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


Consumers Using All Channels More Than a Year Ago

3

39%Drive-thru

34%Delivery

29%Takeout

44%18- to 34-year-olds


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+


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.


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+


Important to Understand Path to Purchase

Type of cuisine

Time until ready

Location

Delivery fee

Total cost

Specificrestaurant

7

The Technology Connection



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


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


37%use restaurant apps

because they like the loyalty program

26%use third-party apps because they like the loyalty program



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



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


66%of restaurant

operators offer third-party delivery

57%say this is more important than it was two years ago



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%


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


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


24%of restaurant

operators offer curbside pickup

67%say this is more important than it was two years ago


TechnologyDisconnect



29%of operators admit they are lagging the industry in technology



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


Reasons for Not Investing in Technology

23

Not a priority

High costs

Would have to adjust operations

Not enough buy-in from customers


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.”


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


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



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


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


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


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



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


Questions?

34

Hudson RiehleSenior VP, National Restaurant Association

[email protected]

Melissa WilsonPrincipal, Technomic

[email protected]

mailto:[email protected]

mailto:[email protected]

harnessing technology to drive off-premise sales · harnessing technology to drive off-premise...

Documents