Influence of Social Network on Restaurant Business: A Literature Review

This literature review discusses the influence of social networks on the restaurant business in London, UK. It covers the role of social networks in marketing and sales, the importance of brand value, and the potential negative effects of social media. Recommendations are also provided.

LITERATURE REVIEW
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Influence of social network on restaurant business.....................................................................3
CONCLUSION................................................................................................................................6
Recommendations........................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Social network is defined as a social structure contain the set of social actor, sets of
dyadic ties and other respective interactions with the social factors of the society. This report will
discuss the influence made by the social networks on the restaurant business operating in
London, United Kingdom. Henceforth, literature review will conduct over the social influence
made by the actors on the respective business sector of London, United Kingdom.
MAIN BODY
Influence of social network on restaurant business
As per the views given by (Salazar, 2018) social network is a term used to highlight all
the possible ways that can allow the business chain to establish the social connect of the
organization with other respective stakeholders associated with industry. Social network is more
like defining the target audience, developing the growth and development strategies of business.
Following check points related to the social network. Promotion of the network at various
platforms is also required in context to the social network. All these are a part of the social
network structure use by the restaurant chains in the United Kingdom. Social network is about
toe stablish social connects with various stakeholders that can play role in maximizing success of
the organization.
On the basis of the opinions reflected by (Sabermajidi and et.al., 2020) social networking
become one of the key to achieve success in restaurant business. Majority of situations and
scenarios are such where social network contribute in promotion and selling for the restaurant
businesses in the country. Generelly the restaurant owners try to run a social media marketing
campaign with the use of different social networks so that more number of leads can generate by
the organization that can further maximize or boost the overall success of the business. Social
media platforms like Facebook, Instagram, Snap chat are the most used platforms that contribute
in the m, marketing success of the restaurants chain in London. Majorly generation of leads
through high quality of marketing support to the restaurant business to drive the professional and
unique marketing campaigns over all these various social media platforms and applications.
Social network over different social media platforms such as Facebook, Instagram, Snap chat
and such other are not only contribute in achieving success of the marketing campaign but also
generation of lead is also highly influenced with these social networks created or established.
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The criticism has been established by (Oliveira and Casais, 2018), in scholarly articles that many
instances have been reported where the social network could play and contribute I am damaging
to the brand value of the entity. In restaurant business brand value is one of the core element or
factor that affect and influence to the success of the organization. Customer prefer to go at such
restaurant that hold the most favourable and positive brand value in term of food, ambience and
such other characteristics. Many times due to the poor social networking practices company do
not get to establish the favourable brand value that could completely damage to the growth and
success of the organization in respective target market. Due to the ineffective use of social
networking many times leads that are created from other sources are also get affected and
companies not being able to convert the lead into the sales in business.
The illustration is provided by the (Kucukusta, Perelygina and Lam, 2019) developing brand
value is one of the core feature social networking prove. Especially for the new restaurants
established in London social networking plat a massive role in designing and developing a
suitable;e brand value that can support to the overall growth and development of the restaurant
business. Regular interaction is required for establishing and developing a favourable social
network in restaurant business. These networks that use by the restaurant allow the organization
to interact on a regular basis with the potential current and future customers on a regular basis.
This allows organizational to interact with the customers about the products, services and such
related features offer by the organization to customers in respective target market. Real time
response are given to the customer that allow the restaurant to establish a loyal connect with the
customers. Brand value play an important role in restaurants specially at a location like London
where market is open and highly competitive. Taking competitive advantage is necessary for the
restaurant business. Social networking allow to the restaurant for entertaining the competitive
advantage that can further favour in enhancing to the overall brand value and market success for
these businesses.
On the other hand criticism has ben provided by the (Leung, Sun and Bai, 2019) on the ground
that apart from the positive publicity there are plenty of ways through which negative publicity
can be done over these social networking platforms and tools used by the restaurant chains. For
the social media this is very convince to post anything aga8bnst the brand or restaurant chain. On
social media any review portrait the wrong image of the brand can influence to the entire
business stream of the restaurant. People spread the negative comments faster on social media
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applications than the positive comments and reviews provided over these platforms. This is a
very negative and dark side of the social media platforms that they tend to focus more on the
negative sides. Many people in order to gain publicity spread rumours about different restaurants
and also the established restaurant chain hold the strategy where they spread the wrong and bad
rumours that can damage the publicity and brand image of other respective restaurant chain
operating in the same market.
As per the views provide by (Hlee and et.al. 2019) apart from the social media platforms
there are other multiple ways are also running that allow the companies and brand to establish
the diversified social networks for the organization. Holdings are also used in order to create a
social network in the market. Many restaurants to use this technique especially at the initial stage
of the business life cycle where they tend to use the holding at different locations to attract the
customers in the market. Various offers are also provided to the customer that can allow the
organization take on the competitive advantage in the market. Generally the mindset of the
customers in market that they get easily attracted by offers and discounts that can improve the
purchasing order of the target customers in the market. Social networks play a key role in
marketing offers releases by the restaurants. (Tussyadiah, Kausar and Soesil, 2018) stated that
they allow the brand to attract the attentions of the target customers easily in the market which
further lead to the success in respective target market. Author has mentioned in the study that
social networks allow the restaurants to established connections with different suppliers,
marketers, social media influencers that can easily contribute in the overall success of the
restaurant business. Currently the trend of social media influencers is going in which the famous
people try to promote the brand with the use of their social media platforms like Facebook,
Instagram and such other. This allows the restaurants business to promote the brand value in the
market. Restaurant business in the London are following this policy where they try to promote
the brands with support of various social media influencers. This strategy could provide a
massive amount of growth and development opportunities to the restaurants operate in London.
The criticism has been made by the (Chen, Riantama and Chen, 2020) on the ground that many
times the social media influencers tend to promote more than one brand belong to the same
sector. In order to earn extra profits influencers make strategic alliance with multiple restaurants
brand that most of the times result into the fact that customers get confused. This is an unethical
practice adopted by the influencers over the social media platforms.
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CONCLUSION
Social network contribute directly in the overall success of the restaurant chains in
London. The role social network play is to support the growth and development opportunities of
the business houses that can further maximize the growth and development opportunities of the
businesses. Marketing and sales are the two major functional directions associated with social
networks establishes by the organization. Restaurants chain try to establish to the loyal customer
base that can play a direct role in the overall growth and development opportunities for the
business. Many times controversies are also establishes for the restaurant chains due to the over
utilization of the businesses. This can consider as a major side effects of using and focusing on
social networks to cherish the growth and success of the business model.
Recommendations
 This is recommended that the restaurants must support a particular strategy in order to
use the social networks to cherish the brand success in target market.
 This is also recommended that the restaurant must focus on trying to expose the service
quality and product options that they are offering than only companies will be able to
support the overall grow and business success.
 Giving offers to the customers in also required while adopting the social network so that
more number of customers can get attracted towards the business idea of venture.
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REFERENCES
Books and Journal
Chen, W. K., Riantama, D. and Chen, L. S., 2020. Using a text mining approach to hear voices
of customers from social media toward the fast-food restaurant
industry. Sustainability. 13(1). p.268.
Hlee, S. and et.al., 2019. The moderating effect of restaurant type on hedonic versus utilitarian
review evaluations. International Journal of Hospitality Management. 77. pp.195-206.
Kucukusta, D., Perelygina, M. and Lam, W. S., 2019. CSR communication strategies and
stakeholder engagement of upscale hotels in social media. International Journal of
Contemporary Hospitality Management.
Leung, X. Y., Sun, J. and Bai, B., 2019. Thematic framework of social media research: state of
the art. Tourism Review.
Oliveira, B. and Casais, B., 2018. The importance of user-generated photos in restaurant
selection. Journal of Hospitality and Tourism Technology.
Sabermajidi, N. and et.al., 2020. Measuring brand-related content in social media: a socialization
theory perspective. Information Technology & People.
Salazar, J. M. R., 2018. A Comparison of The Effectiveness of Various Social Media Platforms
in Promoting Restaurants. Empirical Quests for Management Essences. 2(4). pp.1-14.
Tussyadiah, S. P., Kausar, D. R. and Soesilo, P. K., 2018. The effect of engagement in online
social network on susceptibility to influence. Journal of Hospitality & Tourism
Research. 42(2). pp.201-223.
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