SWOT Analysis for Restaurants: Guide & Template

Running a restaurant isn’t for the weak — the hours are long and the margins are slim. Restaurants are also intensely vulnerable to internal and external threats, such as regulatory changes, economic shifts, evolving consumer preferences, staff departures, increased local competition…and so on. If there were a way to gain a competitive edge, would you do it?

Restaurant owners who adapt to market trends and invest in strategic planning are better equipped to thrive, regardless of what’s happening in the industry.

Enter the restaurant SWOT analysis.

This simple exercise allows you to capitalize on what you do well, address shortcomings, leverage growth opportunities and prepare for potential challenges. In short, the SWOT is a roadmap for steering your restaurant toward sustainable growth and profitability.

What is a restaurant SWOT analysis?

A restaurant SWOT analysis is an exercise in which you analyze your restaurant’s strengths (S), weaknesses (W), opportunities (O) and threats (T). SWOT is an acronym that’s created by combining the first letter of each analysis category.

While most operators conduct SWOT analyses when creating a business plan or defining their marketing strategy, you can perform one whenever you need to guide important business decisions.

How to conduct a restaurant SWOT analysis

Conducting a SWOT analysis is a straightforward, collaborative exercise. Here’s how to do it well:

Gather your management team and employees and ask them to discuss what they think are the restaurant’s strengths, weaknesses, opportunities and threats. You’ll get more diverse feedback and perspectives if you do this with a group. For even more insights, consider conducting focus groups with customers or sending them automated feedback surveys.
Set an objective. SWOT analyses work best when you can tie them back to specific goals, such as improving customer satisfaction, boosting your online presence or attracting new diners.
Create a SWOT matrix. A SWOT is typically visually presented in a two-by-two matrix, in which strengths and weaknesses are listed in the top row, and opportunities and threats are listed in the second row. Strengths and weaknesses are considered internal factors, while opportunities and threats are external factors.

Here’s a closer look at what you should examine as you conduct a SWOT analysis.

Strengths: What your restaurant excels in

Start by brainstorming the things your restaurant does best: what you’re known for and what you do better than the competition. These are the aspects of your business that keep guests coming back and the things you want to maintain no matter what changes you make along the way.

Some examples of strengths could be:

An authentic menu

A strong following of loyal customers or a robust loyalty program

Rave reviews from critics, influencers and the community (online, too)

Loyal staff

A winning location (high foot traffic, good views, tourist destination, etc.)

Elevated customer experience supported by events, unique menus, personalization, etc.

Advanced operations, such as reservations and prepayment technology and robust CRMs that collect guest data

Weaknesses: Where your restaurant can improve

Next, identify areas where your business struggles and needs improvement. For this category, focus on internal weaknesses you could enhance to grow the business. Potential weaknesses include:

Inexperienced staff and/or high staff turnover

Inefficient or outdated technology and systems

Poor brand reputation (or little to no reputation at all)

High operating costs or menu prices

Weak online presence on social media, Google, etc.

Limited availability (location, size of restaurant, etc.)

Limited guest retention and loyalty

Opportunities: What you can do to grow

List actionable steps your restaurant can take to boost its profit margins or expand the business. Unlike strengths, which are internal factors, opportunities are external factors, such as:

Introducing new menu items

Adding new services to attract more customers, like takeout or online ordering

Menu refinements to accommodate more dietary preferences and restrictions

Partnerships with influencers, brand ambassadors and/or other local businesses

Upgrading technology to streamline operations and reduce costs

Transitioning to direct reservations platforms for better customer experience and upselling opportunities

Opening new locations

FYI

According to our 2025 U.S. Restaurant Industry Trends Report, 77% of operators struggle to personalize the guest experience — despite its proven impact on loyalty and revenue. This gap presents a major opportunity for operators to differentiate with scalable personalization through a restaurant CRM.

Threats: Potential challenges that could impact your success

Threats are external factors that might pose risks to your restaurant’s success. Here, you’ll monitor economic changes, competitor strategies and economic shifts to proactively identify risk. Some threats to a restaurant can include:

Labor shortages paired with accelerated wage growth

Supply chain interruptions

Rising costs from vendors

Changing customer preferences (experience, cost, healthier eating, etc.)

Regulatory and/or compliance updates

Increasing demand for takeout and delivery services

Restaurant SWOT analysis template

A SWOT analysis is traditionally displayed in a two-by-two matrix to help organize your thoughts, with strengths and weaknesses in the top row, and opportunities and threats in the second row.

Download this free template to help you conduct your restaurant’s SWOT analysis.

SWOT Analysis Template

Download this free template to build a SWOT analysis for your restaurant.

Five Figs SWOT analysis example

Below is an example of a SWOT analysis for fine dining concept Five Figs.

Strengths:

Convenient location: Five Figs is situated in the heart of downtown Raleigh and offers parking, which is rare in the city.

Consistent quality and unique concept: Known for fusion of modern techniques and classic flavors, the menu features unique creations like truffle-infused bone marrow and heirloom tomato gelato, making it a destination for food adventurers.

Elevated service and ambiance: The chic, industrial-meets-garden ambiance, featuring live jazz on weekends and curated art displays, provides an unmatched sensory experience that draws in diners.

Weaknesses:

High menu prices: While the high-quality ingredients and artisanal approach justify the pricing, Five Figs may be perceived as a special-occasion spot rather than a regular dining choice for the average consumer.

Employee turnover: Five Figs struggles with keeping top-tier talent, especially in key roles like sommeliers and sous chefs, due to competitive salaries in the area.

Supply chain vulnerabilities: Reliance on rare, sustainable ingredients like wild-caught fish and heirloom vegetables sometimes results in availability issues, especially when global supply disruptions hit, leading to menu changes at the last minute.

Opportunities:

Loyalty program: Introduce a tiered loyalty program where repeat diners earn rewards such as complimentary courses, exclusive access to special events and early reservations. This would increase customer retention and give regulars a reason to continue visiting.

Staff development and retention programs: Create a structured career development program for employees, offering opportunities for advancement, mentorship and specialized training.

Dynamic pricing models: Implement dynamic pricing during off-peak hours to attract a broader range of customers while managing operational costs.

Threats:

Economic uncertainty: During financial downturns, Five Figs faces the risk of reduced discretionary spending, with diners opting for casual dining experiences over the elevated offerings of a fine-dining establishment.

Increased competition: The fine dining space is becoming more saturated, with new entrants offering similar high-end experiences, unique concepts and innovative menus. This could lead to market fragmentation, requiring Five Figs to continually differentiate itself to maintain its share of the audience.

Rising operational costs: An increase in the cost of organic and specialty ingredients, coupled with higher energy bills and labor costs, may put pressure on profit margins, especially as Five Figs prides itself on sourcing only the best quality ingredients.

Gather more guest insights with SevenRooms

A SWOT analysis is a smart starting point to assess your restaurant’s performance, but it only tells part of the story. Today’s consumer expectations are evolving fast — and staying ahead means digging deeper. To truly understand your guests, you need more than a matrix. You need data-driven answers to the right questions.

That’s where SevenRooms comes in. Our all-in-one CRM Marketing and Operations platform helps you uncover the insights that matter most — from guest preferences and behaviors to feedback that fuels smarter decisions. With automated post-dining surveys and rich guest profiles, you’ll have the tools to optimize the experience, drive repeat visits and introduce new offerings with confidence.

When paired with your SWOT analysis, this level of insight becomes a strategic advantage — powering more effective marketing, sharper operations and a roadmap built for long-term growth. Learn more.

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