Harnessing Technology to Drive Off-Premise Sales · Harnessing Technology to Drive Off-Premise...

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

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© 2019 National Restaurant Association and Technomic, Inc.

Questions?

34

Hudson RiehleSenior VP, National Restaurant Association

HRiehle@restaurant.org

Melissa WilsonPrincipal, Technomic

mwilson@technomic.com