Technology
Customers not so keen on tech?
To help operators decide in what to invest their resources, Revenue Management Solutions polled diners about their changing work habits, technology and current and future dining intentions. Below are five takeaways.
November 5, 2021 by Jana Zschieschang — CMO, RMS
Targeting today's consumers is far more difficult than in pre-pandemic days. A few short years ago, employed guests (so-called "office workers") could be counted on for coffees, on-the-go breakfasts and working lunches. Families dined in and ordered cocktails and desserts. Drive-thru was mostly for individuals, and coffee shops were a "third place."
That's all changed. Despite rising vaccination rates and easing restrictions, we're likely never going back to our pre-pandemic conditions. To help operators decide in what to invest their resources, Revenue Management Solutions polled 900 diners across the U.S. Its Q3 quarterly survey asked questions about vaccination mandates, changing work habits, technology and current and future dining intentions.
Here are five takeaways.
1. Home is where the heart (and breakfast, lunch and dinner) is
Though some respondents were back at the office, we have not seen a full return to pre-2020 workdays. Just 10% of those surveyed changed their work environment from home to an office over the past three months, down from 11% in May. Similarly, the number of respondents who moved to a hybrid environment (working from home and the office) dipped from 10% in May 2021 to 7% in September.
Conversely, 28% reported that they were still working from home, a number that has remained static since May 2021. Another 9% switched their work environment to home in the past quarter.
2. Breakfast is on the rise
Though overall growth was limited for segments reliant on work commutes, breakfast and casual eateries/coffee shops saw strong growth over the summer. A growing 15% of respondents reported ordering from a breakfast spot "more or much more" compared to 8% in May 2021. Nearly 1 in 5 frequented a casual restaurant/coffee shop more in September compared to 13% in May.
As you would imagine, respondents who ordered more from breakfast and casual eateries were back at the office. It's unclear if this trend will continue to rise given the relative stability of work environments, but some new habits are forming.
3. Drive-thru is still tops
Speaking of habits, the drive-thru remained a staple, particularly for families and younger generations (Gen X, millennials and Gen Z). Nearly three-fourths of all respondents reported using the channel at least 1x weekly, slightly declining from May 2021. Takeout and delivery have remained constant since May 2021 — 66% used takeout at least 1x weekly and 52% used delivery.
Going forward, drive-thru services will see the least overall change. Asked how often they plan to use the different channels in the future, 19% said they would use drive-thru "more or much more" compared to 20% who expected to use the channel "less or much less."
4. Technology is not a catch-all
The tidal wave of delivery seemed to be ebbing, particularly among orders placed on third-party platforms. Higher prices were one reason, but all ages were craving the human touch.
When asked about technology usage, a majority of respondents preferred to go online for research, providing feedback and using loyalty programs. But when it comes to placing an order? Bring on humanity. Six out of 10 respondents called the restaurant directly, compared to 54% who use the restaurant website and 50% who used the restaurant-owned app. Third-party apps were the least popular: Just 39% of respondents preferred an outside platform.
It turns out trust was a significant factor. Of all respondents, 60% were concerned with the accuracy of the food when ordering delivery. Among boomers, that percentage jumped to 70%.
Operators should consider a hybrid of human and digital for off-premise sales, while also setting their sights on takeout. When asked about future use, 17% of respondents said they'd use takeout "more or much more" going forward compared to just 14% who said they will increase their orders by delivery.
5. What the future holds
The future might be described as partly cloudy.
Sales for limited-service restaurants remained strong. Stronger, in fact, than the "good times" of 2019. Sales were up 8% in September 2021 compared to September 2019.
Yet, QSR traffic was down 14% compared to 2019, and optimism wass waning. In May 2021, 71% believed the dining segment would recover within the next six months. This figure dropped to 46% in September 2021.
Consumers weren't as eager to dine out, either. Across all dining channels (delivery, takeout, drive-thru and dine-in), the intention to dine "less or much less" outweighed "more or much more."
Though the environment is in flux, one fact has remained constant throughout the last 18 months: People value restaurants, whether they're dining in or eating restaurant-prepared food at home.
A key to managing through these ever-changing times? A data-driven approach. Whether it's analyzing the competition or your transactions, knowing what your customers want and how much they'll pay for it allows you to adapt, change and succeed.
About Jana Zschieschang
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