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Declining Traffic: Seek First to Understand

Empty restaurantDeclining traffic is a fact of business that probably almost all owners face sooner or later. But how many of them jump on a solution without understanding the cause? It doesn't take too much gray matter to understand that that may not be the best approach.

Writes Bob Donofrio, SVP of consulting services, Revenue Management Solutions:

Customer traffic is one of the key metrics restaurant operators use to measure success. When traffic is down, many chains turn to new promotions or even consider lowering prices, but will these actions reverse the trend?

Before you take action, first take time to understand the change in traffic and the underlying causes.

Two key steps in deciding how to address traffic issues are to determine if it is a sustained problem or a short-term trend and to determine whether the decrease is caused by internal or external factors. — Fast Casual

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