest feedback, explore how Black Box Intelligence can help your brand stay ahead of the curve.