Running a restaurant in 2025 means facing ghost kitchens, hybrid models, TikTok-famous takeout spots, and the list goes on; who are cutting into your orders.
If you’re serious about staying competitive, you need to know how to analyze restaurant competition with more precision. That means gathering the right data, looking at the right metrics, and moving quickly on what you learn.
Step 1: Define Who (and What) You’re Competing With
Start by figuring out who actually counts as competition. You’ve got your direct competitors (same type of food, pricing, vibe), but don’t stop there.
Also think about:
- Delivery-only brands in your area
- Restaurants serving a similar audience even if the cuisine differs
- Meal kits or ready-made meals from grocery stores
- National chains stealing local traffic through heavy app promotions
Also, in 2025, competition isn’t just local — it’s digital. If a brand ranks higher than you on food delivery apps or Google Maps, it’s taking your traffic.
Bonus Tip: Reply to your reviews posted on platforms like Google & Facebook by customers.
Step 2: Gather Data From Everywhere
If you’re going to analyze restaurant competition properly, you’ll need to dive into both online and offline signals.
Some examples are:
- Google reviews: Not just the rating, but recurring keywords in feedback
- Instagram and TikTok: What’s performing, what’s being shared
- Menus and pricing: Are they bundling? Do they have exclusive offers on delivery platforms?
- Their website and ordering experience: Is it clunky or sleek? Does it support loyalty or promos?
Also, check whether your competitors are using modern tech to gain speed or scale. Discover how tech like AI kitchen display systems can cut delivery delays, optimize your kitchen flow and provide personalized ETAs.
Step 3: Analyze Their Menu & Pricing Strategy
This is where you can learn a lot with just a little research.
Look closely at their:
- Portion size vs. pricing
- High-margin items (check for lots of add-ons or modifiers)
- Seasonal or trend-based dishes
- Specials that drive delivery traffic (e.g., meal bundles, late-night deals)
If something is always “sold out” on the app, there’s a good chance it’s a top performer or a marketing trick. Either way, it’s worth noting.
Also compare what is missing. If everyone around you offers vegan options and you don’t, that’s a potential gap to fill.
Step 4: Pay Attention to Customer Experience
This part of restaurant competitor analysis often gets skipped, but it’s critical.
Order from your competition not once, but a few times. Try different day-parts. Here’s what to observe:
- Delivery time accuracy
- Food packaging quality
- Post-order communication (email? SMS? nothing?)
- Personal touches (thank-you notes, customizations)
Then scan reviews. Filter for 1-star and 5-star. Look at what people repeat. That’s what matters to your shared audience.
Step 5: Take a Look at Their Tech
Restaurants with modern systems are operating faster, cheaper, and smarter. So part of how to analyze restaurant competition in 2025 is knowing who’s gone digital and who’s falling behind.
Questions to ask:
- Are they taking orders on their own site or only through apps?
- Do they have tableside ordering or QR menus?
- Is their kitchen integrated with delivery workflows?
- Are they using tools to route orders, manage staff, or handle real-time inventory?
If they’re faster at fulfilling orders and better at communicating with customers, that’s a serious edge.
Step 6: Run a Mini SWOT or Market Analysis
A quick SWOT (Strengths, Weaknesses, Opportunities, Threats) or a basic market scan helps organize your findings.
You might realize:
- You’re stronger at late-night but weaker on lunch specials
- A rival is great at TikTok but ignores email marketing
- Their pricing is high, but their portions are small
- They have loyalty perks you’re missing
No need to overcomplicate this. Even a 10-minute brainstorm with your team can reveal strategic gaps worth addressing.
Step 7: Watch for What They’re NOT Doing
Here’s where the real gold is.
In your restaurant competitor analysis, look for what everyone’s ignoring and own that space.
Are they skipping breakfast delivery?
Are their websites painfully slow?
Are they using an omnichannel approach?
Are their Google Business profiles out of date?
These blind spots are your opportunities. Be the one that notices and fills what they’ve left open.
Step 8: Make It a Monthly Habit
The best operators don’t analyze restaurant competition once and move on. They bake it into their operations.
Set reminders to check:
- Your ranking vs. theirs for your top dishes or cuisine keywords
- Shifts in their social strategy
- Menu updates or promotions
- Review trends (volume, tone, source)
Final Thoughts
There’s no single formula for how to analyze restaurant competition in 2025. But one thing is clear: If you’re not watching your rivals — closely and often — they’re already ahead of you.
Use this framework. Make it your own. And don’t forget to turn your findings into action. Because in today’s market, data without action is just noise.
