harnessing technology to drive off-premise sales · harnessing technology to drive off-premise...
TRANSCRIPT
Harnessing Technology to Drive Off-Premise Sales
Hudson Riehle, National Restaurant Association
Melissa Wilson, Technomic, Inc.
© 2019 National Restaurant Association and Technomic, Inc.
58%of restaurant
occasions are now off-premise
2
© 2019 National Restaurant Association and Technomic, Inc.
Consumers Using All Channels More Than a Year Ago
3
39%Drive-thru
34%Delivery
29%Takeout
44%18- to 34-year-olds
© 2019 National Restaurant Association and Technomic, Inc.
What’s Behind This Shift?
4
54%
45%
29%
28%
23%
61%
57%
31%
31%
19%
It’s more convenient
Prefer not to leave thehouse
The weather was bad
Don’t have time to go to the restaurant
Faster than takeout
18-34 35+
© 2019 National Restaurant Association and Technomic, Inc.
42%order from
foodservice more often
36%trying new restaurants more often
40%order from a wider
variety of restaurants
Impact of Increased Off-Premise Use
5© 2019 National Restaurant Association and Technomic, Inc.
© 2019 National Restaurant Association and Technomic, Inc.
Younger Consumers Using Delivery Across All Dayparts
6
50%
47%
72%
53%
81%
56%
Breakfast/brunch
Midmorning snack
Lunch
Midafternoon snack
Dinner
Late-night meal/snack
18-34
Consumers Ordering Once a Month+
© 2019 National Restaurant Association and Technomic, Inc.
Important to Understand Path to Purchase
Type of cuisine
Time until ready
Location
Delivery fee
Total cost
Specificrestaurant
7
The Technology Connection
8© 2019 National Restaurant Association and Technomic, Inc.
© 2019 National Restaurant Association and Technomic, Inc.
Consumers Embrace Technology for Orders
9
56%
56%
41%
43%
37%
21%
13%
Restaurant's own/first-party website
Phone call
Third-party app
Restaurant's own/first-party app
Third-party website
Voice assistant
Via text
Ordering Methods Used in Past Year
© 2019 National Restaurant Association and Technomic, Inc.
Technology=Convenience
33%say that many of the
restaurants I order from do
not have their own sites
35%agree that it is easier to
customize their order on a
restaurant’s own site or app
35%say that ordering on a third-
party site/app is faster than
the alternatives
10
© 2019 National Restaurant Association and Technomic, Inc.
37%use restaurant apps
because they like the loyalty program
26%use third-party apps because they like the loyalty program
11© 2019 National Restaurant Association and Technomic, Inc.
© 2019 National Restaurant Association and Technomic, Inc.
Percent of Consumers Belonging to Loyalty Programs
Overall
42%
18-34
50%
High Interest in Loyalty Programs
85%Want more restaurants to
offer loyalty programs
24%Of operators currently offer a loyalty program
12
Operator View
13© 2019 National Restaurant Association and Technomic, Inc.
© 2019 National Restaurant Association and Technomic, Inc.
Operators Say Off-Premise Orders Have…
14
92%
87%
81%
68%
68%
Generated additional sales
Brought new customers totheir business
Increased profitability
Increased average check
Impacted operations
78%say off-premise is a
strategic priority
© 2019 National Restaurant Association and Technomic, Inc.
66%of restaurant
operators offer third-party delivery
57%say this is more important than it was two years ago
15© 2019 National Restaurant Association and Technomic, Inc.
© 2019 National Restaurant Association and Technomic, Inc.
Third-Party Technology Impact
16
40%
55%
4%
Method of receiving
third-party orders
Use a tablet to enter into POS system
Integrated with POS system
Other
of operators working with third-party services report having two or more tablets to handle orders
79%
© 2019 National Restaurant Association and Technomic, Inc.
Companies Are Investing in Off-Premise
17
69%
40%
31%
29%
28%
Partnering with a third-partydelivery service
Adding/updating technologyfor internal use (POS)
Investing in higher-qualitypackaging for foods
Investing in higher-qualitypackaging for beverages
Adding more staff other thandelivery drivers
74%say the company is investing
in off-premise programs
Delivery Investments
© 2019 National Restaurant Association and Technomic, Inc.
Operators’ Takeout Investments
18
27%added/updated customer-facing order/payment
amenities
52%
50%
44%
Remodeled to add off-premise services
Added/updatedtechnology for internal
use (POS)
Investing in higher-quality food packaging
58% of casual-dining operators
© 2019 National Restaurant Association and Technomic, Inc.
24%of restaurant
operators offer curbside pickup
67%say this is more important than it was two years ago
19© 2019 National Restaurant Association and Technomic, Inc.
TechnologyDisconnect
20© 2019 National Restaurant Association and Technomic, Inc.
© 2019 National Restaurant Association and Technomic, Inc.
29%of operators admit they are lagging the industry in technology
21© 2019 National Restaurant Association and Technomic, Inc.
© 2019 National Restaurant Association and Technomic, Inc.
56%of consumers place delivery
orders via restaurant websites
45%of operators offer
this option
43%of delivery users place
orders via restaurant app
18%of operators offer mobile
ordering via their own app
31%of consumers receptive to
ordering via virtual assistant if available (e.g., Amazon Alexa)
12%of operators offer
this option
Operators Not Keeping Up With Consumer Demand
22
© 2019 National Restaurant Association and Technomic, Inc.
Reasons for Not Investing in Technology
23
Not a priority
High costs
Would have to adjust operations
Not enough buy-in from customers
© 2019 National Restaurant Association and Technomic, Inc.
Technology Challenges
24
14%of operators have
experienced challenges
“Teaching employees how to use it.”
“Getting familiar with the technology and training staff in its use.”
“Cost and getting staff and customers to buy in.”
© 2019 National Restaurant Association and Technomic, Inc.
Operators’ Tech Perceptions
Own mobile app for ordering/payment
Inventory management software linked to POS
Business analytics software
Own website for off-premise orders
34%
37%
38%Percent of operators who
plan to offer
34%
Planned Investments Focus on Fundamentals
25
© 2019 National Restaurant Association and Technomic, Inc.
Operators’ Tech Perceptions
Percent of operators who offer __ say it has a large positive
impact on their business
Location intelligence tech
Geofencing tech
Voice ordering through a virtual assistant
50% 45%
44%
Large Gaps Between Impactful Technology and Availability
26
16%20%
12%
Percent of operators who currently offer
Consumers’ Technology Priorities
27© 2019 National Restaurant Association and Technomic, Inc.
© 2019 National Restaurant Association and Technomic, Inc.
Consumers Seek More Advanced App/Website Features…
28
62%
60%
59%
58%
55%
Alerts when food leaves the restaurant
Alerts when food is near my home
Track my order
Track delivery driver
Order ahead of time
© 2019 National Restaurant Association and Technomic, Inc.
Percent Interested in Ordering Via Text Message
Overall
42%
18-34
51%
…And Are Interested in Using Emerging Ordering Options
Overall
27%
18-34
41%
Percent Interested in Ordering Via Wearable Tech
29
© 2019 National Restaurant Association and Technomic, Inc.
Consumers Want More Drive-Thru Technology
30
70%
49%
43%
43%
41%
38%
A screen that shows your order to checkfor accuracy
Ability to order/pay ahead
Accept mobile payment options
Geolocation technology
Touch-screen ordering
LED menu boards
© 2019 National Restaurant Association and Technomic, Inc.
Consumers Receptive to Emerging Delivery Approaches
31
Likelihood of Consumers Using if Available
Autonomous delivery
41%Food cooked
while en route
36%Vehicles with built-in heating trays to keep
food warm
69%
Key Takeaways
32© 2019 National Restaurant Association and Technomic, Inc.
© 2019 National Restaurant Association and Technomic, Inc.
Key Takeaways
Off-premise now accounts for a majority of restaurant occasions - and will continue to grow
New technology is a critical enabler of growing off-premise sales
Operators must adapt to meet consumer demand
33
1
2
3
© 2019 National Restaurant Association and Technomic, Inc.
Questions?
34
Hudson RiehleSenior VP, National Restaurant Association
Melissa WilsonPrincipal, Technomic