As we see the light at the end of the pandemic tunnel, restaurant owners are clamoring for guests to make up for lost time and revenue. While things may be getting back to normal, our consumer survey results show that habits and expectations have changed, so restaurants will need to be adaptable as we transition back to life as usual.
We recently surveyed our members and received over 1,700 responses, to uncover their expected dining activity during this spring/summer and what they expect from restaurants. Below, you can read about what they have to say and see how consumer sentiment compares to a similar survey we ran near the end of 2020.
Your guests are hungry to dine out
Let’s start off with the best news: 83% of our survey respondents said they would be dining out regularly. That is up from 75% from our previous survey where respondents who said they would “never or rarely” be dining out positively fell from 7% to 2%. The biggest indicator of changing dining frequency is that 43% of respondents said they would be dining out more frequently than in 2019 to release their pent-up demand. And while only 14% of respondents said they would be dining out less (compared to 48% in our last survey), their main reasoning was from fear of catching/spreading the virus.
What it means for restaurant owners
Clearly, people are ready to dine out again now, more than ever, as warm weather hits us, vaccinations become widespread, and indoor restlessness hits an all-time high. Restaurant operators will need to pay attention to what their guests are saying and better understand how their preferences have changed to attract their business.
Safety first…still
Although consumers are a bit more relaxed about COVID compared to last year, 58% of respondents said that it’s still very important for restaurants to practice strict COVID-19 safety precautions, with only 16% saying it was not important.
We also asked our members which restaurant safety precautions are most important to them when dining out. The answers largely followed the same pattern as our last survey. Consumers expect frequent sanitation of surfaces, socially distanced tables, restaurant staff wearing PPE, and availability of outdoor seating. For restaurants that take the proper precautions, 82% of respondents say they feel comfortable eating in their dining rooms, with only a fraction still feeling very uncomfortable.
What it means for restaurant owners
Restaurant owners will have to treat safety precautions as a prerequisite for the foreseeable future, as this will be a baseline needed to attract hungry crowds. While the basics should work here as virus fears continue to subside with positive news, restaurants should still consider going above and beyond with touchless menus and bathrooms, since the pandemic has turned many people into semi-germaphobes.
What sounds good tonight?
Although many restaurants unfortunately did not survive the pandemic, consumers still have plenty of choices of where to eat. With safety being the foundation for their dining choice, there are other factors that influence the decision.
We asked our survey-takers what most influences their dining out decision. In our previous 2020 survey, the overwhelming influence was the restaurant that has the highest degree of cleanliness. While that was still a popular answer in this survey, it was not the top selection. The most influential factor was if it’s a favorite restaurant of theirs. Furthermore, the top write-in answer from respondents who chose “other” was that it was a restaurant that had great food and service, joining “favorite restaurant” and “high degree of cleanliness” at the peak was restaurants at which they can earn rewards.
This is not surprising, as consumers increasingly expect rewards programs for many types of purchases, dining being no different. In fact, nearly half of respondents said that earning rewards at a restaurant is even more important now than pre-pandemic, with nearly the other half saying it was just as important, and only 5% saying it was less important.
What it means for restaurant owners
While this data is helpful to steer restaurants in the right direction, every community is different. Owners need to listen to their guests and find out what will keep them coming back. Over the last year, experiences have been lacking for consumers, so most of them are just looking for a restaurant with good food, atmosphere, and service that they feel safe dining at. And clearly, restaurants that offer some type of incentive to visit are most likely to gain loyal, repeat customers. That means they should find out what is important to their guests and potential patrons or consider partnering with a company like Rewards Network that has loyalty programs already set up with more than 20 of the world’s biggest loyalty brands.
Takeout and delivery are here to stay
Takeout and delivery have been a lifeline for many restaurants as they adapted to the pandemic. Although it may not be as profitable for most establishments, it has been a critical revenue source to keep the lights on. Many restaurants have even gone above and beyond to launch their own delivery service to squeeze more money out of the bottom line.
We asked our survey-takers how often they plan to order takeout/delivery compared to before the pandemic. While nearly half said the same as usual, 37% said they would be ordering out even more than before COVID hit.
So, what about the 13% that said they would be ordering takeout/delivery less? That isn’t an insignificant number, but the good news is that two-thirds of these respondents said the reason they would be ordering-in less often is because they plan to dine out more.
What it means for restaurant owners
Consumers seem eager to dine out more and order out more, perhaps speaking to their pent-up demand for good eats that go beyond their personal culinary skills they have tolerated for the past year.
Restaurant operators will still want to consider offering multiple ways for consumers to experience their establishments: dine-in, takeout, and delivery. Since dine-in customers are usually more valuable to a restaurant, they can use takeout/delivery to gain new customers and entice them to dine in.
Restaurant operators should also continue to find efficiencies in their delivery offerings by considering starting their own in-house delivery service, or by partnering with a third-party that helps them operate that side of the business profitably. Rewards Network has a takeout/delivery program that restaurants should take a look at, where they are charged a 10% flat fee plus processing for online orders through loyalty dining sites and select search engine results.
Incentivize your guests
We asked how important it is for survey-takers to receive reward incentives for dining out compared to earlier in the pandemic. 47% said it was even more important compared to before, with nearly half saying it carried the same importance as before. Looking at a different consumer survey we conducted in May, we found respondents overwhelmingly said that receiving incentives was more important or just as important as before the pandemic. When correlating these responses between surveys, it seems that being incentivized to dine is showing increasing importance among consumers as the pandemic goes on, with little signs of dissipating.
What it means for restaurants
Earning rewards for dining or takeout/delivery experiences is becoming even more important to consumers. Restaurants should make sure they are offering some kind of loyalty program or partnering with a third-party, especially as the grip on wallets has tightened. Be sure to continue marketing to your guests to remind them of the awards they can receive by revisiting your establishment or the special promotions you are offering. Encourage them to review your restaurant post-purchase on the platform of their choice, as this will not only grow their affinity with your restaurant, but also encourage visits from others.
Conclusion
Restaurants are not completely out of the woods yet, especially with additional challenges like staff hiring, but consumers are looking to come back to restaurants with a vengeance. Restaurant owners will largely want to do more of the same: offer great food, exceptional service, loyalty incentives, purchase options, and a safe environment expected by today’s restaurant-goer. Those that do it best and continue to adapt to the inevitably changing landscape will rise above the rest today and in the future.
Looking to boost your dine-in traffic and takeout/delivery orders? Let us know and we can tell you exactly how we can help you do it.
We conducted this survey of Rewards Network partner members for approximately one week in May of 2021. All of the information contained in this article summarizing the survey results is provided for informational purposes only and should not be construed as providing tax, legal, accounting, career, or other professional advice.
