Challenges and Trends in Restaurant Technology
Guests still lag in widely using restaurant technology, as revealed by surveys from the Food Marketing Institute and AlixPartners. Despite the importance placed on technological features like digital ordering, many restaurants are yet to implement them fully. Generation Z's spending habits and preferences, particularly towards pricing and technology, are shaping the restaurant industry. The rise of food delivery services, with the potential for drone deliveries, signifies a significant shift in the restaurant business landscape.
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Guests Still Dont Widely Use Restaurant Technology According to an October 2017 survey from the Food Marketing Institute (FMI), 23% of all adult respondents said they almost always or frequently use a desktop/laptop computer, smartphone or tablet to decide which restaurant to visit for dinner. Unsurprisingly, young adults, or those 19 27 and 28 37, had the largest percentages of using these devices almost always or frequently, at 35% and 38%, respectively. Of those 54 71 responding to the survey, 37% said they never use these devices. AlixPartners surveys from Q1 2017 and Q1 2018 (as per the table on page 1 of the Profiler) indicate the various technologies available at restaurants were less likely to influence diners decisions to dine at and order delivery from a restaurant.
Guests Cant Use Technology Restauranteurs Haven t Installed A February 2018 survey of US Internet users found they considered many restaurant features/technologies to be very important, although many restaurants hadn t yet implemented those technologies. Ease of ordering and payment was the most important technology, at 71%, but it is expected to increase in importance another 10 percentage points to 81% by 2020. Being able to order digitally in advance and Wi-Fi availability will increase in importance the most between February 2018 and February 2020, at 55% and 59%, respectively.
Generation Zers Arent Big Spenders at Restaurants, Yet, But Will Be Since 47% of the 47 million members of Generation Z are students (primarily those 18 21), it s not surprising that 61% of them say they usually choose restaurants with lower prices and they spend the least outside the home for prepared food, or $102.80/month. When selecting technologies to attract customers, restaurants must remember that Gen Zers are the first totally digital- native generation and they are the largest percentage of smartphone ownership. Generation Z is also the most racially and ethnically diverse generation, as 22% of those who dine at restaurants are Latinx Americans compared to 16% of all US diners and 54% are Caucasian Americans compared to 64% of all US diners.
Delivery of Restaurant Meals Is About to Become a Much Bigger Business According to a 2017 Cowen study, 52% of Americans used an on-demand food delivery app during that year, but delivery will account for 30% of the restaurant industry s sales increase through 2022. That 12% increase from $43 billion to $76 billion may usher in the age of drone deliveries of restaurant meals, although drone technology as a delivery device is still somewhat of a sci-fi dream. Uber is seriously considering adding restaurant-meal drone delivery to its service portfolio. Although drone deliveries in urban communities could pose a number of logistical problems, it may become more viable in suburban neighborhoods.
Restaurant Tech Can Be an Important Asset Some restaurants have been slow to embrace tabletop technology, as they consider it a distraction and could possibly replace staff, although many guests benefit from streamlined ordering and, often, have more interaction with staff, not less. Chick-Fil-A experienced an increase in customer satisfaction and a 500% increase in sales when adding Omnivore s technology to three of its Texas restaurants as a test. Another major benefit of tabletop technology for restaurants is the opportunity for immediate feedback in advance of when guests post on social media, which is often some hours later and, therefore, results in fewer guests postings.
Advertising Strategies Suggest local, independent restauranteurs install more technology in their establishments, train their staff to explain its use and benefits to guests and learn how to use as an aid to their jobs and then promote their tech tools as a competitive advantage and differentiator. Local restaurants may want to test a college- student discount for those who eat there more than once during a month not only to attract more Generation Zers today, but also to build brand loyalty, so they will visit the restaurants regularly as they grow older. Local restaurants won t probably be the first to offer drone delivery of restaurant meals, but to remain competitive, they must certainly offer online ordering and delivery, either with their personnel or via one of the many food-delivery services.
New Media Strategies Restaurants can offer their guests a coupon for their next visits when they post feedback on social media and/or local search sites before they leave the restaurant. Because the largest TV audiences are older adults, offer a senior discount as a promotion during a TV campaign for anyone 50+ who posts a review on local search sites, such as Yelp, Foursquare, etc. For restaurants still wrestling with the implementation of tabletop technology, ask guests to participate in an online survey of what technologies they would like to see in the restaurant. Enter all participants in a drawing for a free, multi-course meal or other appropriate prize.
