News

Canadian survey finds nation's brands fall short on customer engagement tech

December 3, 2018

A report found that Canadian restaurants are not engaging with their customers as much as they should, and high employee turnover and payment fraud are challenging operators'  success, a news release said. 

To gain an understanding of the relationship between customer engagement with restaurant brands in Canada, SaaS digital marketing provider, Eagle Eye, conducted the survey of 2,000 Canadians and more than 200 food and beverage industry professionals.

Findings included: 

• 71 percent  said they eat out up to 10 times monthly, while younger adults and professionals at out up to 20 times monthly. 
• 62 percent polled spent up to $30 per visit.
• 30 percent of Canadian consumers are current restaurant loyalty club members.
• 13 percent of Canadians use third-party delivery services to order from restaurants.

The study found over the last year, restaurant delivery rates increased, as did fast food purchases and those for prepared food from groceries, takeout orders and third-party food delivery. 

Despite increased traffic on many fronts, the survey also concluded that many brands were failing to communicate frequently or adequately to prompt return visits, the release said. About 38 percent of consumers had no contact with a restaurant brand in three months, and only 22 percent had received offers promoting a first-time visit. About 60 percent said they would return for another visit if they got a coupon. Just 30 percent of Canadian operators polled said they used technology, data and insights to identify customers through promo codes, card payments or loyalty memberships.

"Today's food and beverage sector is increasingly competitive, but most operators lack insights into who their customers are, how often they visit and what they're ordering," Eagle Eye CEO Tim Mason, said in the release. "To capitalize on the revenue opportunities our report has uncovered, Canadian brands need to become digitally connected to gather customer data, create a direct marketing channel, and stand out from their competitors."

The report also revealed top challenges that F&B operators face across Canada, including:

• On the operational front, payment fraud continues to impact the industry with 79 percent of restaurant operators reporting customer- and staff-related fraud. Other operational challenges identified through the survey, include:
• 36 percent of restaurant owners struggle with rising costs, which was most prominent among independents and  brands in operation for more than 20 years. 
• Peak staff turnover rates ran as high as 200-300 percent.