Nicholas Upton
A review of a few recent consumer surveys shows that no matter how far the digital transformation reaches into the restaurant industry, consumers want more.
In consumer survey highlights from data and analytics companies and vendors including Tillster, Deloitte, Pymnts and HungerRush, respondents reveal they have gotten used to customer-facing technology and are looking for continued evolution. Namely, customers want tech that results in even less friction.
That was the chief takeaway from a Deloitte consumer survey: Consumers do not want to deal with clunky tech or a bad digital ordering experience. Shocker, right? In all, 40 percent of consumers said they preferred to order direct from a restaurant’s website; just 13 percent preferred third-party platforms. But that 13 percent is actually up from the last survey done by Deloitte.
Tillster likewise affirmed that diners would rather order direct from the restaurant, as 71 percent of respondents to the technology provider’s survey said first-party ordering was their preference. That means almost 30 percent, however, preferred third-party apps. Tillster asked why, and most respondents said their third-party app was more convenient (55 percent) and 41 percent said they were just used to it.
When asked why they liked to order direct, most respondents (53 percent) said it was cheaper and 40 percent said it was more convenient. Of course, both parties can’t be right about convenience, but between the lines there’s probably a healthy dose of, “It’s already on my phone,” and, “I know how to do it.”
There is nothing as frictionless as doing the same dang thing, right?
If it’s easy, they will order
What involves even less friction than that? Delivery! Not long ago, the reason for ordering delivery was a consumer didn’t want to cook. Now, consumers don’t even want the friction of carryout. Tillster respondents said overwhelmingly—75 percent—that they ordered online from a quick-service restaurant because they just didn’t feel like going through the drive-thru.
But consumers do want better technology if it makes the experience better. In the Tillster survey, respondents noted they wanted better order tracking, apps that remember their favorite orders and a faster checkout process.
In a consumer survey from Pymnts, 70 percent of respondents said they would love things like AI voice and personalized menus, and they would use restaurant-specific apps if it meant they didn’t have to deal with poor service and slow drive-thru times. Seemingly, we’ve collectively progressed beyond the, “Oh it’s so nice to be eating out again,” to “What is taking so long?”
It’s the same for full-service restaurants. In a HungerRush survey, 80 percent of respondents told the cloud software provider they wanted technology at the table to order and pay. They’re happy to be out, but do not want to wrestle for the attention of the one server who is already stretched thin across the entire restaurant like a thin pat of butter scraped over too much bread.
And before they even decide to dine, consumers want to see the food, read the reviews and decide who’s going to get their business. In all, 85 percent say it’s important to be able to easily find reviews and information online about restaurants. That means investing in the digital footprint beyond the app so potential diners can explore from the couch. That might be how Yelp is extracting record revenue from advertisers and locations.
But don’t make me pay too much
Of course, consumers want this all to be cheaper, too. In the Deloitte survey, respondents said they want less-expensive options if they are going to eat out more frequently. In the survey, 37 percent of dine-in guests and 40 percent of takeout guests noted they want less expensive options on top of promotions and discounts.
Only 19 percent of dine-in and 15 percent of takeout consumers are looking for higher-quality products. Or so they say.
In the same survey, 60 percent of consumers said they are unlikely to accept lesser quality takeout food.
The lesson is iterated again: Everything should be the same quality, but cheaper. And if those fries aren’t crispy, you know someone is going to complain. What a nice reminder of consumer logic.
One obvious lesson in this vein comes from the case of the passthrough fee of 99 cents from Toast. The point of sale and technology provider started presenting customers with a nearly hidden fee to “help fund product investments.”
Isn’t that exactly what customers love to do? Help the publicly traded middleman between them and dinner turn a profit? One X commentator (Twitter for the non-updaters) noted that is “a real vibe from a $12 billion co!”, while another questioned if Toast is “the second coming of Ticketmaster?” Ouch.
Operators were perhaps madder that they didn’t have any say in hiding or absorbing the fee. Toast CEO Chris Comparato apologized and the fee was removed within days of launch. (He also hinted that restaurant fees were going to go up.)
While boneheaded, the move was quite a reminder that the customer does not want to see another fee, nor do they care how much all this technology, or the digital presence itself costs. Especially on top of other high prices they’re already paying.
As more instances of these dumb fees pop up, they in turn also create psychological friction for diners. That can prove dangerous as many brands are staring down decreases in traffic. Your customers still want to dine out, order delivery or swing by to grab a carryout order, and all the surveys showed they want to do it more—but they’re not immune to cost.
As restaurant operators continue to evolve their technology, keep friction top of mind. Maybe we’ve finally settled into the “new normal” we’ve all been talking about for the last three years, but consumers are making it clear that they don’t want to deal with any jarring novelties unless it makes their everyday experience easier to manage.
Nicholas Upton has reported on retail and restaurant technology for more than a decade. His Tech Stack column aims to distill complex ideas into actionable insights. Send interesting tech topics to [email protected].