Why branding matters during a cost of living crisis

There is no shock that the next few months for consumers will be challenging, with energy prices soaring and inflation at over 10%, many are looking for ways to make their money go further. This means for brands that it’s never been more important to be understanding and to position themselves so they remain relevant as consumers look to switch from certain brands in order to save money. 

Effective branding has always been a vital part of any business. But within the food industry when consumers are looking to reduce the number of times they eat out, effective branding could be pivotal to the continuity of your business through a cost of living crisis. This is because, customers can learn to rely on a brand, from always providing your customers with the same experience in every aspect of your business, customers know what they’ll get. This eliminates the risk for the customer, so they feel confident buying from you which also builds customer loyalty. In turn, research shows that 57% of customers spend more money on brands they’re loyal to. Therefore, successful branding can enable your restaurant to remain strong during a difficult economic outlook.

Likewise, strong branding can enable your business to weather economic storms. This is more relevant than ever during a cost of living crisis. Consumers are looking to get the most possible value out of every pound they spend, so if your customers know they can always get the same great food that they love, then they will continue to buy from your restaurant. This is where branding comes in, to continually remind customers of your importance. Whilst branding will highlight your consistency as a business, which will allow customers to rely on your business to always get what they expect. But branding will also save you money in the long run, allowing your business to better handle times of economic difficulty, such a cost of living crisis. This is because, particularly when running a small business, owners can look for quick and cheap solutions which end up being changed further down the line. This is more costly and inconsistent. So, establishing a strong branding with a clear message and strategy from the offset will be beneficial to your business.

Furthermore, another advantage to your business having strong branding is that you will have lower price sensitivity. Price sensitivity is the degree to which the price of a product affects consumers purchasing behaviours. Therefore, having effective branding will mean your customers are willing to pay slightly more because you’re great at what you do. An example of this is seen by Oowee Vegan. They have designed a trendy and solid brand with a clear identity, which has enabled them to grow and develop a loyal customer base. This will mean that their customers will most likely continue to buy their food even if prices rise.

Finally, a great solution for effective branding is the AVI Media Design Studio. The Design Studio is a free tool for Restaurants to use to promote their business across digital channels. The tool enables you to be as creative as you like by starting a design from scratch or choosing from one of the many templates.