In our last blog, we explored some of the dilemmas facing restaurant owners when it comes to prioritising investments in technology, particularly with all the hype surrounding AI.
We suggested that, given the financial constraints many businesses in the sector face and the risks of jumping straight into the deep end with cutting-edge tech, restaurant owners might be better served adopting a strategy of getting ‘AI ready’ in the short term. This would allow them to invest in building foundations that have a broader (and more easily measurable) impact on the whole business.
One such impact that restaurateurs are eager to grasp is better engagement with customers. In fact, as we revealed in our last blog, this is the current number one priority for tech investments among restaurant owners. It makes perfect sense. At a time when the eat-out sector is seeing margins squeezed at both ends by soaring costs and consumers tightening their belts, doing everything in your power to win over and lock in loyalty from diners is crucial.
But what kind of technologies can restaurant owners invest in to drive up customer engagement? Or perhaps a better question – what technologies do diners most want to see restaurants invest in?
Mobile is number one for diners
The answer to this is a reminder that, despite all the current hype around AI, one technology has been dominating our lives to a much greater extent for much longer – mobile. And while mobile apps (particularly delivery aggregators like Just Eat, Deliveroo and Uber Eats) have been an unstoppable force in the takeout sector for a number of years now, we’re starting to see those habits transfer to diners’ preferences when they eat out.
Looking across the food service sector as a whole, 60% of all orders are now placed via a mobile app. But the really telling stats are those that give us an insight into mobile’s rise in the QSR and full-service sectors. In one recent survey, 45% of people picked mobile as their preferred way to place an order in QSRs, beating ordering in person at the counter (40%) into second. Intriguingly, using self-ordering kiosks got just 19% of the vote.
In the full service sector, 63% of diners now say they are willing to place an order via an app on their phone, whether that’s sat in the restaurant or ordering ahead before they get there.
But it would be wrong to suggest that apps are the be-all and end-all of the mobile experience right across the restaurant sector, but especially in dine-in establishments. 62% of diners prefer to pay contactless in restaurants these days, including using mobile wallets like Apple Pay and Google Pay.
But perhaps the biggest people-pleaser when it comes to using a smartphone to pay is how it opens the door to not having to sit and wait for the bill. In fact, with QR code on-table systems, diners don’t have to wait to place their order, either. They scan the code to access the menu, place their order in their own time, and make payment when they want, too. 70% of restaurants use QR codes in one form or another. Many are exploring innovative ways to use them to enhance the overall diner experience, like launching video games for kids (big and small!) to entertain them as they wait for their meal.
Finally, coming back to the role of apps, embracing diners’ preference for mobile gives restaurateurs a convenient way to administer loyalty schemes. In the current testing economic environment, in-app loyalty programs give restaurants a welcome revenue boost, with members spending up to 18% more per order on average. And interestingly, it is younger diners who are most likely to sign up for a restaurant loyalty scheme, with 52% of Gen Zers saying they’d like to join one.