Restaurant tech adoption, consumer preferences ambiguous, but opportunities abound
Restaurant delivery mainly driven by quality and price, not convenienceThere’s a big opportunity for operators increasing their participation in and quality of their restaurant delivery programs. Fifty-percent of Millennial consumers prefer call-ahead (or scheduled) delivery and 46 percent of Baby Boomers say that they’re more interested in traditional “in-the-moment” delivery ordering. Nearly three-quarters of those surveyed say that they often order from a single restaurant and 53 percent cite the main reason for that is a limited amount of options. As restaurant operators consider advancing or starting delivery options, owners and managers should note that only 8 percent of consumers prefer third-party delivery and 72 percent want delivery directly from the restaurant, a seemingly-surprising revelation. Food quality (63 percent) and food price (57 percent) are the main factors impacting the decision to order delivery from a particular restaurant. Price is also a factor swaying consumers away from restaurants to select competitive like-selections from grocery stores and convenience stores. 56 percent of consumers rated price as the top reason for selecting ready-to-eat (prepared meals) from grocery and convenience (22 percent) as the secondary reason. Because the quality of food is such an important factor in the decision to order delivery, Kurt Schnaubelt, managing director at AlixPartners says “All the companies today putting investments into the third-party and other delivery programs might want to step back a bit and look at their operations holistically, with an eye on packaging and available technologies as well as delivery,” He further notes that operators should pay attention to how well the food travels and to maintain control over the entire process.