Impacts of Social Media in Restaurant Business

Progress Report

Impacts of Social Media in Restaurant Business in Australia

Executive Summary

Social media has made it possible for businesses to connect with their clients. Australian restaurants have adopted the use of social media sites like Facebook and Instagram for product promotion and advertisement. The use of social media is cost-effective since a firm can reach customers without moving around physically. Further, customers can check the restaurants’ menus, offers, and location. The companies have social media attendants who can answer customers’ inquiries. Globalization has made it feasible for customers that are not in Australia but plan to visit the country to check for the available dishes. Most tourists do not have friends or relatives in Australia, and the only way they can get information about a particular place is through online platforms. Social media influences the success of companies. Therefore, the restaurants must ensure that they offer the best services to get positive reviews from clients and thus boosting the public image. People judge the performance of a company by reading reviews of customers.

This report will analyse the data, conduct empirical research, and determine the extent to which social media influences the restaurant businesses in Australia. The study has covered the aspects customers prioritized. Challenges to this research include establishing the population size that uses social media and finding the trends that companies can capitalize on. Thorough market research will be conducted to get the overcome these challenges.

Outline of Activities Undertaken so Far

Regarding the progress of the project, I have conducted extensive research of the literature review. Additionally, while doing research, I discovered that trends are ever emerging, and it is difficult to find the exact number of people that have access to social media. Companies have a rough time trying to adjust to the latest trends since they have to change their menus or appearance to be relevant and appealing to young people since they are the ones that use the Internet the most. However, part of this project is completed, and this progress is due to the available materials and literature on the impact of social media on restaurants. Currently, there is a range of studies on the effect of technology on businesses. I used those materials to develop the methodology for this project.

Additionally, I interviewed customers to get a firsthand perspective of their experience when engaging the social media personnel of the restaurants. I also interviewed some tourists and asked for their suggestions on ways that services at these restaurants can be improved. I chose to remove sensitive feedback from the report since it may affect the reputation of individuals and businesses. In the survey, I also included close and open-ended questions so that customers can answer questions freely. Therefore, I have added changes to the survey questions to ensure that the data collection is accurate and comprehensive.

Objectives and Scope: Any Changes

The scope of this project covers the extent to which social media impacts the restaurant business in Australia. Further, the project addresses the specific ways that the impact could be strengthened. By the end of this report, I will have guidelines and recommendations that companies can use to maximize their returns via social media campaigns. However, after conducting in-depth research, I decided to make some changes. For example, it is not necessary to include the key aspects that are prioritized by online customers since this objective will be covered under trends and market patterns. Online users prioritize the trends and the restaurants that most people recommend. Therefore, a firm should look into these features when maximizing its social media presence. This objective will be exclusively analysed to avoid leaving out valuable information. The use of survey will be beneficial given that customers will answer questions anonymously, and, therefore, will not be worried about being implicated by their statements.

Progress so Far

The report’s methodology has been analysed to ensure that the survey questions are objective. Moreover, I have revised the questions so that the final information would be valid and clear. I conducted mock interviews with Australian customers to test the effectiveness of the process. Later I made some adjustments to the data collection method. Features like trends change so fast, and it is advisable to ask questions that are in line with the current issues. Further, I was able to draft some recommendations based on the response of the clients. I visited some restaurants that are doing well in Australia and asked their staffs on their views about the impact of social media. Most them stated that social media has made them relevant. For example, they use YouTube to reach customers within and outside the country. Another approach involved finding the primary clients of these restaurants. This move entailed conducting another mock survey of the clients and tourists. Young people and employed adults are the ones that make use of social media. Therefore, companies should take into consideration the suggestion and feedback of this group.

Up-to-date Literature Review Related to Your Topic

Social media can be defined as a set of internet use that underlines the participation of users in the creation and exchange of content as well as mutual interaction (Grizane & Jurgelane 2017). The user interaction is based on the direct communication between the creator and user of information. The business world is becoming highly globalized and competitive, and thus the role of social media is diversifying (Grizane & Jurgelane 2017). Social media has become the most effective tool for marketing (Qureshi, Nasim & Whitty 2014). Further, the interests of citizens and entrepreneurs depend on the global trends. Restaurants create new services and products with the corresponding marketing activities (Buchanan, Kelly & Yeatman, 2017). The new economy has created conditions for restaurants to have organizational logistics based on a network structure that incorporates new technologies. Therefore, social media facilitates communication, coordination, and control (Grizane & Jurgelane 2017). International tourists make use of the social media networks to find the best restaurants in Australia. This trend has been made possible by the increase in internet speed and number of users. Analysts approximate that majority of the world’s population will be on at least one social media network by 2025 (Grizane & Jurgelane 2017). Restaurants owners are also paying attention to the role of social media to gain as much revenue as possible. The latest tendencies in the internet marketing and business communication indicate that the impact of social media is growing (Kim, Li, & Brymer 2016). Different methods can be used to estimate the return on investment in social media. According to researchers, one cannot make suggestions or recommendations based on the number of followers since many users do not reveal their real activity (Grizane & Jurgelane 2017). Likewise, about 50% of social media users have fake profiles. The social media sites that users visit frequently will be the ones that will form the basis of this report. Restaurant owners have to understand whether a user is a potential client interested in an offer, a regular customer that wants services, or a person who can shape the attitudes of other individuals in the online platform (Kim et al. 2015). Therefore, for a restaurant to achieve its goals and objectives, it must have social media professionals. The survey will include questions such as “Is it worthy to pay money for management of social media accounts?”

Social media is a tool that allows users to place and perceive information of a different kind and can thus be used as a tool for marketing purposes. Hence one has to be updated continuously (Grizane & Jurgelane 2017). Social media can be used by businesses to acquire the attention of the public, which is vital for reaching restaurants’ end-goals. However, there are challenges to this new trend; for instance, a significant group of internet users has to be addressed in an individualized manner (Grizane & Jurgelane 2017). The social media is constantly evolving. Likewise, both the content and technology are changing, and thus companies must continuously keep up with the trends. Social media gives restaurants a chance to gather information, monitor the opinion of the users, and involve the target audience about the available products and services (Grizane & Jurgelane 2017). Theories that support the influence of social media in business include the fact that it is a marketing principle that manifests itself in the user following a specific corporate user profile. Functional interactivity refers to social media’s power to engage the users in the comment section. Groundswell concept is a crucial theory for businesses since they have to dwell more on one’s personality and less on technologies. Companies have to know about the technographical profile of their clients. The return on investment in the social media is difficult due to the indirect means of achieving it. Restaurants connect with clients on different platforms like email and website live chat sections (Hanaysha 2017). Researchers propose that assumptions of social media impact can be based on networks like Facebook, Twitter LinkedIn, and Google + since they are common among users (Dunlop, Freeman & Jones 2016).

Social media is an important tool for firms to influence consumers’ attitudes and behaviors (Chen, Chen & Xu 2016). Further, restaurants can use the platform to interact with customers and manage customer relationship, monitor marketplace, and gain a competitive advantage (DiPietro et al. 2014). Social media is unique since consumers can share experiences and opinions with larger audiences via electronic means. The trend has enabled firms to reach clients outside Australia. Companies that operate globally understand the significance of social media as a marketing strategy. Social media is based on the idea that people can share information and thus foster a sense of community (Salleh et al. 2017). Likewise, people meet those with common interests, share ideas, and interact with each other on different topics. User-generated content and discussions are used by online groups to educate others about the products, brands, services, and issues and thus generating a kind of influence (Chen, Chen & Xu 2016).

Outcomes so Far Specific to Your Project Topic

The extensive research of literature review has facilitated the understanding of various concepts regarding the background and methodology. Different data analysis methods found in these studies can be applied to this report. The analysis methods will be useful to establish the relationship between social media and Australian restaurants.

Outline of Your Reaction to Your Supervisor and Your Group so Far

The consistent interaction with the academic supervisor has been beneficial to this project. Further, the communications gave this report a clear direction through in-depth analysis of technological factors and the necessary testing methods. Academic supervisor facilitated the understanding of structuring process a journal paper.

What Challenges are You Facing, and How Do You Propose to Address These?

The biggest challenge to this project is getting enough time to research online users within Australia. This project will take about Four months to get all the vital information. Additionally, there is a need for online platforms that researchers can find software for statistical and mathematical models.

Modified Project Plan and Timeline

Activities	Start Date	End Date
Preparation and testing of data analysis method	7 May 2018	13 May 2018
Distributing the survey to online users and restaurant owners	13 May 2018	27 May 2018
Data analysis based on received data	20 May 2018	27 May 2018
Correlation analysis	24 May 2018	27 May 2018
Result tabulation	28 May 2018	3 June 2018
Preparation for presentation	5 June 2018	8 June 2018
Meeting with supervisor	11 June 2018	11 June 2018
Preparation of final report and journal paper	12 June 2018	24 June 2018
Submission of a journal paper	24 June 2018	24 June 2018

Final Technical Paper Details

The below-mentioned contents will be mentioned as part of the technical paper:

Abstract.
Introduction.
Literature review.
Research methodology.
Conclusions.
Recommendations.
References.

Template for Your Journal Paper

Qureshi, I, Nasim, I, & Whitty, D, 2014, ‘Impact of Social Media Marketing on the Consumer Preferences in Restaurant Industry: An Empirical Study of Pakistan.’ IOSR Journal of Business and Management.

<http://iosrjournals.org/iosr-jbm/papers/Vol16-issue9/Version-5/I016956574.pdf>

References

Buchanan, L, Kelly, B, & Yeatman, H, 2017, ‘Exposure to Digital Marketing Enhances Young Adults’ Interest in Energy Drinks: An Exploratory Investigation.’ PLOS ONE, vol. 12 no. 2, pp. 1-16

Chen, Y, Chen, H, & Xu, L, 2016, ‘Social Media and eBusiness: Cultural Impacts on the Influence Process in Consumer Communities.’ IOP Conference Series: Materials Science and Engineering, vol. 142, pp. 1-11

DiPietro, R, Crews, T, Gustafson, C, & Strick, S, 2014, ‘The Use of Social Networking Sites in the Restaurant Industry: Best Practices.’ Journal of Foodservice Business Research, vol. 15, no. 3, pp. 265-284

Dunlop, S, Freeman, B, & Jones, S, ‘2016. Marketing to Youth in the Digital Age: The Promotion of Unhealthy Products and Health Promoting Behaviors on Social Media.’ Media and Communication, vol. 4, no. 3, pp. 35-42

Grizane, T, & Jurgelane, I, 2017 ‘Social Media Impact on Business Evaluation.’ Procedia Computer Science, vol. 104, pp. 190-196

Hanaysha, J, 2017, ‘Impact of Social Media Marketing, Price Promotion, and Corporate Social Responsibility on Customer Satisfaction.’ Jindal Journal of Business Research, vol. 6, no. 2, pp. 132-145

Kim, S, Koh, Y, Cha, J, & Lee, S, 2015, ‘Effects of Social Media on Firm Value for U.S. Restaurant Companies.’ International Journal of Hospitality Management, vol. 49, pp. 40-46

Kim, W, Li, J, & Brymer, R, 2016, ‘The Impact of Social Media Reviews On Restaurant Performance: The Moderating Role of Excellence Certificate.’ International Journal of Hospitality Management, vol. 55, pp. 41-51

Salleh, NH, Patah, MORA, Samsudin, A & Piah, ZHM, 2017, ‘Restaurant Advertisement through Social Media: Examining Followers’ Responses.’