How To Use Restaurant Customer Data To Improve Your Business And Grow Sales
Restaurants collect a ton of customer data. Every online order, email sign up, and reward program interaction generates valuable insights—but if that data just sits there, you’re missing a major opportunity.
Think about it: What if you could automatically send a special offer to a customer who hasn’t ordered in a while? Or adjust your staffing schedule based on peak ordering times?
When used strategically, customer data can help you personalize marketing, streamline operations, and create a better dining experience for your guests.
Maximize Your Takeout Profits
Learn how pairing delivery apps with direct ordering can result in a more profitable takeout strategy. Plus, get expert tips for turning app diners into direct customers, driving more commission-free orders, and simplifying order management.
In this article, you will learn:
- Why you should use your customer data to help your restaurant grow
- The different kinds of data you have available to you to use
- The best ways to use customer data to make better decisions
Let’s explore why customer data is one of your most powerful tools for growing your restaurant.
Why You Should Be Using Customer Data to Grow Your Restaurant
Customer data can look like just a list of names, numbers, and order histories, but when looked at more closely, it reveals patterns, preferences, and opportunities to make stronger connections with your guests.
That’s why 44% of restaurants are investing in restaurant technology tools to improve their business analytics—because customer data works.
Let’s break down the key benefits of leveraging your restaurant’s customer data.
1. You can increase revenue.
The more you understand your customers, the better you can fine-tune your marketing and pricing strategies. Instead of sending generic promotions, you can target customers based on their order history, spending habits, and visit frequency.
For example, you can send personalized emails to customers who haven’t visited in a while, reminding them of a dish and prompting them to place an order soon.
You can also use sales trends to adjust menu pricing and share customer-favorite menu items, helping you get the most out of high-demand dishes.
2. Give customers a more memorable experience.
Knowing your customer’s preferences can help you send personalized promotions that begin with their actual name, so when they receive a reminder to come back in or a monthly scheduled promo, it connects on a deeper level than generic messaging.
Data can help you create a menu that contains more of your customer’s favorites so you can phase out underperforming dishes. The result is a dining experience that feels more curated, keeping customers engaged and satisfied.
3. It improves operational efficiency.
Customer data can help you improve operations and make more informed decisions about staffing and inventory.
By analyzing order patterns, you can better anticipate demand and avoid over- or understaffing. Similarly, tracking buying trends allows you to reduce food waste by ordering only what you need—saving money while ensuring you always have the right ingredients on hand.
For example, if your data shows that a specific entrée sells more on Wednesday evenings than any other day of the week, you can adjust staffing and prep accordingly.
This helps streamline service, reduce wait times, and ensure online orders are prepared quickly and accurately.
What Kind of Customer Data Do Restaurants Have Access To?
Restaurants have access to more customer data than ever before and it comes from a wide range of sources, but many operators don’t fully grasp the full extent of what’s available—or how to use it effectively.
Let’s break down the different types of data, where it comes from, and how to handle it responsibly.
1. The most common types of customer data restaurants collect.
- POS Data: Every in-store and online transaction provides insights into order history, average spend, most popular menu items, and peak sales times.
- Online Orders & Delivery Data: Shows customer preferences, order frequency, delivery locations, and any modifications or special requests.
- Reservations & Waitlist Data: Helps track guest visit frequency, dining preferences, and peak reservation times.
- Loyalty & Rewards Programs: Provides customer contact details, repeat visit behavior, and redemption patterns.
- Email & SMS Lists: Captures guest information for direct marketing and can be used to send promotions, updates, or personalized offers.
- Social Media & Review Data: Includes customer feedback, ratings, and engagement insights, helping you understand brand perception and customer satisfaction.
Each of these sources gives you a clearer picture of your customers, their behavior, and how they interact with your restaurant.
2. Where your data comes from: First-party vs. Third-party data.
Not all customer data is created equal and where it comes from can make a big difference in how you use it.
- First-Party Data: This is the most valuable type of data because it comes directly from your customers. It includes POS transactions, online orders, loyalty sign-ups, and interactions on your website or app. Because you collect it firsthand, it’s highly reliable and allows for direct customer engagement.
- Third-Party Data: This comes from external sources, like delivery platforms or advertising networks. While useful for audience targeting, it’s less reliable than first-party data because you don’t own or control it. Relying too heavily on third-party platforms means you don’t have a direct line of communication with your customers.
3. Always use customer data responsibly.
Because data is so powerful, it comes with an inherent obligation to use it responsibly. So long as you use it ethically, customers will allow you to keep it as a direct link to them for years.
- Be transparent: Let customers know how you collect and use their data, whether through a privacy policy or a simple disclosure at sign-up.
- Follow data protection laws: Ensure you comply with any regulations regarding customer data storage and usage, such as GDPR or CCPA.
- Use data to enhance—not invade—customer experiences: Personalization is great, but don’t overdo it to the point where customers feel their privacy is compromised.
The data you have access to can help you create a roadmap to higher sales and more repeat customers, but only if you know how to turn those insights into action.
Key Ways to Use Customer Data for Smarter Business Decisions
Customer data is only as valuable as the actions you take to use it. By studying your data you can fine-tune your marketing strategies, optimize your menu, boost customer retention, and improve operations.
Here’s how to put your customer data to work:
1. Personalized marketing and promotions.
One-size-fits-all marketing tactics don’t work. Restaurant technology has come far enough that customers expect personalized communication, and your data makes it easy to deliver.
By segmenting customers based on order history, frequency, and preferences, you can send targeted promotions that feel relevant rather than random. For example:
- Win-back campaigns: Send a “We haven’t seen you in a while” offer to customers who haven’t visited in over a month.
- Monthly promotions: Keep customers engaged with a special limited-time offer each month, like a discount on their next order using a promo code.
- Loyalty perks: Offer VIP deals to your top spenders, encouraging them to keep choosing your restaurant.
By personalizing your marketing, you increase engagement, drive repeat business, and make customers feel valued.
2. Optimize your menu based on sales trends.
Your menu isn’t just about what you want to sell—it should reflect what customers actually want to buy. Sales data helps you make informed decisions about pricing, portion sizes, and seasonal updates.
- Spotting Best-Sellers & Low-Performers: Your POS data can tell you which menu items fly off the shelves and which ones barely get ordered. If a dish isn’t selling well, it may be time to promote it differently, tweak the recipe, or remove it altogether.
- Seasonal Adjustments: Analyze past sales trends to identify which items perform well during certain times of the year. If a specific dish sees a surge in the summer, consider making it a seasonal special to create demand.
- Smart Pricing Strategies: If data shows customers are frequently modifying a dish (e.g., adding or removing ingredients), you could turn that add-on into a premium menu item.
Using your collected data means your customers have a hand in creating the perfect menu—one filled with guest favorites and dishes everyone is excited to order.
3. Improving customer retention.
Acquiring new customers is expensive—it’s easier (and cheaper) to keep existing customers coming back. Customer data helps you identify loyal guests, reward them, and reduce churn.
- Recognizing Loyalty & Rewarding Repeat Guests: Loyalty program data helps you identify your best customers. Offering exclusive perks, VIP experiences, or early access to specials makes them feel valued and encourages repeat visits.
- Predicting & Preventing Churn: If a once-regular customer suddenly stops ordering, that’s a red flag. Use order frequency data to identify at-risk customers and send personalized incentives to re-engage them before they’re gone for good.
Using data allows you to nurture customer relationships so once loyal guests aren’t forgotten and can be incentivized to return.
4. Improve your operational workflow.
Customer data isn’t just about sales and guest relationships—it also helps improve your behind-the-scenes operations to keep your restaurant running without interruption.
- Staffing Based on Demand: Instead of guessing how many employees you need on a given night, use historical sales data to predict peak hours and adjust schedules accordingly.
- Inventory & Waste Reduction: If you know which ingredients are in high demand (and which aren’t), you can fine-tune ordering to minimize waste and avoid shortages.
- Tracking Order Fulfillment Times: Your POS system and online ordering platform collect data on how long it takes to prepare and serve each order. By analyzing this, you can spot inefficiencies, adjust kitchen workflows, and ensure faster service during peak hours.
Before making business or operational decisions, let your customer data guide you. You might have a plan in mind, but the data could reveal a smarter, more efficient approach that saves you time, money, and unnecessary hassle.
Getting Started: Simple Steps to Put Your Data to Work
You don’t need a complex system in place or an advanced analytics team to get started using your customer data—small, consistent efforts can make a big impact over time.
And here’s the truth: the people that create customer data tools make them for restaurant operators—meaning you don’t have to have a data science degree.
The systems are purposely made easy to navigate and easy to understand so you can study the report, make informed decisions, and get back to work running your restaurant.
So if you feel intimidated by the idea of using customer data, don’t be, it’s a lot easier than you think.
Now, here are three steps to put your data to work.
1. Regularly Review Your Data
Set aside time each week or month to check key data points, such as sales trends, customer order frequency, and best-performing promotions. Keeping an eye on this information helps you catch trends early and make smarter business decisions.
- What to look for: Are certain menu items declining in popularity? Are online orders increasing on specific days? Use these insights to adjust your offerings and operations.
- Where to find it: Your POS system, online ordering platform, or loyalty program dashboard will have built-in reporting features to help you track trends.
2. Automate Marketing with Data-Driven Tools
Once you understand your customer data, automation can do the heavy lifting for you. Many automated email marketing tools integrate with your online ordering and loyalty program to send targeted messages.
- Examples of automation:
- Send a “Haven’t seen you in a while” email to customers who haven’t ordered in a few weeks.
- Automatically deliver a welcome email after customers sign up.
- Remind customers about loyalty program progress so they know how close they are to earning a reward.
These small touches make a big difference in keeping customers engaged without requiring extra work from you.
3. Test Small Changes and Track the Results
The best way to optimize your restaurant using customer data is through small, trackable experiments. Instead of making major overhauls, test minor adjustments based on what your data tells you.
- Examples of data-driven tests:
- If you notice certain menu items sell better at specific times, try adjusting pricing or promoting them differently.
- If sales dip on a certain weekday, test running a limited-time special to increase traffic.
- If customers frequently modify a dish, consider making that customization a permanent menu option.
Track results for a few weeks, then refine your approach based on what works. Small changes add up, and over time, they can significantly improve your restaurant’s profitability and customer satisfaction.
Use Your Customer Data to Start Growing Your Restaurant Today
Would you like to learn more about how customer data can drive more sales, improve your restaurant’s efficiency, and create a better customer experience?
Contact ChowNow and you’ll learn how direct online ordering and a rewards program are the fastest ways to collect customer data so you can put it to work.
