The Dining Dynamic
Our latest, data-backed report on current food service trends
Having reached a point in this global pandemic where even ‘the new normal’ seems a passé turn of phrase, we’re certain that you no longer want to read about how many restaurants have shut down due to lack of federal aid, outdoor dining taking precedence over indoor, relentless campaigning and innovation by the community, and the overarching shroud of billions lost and soaring unemployment rates. We can’t fault you for feeling that way. We do too.
So we decided it was time to focus on the positives for a change. It’s only fitting that, after we brought you Tom Bené, President and CEO of the National Restaurant Association's blueprint for industry revival in the preceding article (titled Road to Recovery), we follow it up with some pragmatic advice and indicators of progress.
Indoor dining returned at limited capacity a couple of months ago, and while the economic implications of that do seem negligible, data from Technomic’s Economic Impact Navigator shows us that patrons can’t wait to return to their favourite establishments. The report indicates that 41% of people visited restaurants with the intent to dine indoors since it became available. Even though off-premises alternatives understandably remain a preference (68% for drive-thru and 63% for takeout), that is an extremely healthy number amid current circumstances. Perhaps our yearning for a comprehensive recovery in the restaurant business after Covid-19 is on the cards? Fingers crossed.
Leveraging a report by Manifest, we came across an intriguing trend in the now commonly-debated topic: the battle between restaurants and third-parties for the share of delivery orders. In July, 43% of consumers ordered delivery directly from a restaurant, while 37% ordered from a third-party delivery company. With an overwhelming number of reports also suggesting that people prefer to order their food directly from an establishment, either online or over the phone, this is definitely a source of optimism for restaurants as they can choose not to spend on third-party services, at least for the short term. However, data also suggests that a lot of consumers prefer the alternative ordering platforms simply due to the ease of use—they log into one platform and find a multitude of restaurants that are willing to deliver and those who are unsure of what type of food they want can also browse through dish options rather than a specific eatery’s menu. Maybe we could benefit from looking at fresh ways to drive direct orders? We have, after all, been innovating and adapting for the past several months.
Finally, we come to a topic that we’ve covered extensively over the past few weeks: Technology. Digitise or Die and The Big Picture stressed the importance of integrating technology in your development strategies. Now, let’s take a look at the numbers:
While there has been a slight decrease in orders placed via digital channels (down to 17% in August from 20% in April according to a report by NPD), it remains a sizeable source of revenue generation at the moment. Understandably, Gen Z comprises the most prolific users of these platforms. Technomic’s Consumer Visit Tracker indicates that 9% of these youngsters placed orders via app or website for pickup, compared to 8% of the overall consumer base. 7% ordered online for delivery, compared to 6% of overall consumers. For comparison, baby boomer/mature consumers ordered online for pickup 4% of the time, and for delivery just 1%. Gen Z also led the trend of kiosk or tablet ordering inside restaurants, with 8% of them opting for the facility, compared to a mere 6% of the sample. The message? Digitise. And market yourself to the youth!
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