Back to BlogMarketing

Competitive Analysis for Delivery Restaurants: How to Stand Out

Understanding your competition is key to winning in delivery. Here's how to analyze competitors and differentiate your restaurant.

SM
Sarah Martinez
Head of Product
July 20, 2024
10 min read

The Competitive Landscape


The delivery market is crowded. Customers have dozens of options, and they'll choose the one that offers the best value, fastest delivery, or most appealing food.


But most restaurants don't really understand their competition.


They guess at what competitors are doing, make assumptions, and hope for the best.


Restaurants that do competitive analysis see:

  • 20% better positioning
  • 15% higher prices (with same volume)
  • 30% better customer acquisition
  • Stronger market position

  • Here's how to do it right.


    Why Competitive Analysis Matters


    The Market Reality

  • Customers compare options
  • Price is easily compared
  • Reviews are public
  • Switching is easy

  • The Opportunity

    Understanding competition helps you:

  • Position effectively
  • Price competitively
  • Differentiate clearly
  • Win more orders

  • What to Analyze


    Menu Analysis

    What to look for:

  • Item selection
  • Pricing
  • Descriptions
  • Photos
  • Categories

  • Questions to answer:

  • What items do they offer?
  • How do prices compare?
  • What's their positioning?
  • What gaps exist?

  • Pricing Analysis

    What to look for:

  • Item prices
  • Combo deals
  • Delivery fees
  • Minimum orders
  • Promotions

  • Questions to answer:

  • Are they cheaper or more expensive?
  • What's their pricing strategy?
  • How do they handle promotions?
  • What's their value proposition?

  • Quality Analysis

    What to look for:

  • Customer reviews
  • Ratings
  • Photos
  • Descriptions
  • Brand positioning

  • Questions to answer:

  • What's their quality reputation?
  • What do customers say?
  • How do they position quality?
  • What's their brand image?

  • Service Analysis

    What to look for:

  • Delivery times
  • Order accuracy
  • Customer service
  • Packaging
  • Communication

  • Questions to answer:

  • How fast are they?
  • How accurate are orders?
  • How's their customer service?
  • What's their packaging like?

  • Marketing Analysis

    What to look for:

  • Social media presence
  • Promotions
  • Advertising
  • Content strategy
  • Brand messaging

  • Questions to answer:

  • How active are they?
  • What promotions do they run?
  • How do they market?
  • What's their brand message?

  • How to Conduct Analysis


    Step 1: Identify Competitors

    Direct competitors:

  • Same cuisine type
  • Same price point
  • Same target market
  • Same delivery area

  • Indirect competitors:

  • Different cuisine, same occasion
  • Different price, same customer
  • Different format, same need

  • List 5-10 competitors to analyze.


    Step 2: Research Each Competitor

    Platform research:

  • Check all delivery platforms
  • Review menus and prices
  • Read reviews
  • Analyze ratings

  • Website research:

  • Visit their website
  • Check social media
  • Look for promotions
  • Analyze branding

  • Mystery shopping:

  • Place test orders
  • Experience service
  • Evaluate quality
  • Assess packaging

  • Step 3: Document Findings

    Create a spreadsheet:

  • Competitor name
  • Menu items
  • Prices
  • Ratings
  • Strengths
  • Weaknesses
  • Opportunities

  • Step 4: Analyze Patterns

    Look for:

  • Common pricing strategies
  • Popular items
  • Service standards
  • Marketing approaches
  • Market gaps

  • Step 5: Identify Opportunities

    Based on analysis:

  • Pricing opportunities
  • Menu gaps
  • Service improvements
  • Marketing angles
  • Differentiation points

  • Competitive Positioning


    Price Positioning

    Options:

  • Premium: Higher price, better quality
  • Value: Lower price, good quality
  • Mid-market: Competitive price, balanced quality

  • Choose based on:

  • Your costs
  • Your quality
  • Market position
  • Customer expectations

  • Quality Positioning

    Options:

  • Premium quality
  • Consistent quality
  • Value quality

  • Choose based on:

  • Your capabilities
  • Market demand
  • Competition
  • Brand identity

  • Service Positioning

    Options:

  • Fastest delivery
  • Most accurate
  • Best customer service
  • Most convenient

  • Choose based on:

  • Your strengths
  • Market needs
  • Competition
  • Resources

  • Differentiation Strategies


    Menu Differentiation

    Ways to differentiate:

  • Unique items
  • Better quality
  • Healthier options
  • Customization
  • Special diets

  • Service Differentiation

    Ways to differentiate:

  • Faster delivery
  • Better accuracy
  • Superior packaging
  • Personal touches
  • Excellent service

  • Brand Differentiation

    Ways to differentiate:

  • Strong brand identity
  • Compelling story
  • Community connection
  • Values alignment
  • Unique experience

  • Pricing Strategy Based on Competition


    Competitive Pricing

    Match competitors:

  • Similar prices
  • Focus on quality/service
  • Win on other factors

  • Premium Pricing

    Price higher:

  • Better quality
  • Superior service
  • Strong brand
  • Unique value

  • Value Pricing

    Price lower:

  • Good quality
  • Efficient operations
  • Volume focus
  • Market share goal

  • Monitoring Competition


    Regular Reviews

    Frequency:

  • Monthly: Full analysis
  • Weekly: Price checks
  • Daily: Promotion monitoring

  • Tools:**

  • Manual checks
  • Price monitoring tools
  • Review tracking
  • Social media monitoring

  • Alerts

    Set up alerts for:

  • New competitors
  • Price changes
  • New promotions
  • Review changes
  • Menu updates

  • Using Competitive Intelligence


    Menu Decisions

    Use data to:

  • Add popular items
  • Remove underperformers
  • Adjust pricing
  • Create differentiation

  • Pricing Decisions

    Use data to:

  • Set competitive prices
  • Identify premium opportunities
  • Find value gaps
  • Test pricing strategies

  • Marketing Decisions

    Use data to:

  • Position messaging
  • Target promotions
  • Differentiate clearly
  • Win customers

  • Common Mistakes


    1. Copying Competitors

    Copying = no differentiation. Learn from competitors, but be unique.


    2. Ignoring Competition

    Not knowing competition = blind decisions. Always monitor.


    3. Price Wars

    Racing to bottom = no profits. Compete on value, not just price.


    4. No Differentiation

    Being the same = no reason to choose you. Differentiate clearly.


    5. Not Updating

    Competition changes. Update analysis regularly.


    Real Results


    A restaurant we work with did competitive analysis:

  • Analyzed 8 competitors
  • Identified gaps and opportunities
  • Adjusted pricing strategy
  • Differentiated clearly

  • Results:

  • 15% price increase (with same volume)
  • 20% improvement in positioning
  • 25% better customer acquisition
  • Stronger market position

  • Getting Started


  • Week 1: Identify 5-10 competitors
  • Week 2: Research each competitor thoroughly
  • Week 3: Document findings and analyze patterns
  • Week 4: Identify opportunities and create strategy
  • Ongoing: Monitor and update regularly

  • The Bottom Line


    Competitive analysis isn't about copying competitors—it's about understanding the market and positioning effectively.


    The restaurants that do competitive analysis see:

  • Better positioning
  • Higher prices
  • More customers
  • Stronger market position

  • Start by identifying your top 5 competitors. Research them thoroughly. Then use the insights to improve your position.


    For a restaurant doing $50k/month:

  • 15% better positioning = $7,500/month in value
  • Annual impact = $90,000+

  • Worth the effort? Absolutely.

    Tags

    competitive analysismarketingpricingpositioning

    Share this article

    SM

    Sarah Martinez

    Head of Product

    Sarah Martinez leads restaurant success at Chowfly, helping hundreds of restaurants optimize their delivery operations and recover lost profits.

    Want more insights?

    Browse our complete library of restaurant optimization guides.

    View All Articles