How Companies like Yelp and Zomato Gathered Information on Restaurants
When companies like Yelp and Zomato decided to enter the restaurant discovery market, they faced unique challenges. One of the primary hurdles was securing comprehensive information about restaurants, especially during their startup phase with limited financial resources.
Initial Steps and Limited Resources
Both Yelp and Zomato approached this challenge with a strategic and resourceful mindset. To begin with, they hired a small team of marketing personnel, often numbering around 10 individuals. These individuals were the backbone of their operations, tasked with gathering information about local restaurants.
Strategic Strategy
The startup phase was intentionally focused on a single city to build a strong foundation. By concentrating their efforts on one city, they were able to gather a wealth of information in a timely and efficient manner. This approach allowed them to understand the local market dynamics, customer preferences, and the specific needs of their target audience.
Once they observed a significant increase in app store downloads and positive market response, they expanded their focus to the second city. This expansion was gradual and methodical, ensuring that both the company and the local market had sufficient time to adapt and grow together.
User-Friendly Platforms
Both Yelp and Zomato recognized the importance of creating a platform that was not only user-friendly but also highly interactive. They developed both an app and a webpage that catered to the needs of both restaurant owners and customers.
The platform included features such as easy submission of menu information, customer reviews, images, and ratings. This not only facilitated the gathering of comprehensive data but also helped in building a robust community of both restaurant owners and users.
Building Information Networks in High-Growth Areas
India has approximately 20 highly developed cities, which became the focal points for Yelp and Zomato. They strategically appointed marketing personnel in these cities and began the process of gathering information about all restaurants.
Given the relatively smaller number of restaurants in metro cities, approximately 1000 to 2000 restaurants, the information collection process became more manageable. However, it was still a significant undertaking that required meticulous attention to detail.
Conclusion
The success of companies like Yelp and Zomato can be attributed to their strategic approach, resourceful team, and the gradual expansion of their operations. By focusing on one city at a time, developing a user-friendly platform, and strategically appointing personnel, they were able to gather comprehensive information on restaurants effectively, even with limited funding in the early stages.
Today, Yelp and Zomato stand as leaders in the restaurant discovery space, not only providing users with valuable information but also offering restaurateurs a powerful platform to showcase their businesses.