Restaurants can be a light in the darkness
Familiar comforts will help consumers unwind when returning to their favorite establishments. For many, dining out will provide a well-needed boost as things move toward a state of normalcy. When asked “Which are you most looking forward to regarding the emotional benefit you get from eating at restaurants?”, the top response was “Relaxation” (41%).
There is an opportunity for restaurants to re-establish themselves in socializing and celebratory occasions. Seen as a great place to socialize & celebrate, restaurants was ranked as the top channel that people are missing.
Meal bundling is key driver of chip incidence
Combos are not only desirable to consumers for monetary value, but also convenience. Most people are driven by convenience. If combo meals are displayed first and it took more work to get to individual menu items, it is more likely that people just order the combo. They’re particularly appealing to millennials; 64% of millennials responded that they often order combo meals at lunch.
In studies, we’ve seen single-priced combos, which are pre-built menu items with a single price, yield +8% chip incidence vs. add-on pricing, which asks guests to build up the combo themselves.
Online ordering is expected to grow by $31B by 2022
Investment in ordering and delivery platforms and partnerships is essential to remaining relevant. Americans are dining at restaurants less and ordering delivery and pickup significantly more in 2019 vs. in 2016. 43% of consumers responded they “ordered delivery or pickup directly from a restaurant online or through an app” in 2019 vs. 22% in 2016. The percentage of customers ordering via third-party delivery companies has grown exponentially and across generations in the last three years, demonstrating the appeal of the ordering platforms.
More than 4 in 10 third-party delivery service users are habitual, ordering through an app at least once a week. This presents a valuable opportunity for restaurants to tap into these dedicated customers through partnerships with third-party delivery companies.