The coronavirus pandemic turned the restaurant industry on its head. Restaurants were shuttered, unable to allow diners into their establishment to enjoy a meal. Take-out and delivery became a lifeline for restaurants across the country - and the rest of the world.
Restaurant delivery services and take-out orders skyrocketed during the pandemic.
Although vaccination levels are on the rise and restrictions are starting to ease, there seems to be no sign of digital sales slowing in the restaurant industry.
Digital Sales are Still Going Strong
While restrictions are easing and things are slowly heading back to normal, restaurant digital sales are still going strong.
People continue to order online, pick-up orders to-go or take advantage of delivery services.
Between the beginning of February and the end of March, restaurant online sales increased by 3%. Individual restaurant chains saw a surge in their online ordering and drive-thru options.
- Chipotle Mexican Grill saw its digital sales grow by 133.9% year over year in the first quarter. And half of those sales came from their drive-thrus.
- Delivery sales at Firehouse Subs doubled during the pandemic, and sales are still going strong.
Some may argue that only a small portion of the population is fully vaccinated, so they may be fearful of dining in restaurants. But survey data suggests otherwise.
A joint survey of 1,982 consumers from Paytronix and PYMNTS found that 92% of fully vaccinated consumers still plan to use online ordering as often as they did during the pandemic. The remaining 8% said they would go back to indoor dining like they did before the pandemic.
Another report projects that digital sales will account for 54% of quick-service and limited-service businesses by 2025.
4 Reasons Online Ordering Will Remain Important
Although many restaurant customers will return to in-house dining, a large percentage will still order online and use pick-up or restaurant food delivery services. Even before the pandemic, customer behavior was starting to change. Third-party delivery services saw sales increasing year after year.
The pandemic made delivery and take-out the new norm. And online ordering will continue to be a driver of restaurant sales well into the future.
Here's why:
1. It's Convenient
Fear isn't the only thing driving digital sales in the restaurant industry. Online ordering, pick-ups and deliveries are convenient.
Sometimes, customers just don't want to sit down and dine in a restaurant, but they still want restaurant food. Online ordering platforms and deliveries give customers the option of enjoying food from their favorite restaurant without having to plan a night out.
Convenience will always be a driving factor in consumer behavior. If you make it easy for consumers to grab dinner from your restaurant on the way home from work, they'll happily become repeat customers.
2. People Want More Options
We live in a digital world. Consumers have the option of buying items in stores or online. They can view and buy virtually anything online, from new earbuds to new cars. It only makes sense that restaurants would hop on the digital bandwagon.
People simply want to have more options when it comes to dining. They want the ability to sit down and have a meal, but they also want the option of being able to pick up their favorite restaurant food or have it delivered.
Online ordering and in-house dining should work together to bring in more customers and appeal to a larger consumer base. When giving restaurant consumers more options, food sales increase.
3. Some Diners Aren't Ready to Return to Indoor Dining
Even with vaccination rates increasing, many customers are still not ready to return to indoor dining. It may be fear-driven, or maybe they may just prefer the convenience of the digital route.
As long as there are still restaurant customers that don't want to return to indoor dining, online food sales will continue to rise.
Eventually, restaurant customers will likely return to indoor dining and feel more comfortable doing so, but even those who are fully vaccinated are still reluctant to make that move.
4. Consumer Behavior Has Changed
Restaurant digital sales will continue to flourish long after the pandemic because consumer behavior has changed. For more than a year, people have been living in lockdown, unable to do many of the same things they once loved.
A year is quite a long time, and consumers have gotten used to this "new normal." They've gotten used to take-out, delivery and drive-thrus being their only options for restaurant dining.
Online restaurant sales were already going mainstream prior to the pandemic, and that won't be changing after it.
The convenience and ease of restaurant delivery service is something that consumers won't let go of anytime soon.
5. Mobile Drives Consumer Behavior
Restaurants that have made it easy for customers to order through their smartphones have fared well during the pandemic. Our ability to use our smartphones to find anything and now order anything we want anytime, anywhere has altered consumer behavior.
Restaurant customers now expect to be able to see menus, order online and have more options for getting their food. And they expect to do all of this right from their smartphones.
Digital restaurant food sales will continue to rise and remain an important part of the restaurant landscape in a post-pandemic world. Consumers want more options when it comes to restaurant dining, and the convenience of these remote dining options is hard to beat.