Operations
Consumers are ready to dine in but won't ditch to-go, delivery
Although the onset of COVID-19 made in-person dining impossible in March and April, consumers are starting to show interest again but aren't cutting cut back on delivery and carry-out orders.
August 20, 2020 by Carl Van Ostrand — VP of Consumer Insights, DISQO
Although the onset of COVID-19 made in-person dining impossible in March and April, consumers are starting to show interest again but aren't cutting cut back on delivery and carry-out orders, according to data collected from DISQO's Consumer Confidence Study. The survey, conducted weekly since March, has been polling more than over 10,000 to measure shifts in online shopping behavior, prevailing concerns and future outlooks.
Over the last two months, restaurant dining activity has increased by 166% and plans to dine out have increased by 292%,. That's a huge jump from the week of April 20 when dining out was under 1%, where it hovered for over a month. It wasn't until early June that dining out began to tick up, reaching 10%, and about 20% by the end of the month. It has remained around 20% through July and early August, according to the study.
The increase is due to a few factors; including the reopening of much of the country, which made it possible to serve customers again. Weather plays a role, too, as people are more inclined to eat outside in pleasant conditions than cold, rain or snow.
This is a non-data-backed claim, however, but I would wager that after weeks of being cooped up, many folks had an urge to get out and enjoy the food and experiences they missed and to take a break from cooking. People did report being more likely to leave the house in May and June than in April.
How to capitalize on this trend: Restaurants should leverage customer optimism by promoting in-person dining options and communicating the efforts they are taking to keep customers and employees safe. In today's digital-first world, that might mean sharing updates on social media, your website, an app, a newsletter, notes on your digital menu and/or signage in your physical space.
Takeout and delivery, augmented by digital services, is here to stay.
You might imagine that as people began to dine out more often, takeout and delivery would decrease; but that is not the case. Both takeout and delivery peaked in May and have remained high ever since. At the end of July, 49% of people surveyed had ordered food in the last week, and over 70% said they intended to in the next two weeks, on par with results from late June. Food delivery is less popular than takeout, but delivery did increase by 5% between July 6 and July 13, according to the survey.
It's not just what consumers are saying that matters. Actions matter, too. Throughout COVID-19, digital activity has increased across the top 10 QSR domains, and use of meal delivery services like DoorDash, Grubhub and UberEats has surged, according to DISQO behavioral data. These digital services were on the rise before the pandemic, but COVID-19 fast-forwarded adoption. Use is growing exponentially, across all age groups and in nearly every region.
Expect and prepare for change.
Throughout the pandemic, the restaurant industry has exhibited laudable creativity and flexible thinking from reimagining outdoor spaces and rolling out new products to transforming into bodegas by repackaging bulk goods and introducing digital menus accessible via QR codes. To survive, or even thrive, in these uncertain times, restaurants must expect and prepare for even more change.
While it is heartening to see positive trends in dining behavior, it is possible — even likely — that COVID-19 cases will increase in some areas, and these spikes will negatively impact consumer confidence. Certainly, weather patterns will change, making it less likely customers will want to eat outside in some regions.
Pandemic aside, both attitudinal and behavioral data support predict that customers won't stop using digital meal delivery services, so every brand needs a plan for fostering takeout and delivery. Restaurants should do their research to determine which digital solution will best serve their customers, while maximizing margins and operational efficiencies. They should also consider surveying clients and staff to understand their needs and preferences.
Even after we have developed a vaccine and life returns to normal, people will continue to use these convenient and user-friendly services. By building out these capabilities now, restaurants will be well-suited to weather the repercussions of COVID-19 to earn customer trust and to stand out in what is sure to be a digital-first future.
About Carl Van Ostrand
