Restaurant owners in Utah work hard for their businesses. In the dynamic and cutthroat restaurant industry, competition is fierce, and one mistake can lead to a significant decline in sales. Today’s industry environment is even tougher due to the prevalence of online reviews. These reviews can make or break a restaurant; positive reviews lead to growth, while negative reviews can cause customers to seek other restaurants in their area. Just as Utah restaurant insurance protects against risks, how a restaurant handles negative reviews is also a powerful risk management strategy. In this guide, we will explore the best ways to address negative reviews of restaurants, allowing you to respond with style and with grace.
The Power of Online Reviews
Over the past decade, online restaurant review sites like Yelp, TripAdvisor, Zomato, and OpenTable have transformed the restaurant industry. Studies have shown that as many as 92% of all customers research businesses online before patronizing them, and this includes reading reviews posted by other customers. How important are these reviews for restaurant owners? Consider the following statistics:
- 88% of consumers trust online reviews as much or more than recommendations from friends and family.
- 72% of consumers say that positive reviews help to build trust in the businesses they patronize.
- Customers spend about 31% more on average at businesses with excellent reviews.
- The average consumer will read 4-6 reviews before choosing to do business with a local company (including restaurants).
- 86% of consumers will hesitate to make a purchase from a business with negative reviews.
- One negative review can cost a business as many as 30 customers on average.
With these numbers in mind, it is clear that Utah restaurant owners have a financial stake in the quality and quantity of reviews posted about their establishments. Managing online reviews is an important part of the risk management puzzle, supplementing the liability protections of Utah restaurant insurance.
Two Approaches to Managing Negative Reviews
It is all but inevitable that a restaurant will receive a negative review at some point. A single unsatisfied customer can quickly erase the hard work you’ve put into building your restaurant’s reputation. How, then, can you address these negative reviews? There are two primary actions restaurant owners can take when a negative review is posted to a third-party site:
Reactive – responding to negative reviews in a way that is apologetic and fair. Restaurant owners can turn a negative into a positive by offering to make the situation right – such as taking responsibility for shortcomings in service delivery – can demonstrate that customer satisfaction is your top priority.
Proactive – avoiding negative reviews from the start by focusing on superior foods, beverages, and customer service. If customers leave your establishment satisfied, they are far more likely to post a favorable review.
In both of these actions, it is important to understand that reviews serve as a learning tool for restaurant owners. Whether positive or negative, the information posted can pinpoint areas where you can improve your operations or reinforce the aspects your customers respond favorably to. No matter how bad a review is, perhaps the biggest pitfall for restaurant owners to avoid is to respond negatively. This can have the effect of reinforcing unfavorable perceptions of your business, further eroding the trust and the reputation you have worked so hard for.
Fostering Positive Reviews
As a risk management tool, online review responses take their place next to Utah restaurant insurance and safety-oriented workplace practices. Although negative reviews are part and parcel of the restaurant industry, restaurant owners have the power to reduce the economic and reputational impacts these reviews have by promoting positive reviews. Tips for encouraging positive reviews include:
- Offering discounts for people posting 5-star reviews on Yelp or your favorite review site.
- Hosting or sponsoring community-oriented events at your establishment.
- Creating rewards programs for repeat customers/repeat reviewers.
Even with these tips in mind, the most powerful way to encourage positive reviews is to place primary focus on excellent service delivery. If your restaurant provides a positive, memorable experience for guests, they are far more likely to post positive reviews as well as share their experiences with friends. With Utah restaurant insurance and with a commitment to outstanding guest experiences, restaurant owners in the state can enjoy success well into the future.
About BTC Insurance Services
Founded in 2011, BTC Insurance Services has proudly served Utah businesses with comprehensive and custom-tailored insurance coverages for a decade. We pride ourselves on fostering long-term client relationships with a personalized and hands-on approach, and have established a reputation built on quality and transparency. For more information about our products and services, we invite you to contact one of our reputable agents today at (855) 944-3457, or send us a message here.
