The restaurant industry took a significant hit as reduced capacity and total closure mandates shifted the way they were able to serve patrons. Larger chain restaurants have fared better than smaller restaurants, as expected. 85% could shutter permanently by the end of 2020 without economic aid.
Restaurants have suffered from reduced capacity and total closure mandates. Online ordering systems have become essential tools for businesses. G2’s Restaurant Delivery/Takeout software category saw over 300% increased traffic between March and May 2020.
The COVID-19 pandemic has forced restaurants to reassess their online ordering infrastructure. By 2021, nearly 50 million people will be using food delivery apps. 66% of adults ordered delivery or takeout for dinner in the last week of October 2020. Businesses shouldn’t see this as an opportunity to cut corners in staffing; rather, they need to invest in staff that can meet the increased demand for delivery and takeout. Delivery apps can be a double-edged sword for smaller businesses, with some taking as much as 30% of commission on each order.
Cloud Kitchens are entirely off-premises. G2 recently launched the Cloud Kitchen Management category for cloud kitchen management. The cloud kitchen category will be part of the COVID-19 restaurant tech trends for the first half of 2019.
By 2023, online food delivery revenue is projected to reach $28 billion. Cloud kitchens are in a great position to capitalize on this rapidly growing revenue segment. Traditional restaurants focus largely on capturing dine-in clientele.
As more cloud kitchens emerge, that increased demand will compel tech companies to answer this problem with a singular platform to optimize cloud kitchen operations. UberEats, DoorDash, and Postmates all spurring a ton of growth in these virtual restaurants.
Restaurants need a strong restaurant marketing program. Restaurants only benefit from digging into their customer preferences. There will always be customers that support the local businesses of their own volition, but restaurants should go that extra mile to understand their base.
Restaurants have access to a rich trove of consumer data to help tailor the appropriate marketing and loyalty programs. Equipped with data, restaurants can market deals to the right customers at the right time.
Restaurants should be wary of trying to create a relatable social identity. Building a rewards program, whatever that may look like, is one step in attracting and retaining customers. Smart marketing campaigns to announce food specials and new menu items will go a long way.
Contactless technology will be here to stay even after the pandemic is over. Digital menus, touchless payment options, and digital receipts all go a long way in reducing paper waste and unnecessary contact with customers. Recent data from Morning Consult shows only 38% of U.S. adults feel comfortable going out to eat. Until a vaccine arrives for COVID-19, many consumers are rightfully avoiding any environment where they could be in contact with others for extended periods of time. For digital menus, these can be as simple as a website listing or as detailed as a custom app. For cashless payment systems, speed up the process for closing tabs and help simplify the accounting process.
Food safety should be of the utmost concern for all businesses that handle food in any capacity. A recent poll found that 16% of respondents would purchase another brand and never purchase the recalled brand again. The challenge, of course, is that many restaurant workers lack paid sick leave to ensure these types of food safety incidents can be minimized. COVID-19 has highlighted the ongoing dilemma that plagues the hospitality industry, which often forces low-paid employees to choose between a paycheck and being proactive with their health. The company has taken extensive measures to build a food safety system that significantly reduces their chances of similar incidents in the future. It was recently ranked as the #1 chain among QSRs for food safety measures.
Auto310
2021 Trends in Restaurant Technology