Oracle Going Mobile points to opportunities, including improved service, loyalty, cost reduction
A new report by Oracle Food and Beverage, Going Mobile: A Benchmark of Mobility Maturity in the Restaurant Industry, suggests that foodservice executives see challenges in keeping up with mobile technology. The report is based on a survey of 268 food and professionals, of which 71 percent were director level or above. Forty-five percent of these came from full-service restaurants. Of all executives surveyed, 62 percent were doubtful they could keep up with mobile technology, with 43 percent of those agreeing or strongly agreeing they were doubtful.
A total of 59 percent of respondents feared they would face disruption from their competitors who were better enabled for mobility.
This mobile report from Oracle parallels the National Restaurant Association’s 2019 State of Industry Report, which indicates 80 percent of restaurant operators see tech as an advantage. Both reports point to the importance of technology, particularly mobile technology, in the restaurant environment when it comes to staying competitive and gaining market share. As much as the fast-paced evolution of mobile technology is making restaurateurs feel anxious, it is also recognized as bringing new opportunities.
Guest-facing technology improves service, loyalty: Going Mobile
Among the benefits of mobile technology, according to the Oracle survey are those propelled by guest-facing technologies. As restaurants struggle with the challenges of labor, 84 percent foodservice executives agree that mobile technology helps reduce labor, with 60 percent strongly agreeing or agreeing with this statement. Of those surveyed, 86 percent agree that their branded mobile apps help improve speed of service. And 93 percent agree that their guest-facing mobile apps increase customer loyalty and promote repeat business. An impressive 77 percent of those responding as such strongly agree or agree with this conclusion.
Cost reduction is a big driver of future investment in mobile technology. In Oracle’s Going Mobile, a scale of 1 to 6 was used to gauge this and other investment rationale. Foodservice executives believe mobile technology would save them money. In fact, the rationale of cost reduction as a driver of future mobile investment indexed 5.05 out of 6. Repeat business as a rationale for future investment scored 4.95. Furthermore, those believing future investment would improve guest service and increase loyalty scored brand loyalty rationale for investment as 4.93 out of 6.
Oracle Going Mobile also found that 95 percent of respondents consider investments in mobile technology as improving the guest experience and loyalty. Another 89 percent see big opportunities in increasing ticket averages through opportunities in cross-selling and upselling.
“The rise of mobile ordering and on-demand food delivery services are completely changing the restaurant and guest experience,” said Simon de Montfort Walker, senior vice president and general manager for Oracle Food and Beverage, in the report’s announcement. “In order to remain relevant to a rapidly evolving audience, restaurants must act quickly to modernize their mobile strategy and offerings.”
Additionally, 82 percent of foodservice executives indicated they agree that third-party delivery services will help grow their business, but that these services also risk eating away at their brand identity. Customers can become overly reliant on third-party services.
For additional report insights, navigate to https://go.oracle.com/LP=81239?elqCampaignId=197805
Photo credit: Brooke Cagle (featured), Rohan G (inline), Oracle Food and Beverage (infographic)
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