The restaurant owner's toolbox for responding to new consumer habits
The restaurant sector in France has never had the wind in its sails so much: the creation of new restaurant businesses grew by more than 51% in the first quarter of 2021 compared with 2020, according to figures from BPI France.
Despite an uncertain health situation and controversial legislative measures (health pass), managers and operators are continuing to invest time and money in the restaurant sector.
However, in addition to traditional market research to make sure they get off on the right foot, catering establishments now need to incorporate a number of elements and tools into their business arsenal.In addition to traditional market research to ensure they get off on the right foot, catering establishments now need to incorporate a number of elements and tools into their arsenal to adapt to the new expectations and uses of their customers (some of which emerged before the start of the health crisis, but which have been reinforced by it).
From contactless payments to click and collect and delivery, here's a quick rundown of the essentials you need to include in your restaurant toolbox to deal with every situation.
But first, let's take a look at the new consumer habits of our fellow citizens and their impact on their eating habits and choices.
The new consumer habits of the French in a post-COVID world
A study by Alixpartners published in June 2021 reveals that 50% of French people feel that the pandemic has had a permanent impact on their consumption habits.
Is video streaming a boon for the catering industry?
The various confinements and closures of cinemas last year have prompted the French to spend more time watching films and series online1. While this may seem problematic for restaurateurs (fewer cinema-goers = fewer restaurant-goers?), it may also allow them to capitalise on this new trend with deliveries and takeaways.
According to the study, 30% of those surveyed said they would like to see more films at home in the coming months, making them all the more likely to use meal delivery services.
Organic and local: health is once again a priority
Consumers are now looking for short distribution channels, local products and products that respect the environment. According to the firm's study, over 76% of French people say that the health crisis has heightened their environmental concerns, and 38% of them have changed their purchases.
For restaurateurs, eating healthy is a differentiator that can clearly attract new customers. Seasonal or vegetarian menus, promotion of local products, detailed information from waiters on the origin of products, etc.: establishments that commit to healthy food will meet their targets.
Combating food waste: a growing trend
One of the key trends in the catering sector in 2021, the fight against food waste echoes the growing awareness among the French of the need to be more environmentally-friendly.
Using leftover ingredients, composting non-reusable leftovers, doggy bags, investing in more energy-efficient equipment, reselling unsold food to private individuals: the fight against food waste is multifaceted and increasingly scrutinised by consumers in France.
What's more, a report by the World Resources Institute2 has shown that every euro invested in anti-waste initiatives by restaurants saves an average of €7: an initiative that's not only good for the planet, but also profitable!
The restaurant owner's toolbox for coping with new consumer habits
Delivery, a long-term solution
One figure illustrates the importance of home meal delivery: since the outbreak of the health crisis in March 2020, meal delivery has grown by a staggering 50%, with more than 80% of 20-40 year olds ordering meals at least once a week on average3.
This new consumer trend is set to continue: according to Deloitte, meal delivery will grow by 10% a year between now and 20234 in Europe.
Before taking the plunge into home meal delivery, there are a few things you need to consider:
- Reorganising your space: installing delivery zones, dedicated preparation stations, switching to a "dark kitchen" model - think about the layout of your restaurant beforehand to accommodate this new channel.
- Equipment: dedicated tablets, online ordering site, synchronisation of cash register software with delivery platforms - delivery can't be improvised!
- In-house delivery vs. third-party delivery: do you have the resources to manage your own fleet of delivery drivers (vehicle, payroll, logistics)? Have you built up a sufficiently solid customer base for them to call on you? If not, using third-party platforms is an appropriate solution.
- Specific menu: not all your dishes are suitable for delivery - decide which ones are best suited to transport.
If you decide to outsource your delivery service to third-party platforms, synchronising your checkout software with delivery platforms such as Ubereats or Deliveroo has the advantage of centralising all your orders on a single screen (no more having to use tablets to manage orders separately), allowing dishes to be picked up more quickly.
Bonus tip: having a presence on delivery platforms is only the first step, the second being to stand out from the competition! Order acceptance times, preparation times, promotions, customer reviews: you need to optimise a number of factors to maximise your ranking on delivery platforms.
Takeaway sales: an additional channel at lower cost
Here too, the results are clear: a study by the NPD Group revealed that takeaway sales doubled their market share in 2020, representing 30% of total restaurant sales compared with 15% in 20195.
The sale of takeaway meals, or click and collect, is a sales channel that was neglected or little exploited before the outbreak of the health crisis.
To cope with this new consumer trend, restaurateurs need to equip themselves with tools that enable them to take orders quickly and without friction, in the same way as ordering from a third-party delivery platform.
Whether it's menu display, preparation time, flexible collection times or personalised ordering, your online ordering site needs to be able to meet the needs of your customers.
A tool like Lightspeed Order Anywhere combines all of the above, as well as making it easy to take orders via a simple link or QR code (no need to download a cumbersome application onto your phone). It also has the advantage of centralising all orders via a single platform in your checkout software, again enabling orders to be processed quickly, with no additional commission charges.
In short, make sure you set up a mobile, functional and fast online ordering site connected in real time to your checkout software so you can respond quickly to new orders.
Contactless payments popular
Contactless payments are part of a global context of contactless catering: mobile or online order-taking, takeaway sales, deliveries, digital order kiosks, and so on.
It's hardly surprising that the French are increasingly in favour of contactless payments.A survey carried out by Lightspeed in January 2021 revealed that more than 20% of them considered contactless payments to be one of the conditions necessary for restaurants to reopen completely. As well as limiting the need for physical contact, contactless payments have the advantage of speeding up the process of taking an order or settling the bill.
What's more, a report by the Observatoire de la sécurité des moyens de paiement (Payment Security Observatory) published in July 2021 states that contactless payments now account for half of all card payments, compared with a third before the health crisis. This trend is set to grow significantly in the coming years, especially as the contactless payment limit has been raised from €30 to €50!
Restaurant operators need to equip themselves with compatible payment terminals capable of handling mobile payments as well as traditional credit or debit cards: for example, there are tools that can accept a whole range of payments at competitive rates, bypassing suppliers and intermediary payments. In many cases, they can also eliminate the need to manually enter amounts when paying by connecting the payment terminal to the till software.
Mobile table-top order-taking and self-service order terminals: personalised, fast service
A tool that is set to develop further in the coming years is the self-service ordering terminal, as its installation can increase average sales by more than 6% in the first year of use6.
Consumers want to order quickly and efficiently: touch-sensitive ordering kiosks allow customers to reduce their waiting time by not having to wait for a waiter to come and take their order, while reducing physical contact with your staff (remember to use antimicrobial film to reassure your customers about the risk of contamination).
Mobile order-taking at the table is in the same vein: customers now wait to browse your menu, order and pay via a QR code from the table using their phone.
The advantage of touch-sensitive order terminals and mobile order-taking is that they can be connected to your establishment's cash register software, avoiding ordering errors and increasing the speed with which orders are taken.
Another consumer demand is for personalised menu choices. Touch terminals or QR codes for online ordering should offer a wider combination of menus and dishes: the traditional "starter-main course-drink-dessert" menu should therefore be rethought.
For restaurateurs, the benefits of personalising their menu choices are considerable: additional sales and their impact on the average basket. Restaurant owner Barak, for example, saw his average basket increase by 15% following the installation of a touch-sensitive ordering terminal in his establishment.
A digital reservation book to help your customers make the most of your service
Booking a table in a restaurant is a growing trend: the latest figures for 2021 show that half of French people book a restaurant online, but only 47% of restaurateurs offer an online booking service7.
What's more, the online digital reservation book solution Guestonline reported an increase of more than 10% in the number of overall reservations in June 2021 compared with 2020. The introduction of the health pass does not seem to have had any impact on the number of overall bookings.
What's the main reason for this? With the social distancing measures and the limited number of guests, customers no longer want to take the risk of turning up at the last minute only to be refused entry.
Consumers prefer to book online because it's so easy to use: setting up a digital booking system to meet this new expectation is essential.
Website, social networks, Google My Business page: give your customers plenty of choice when it comes to booking their table!
Several online reservation solutions, for example, enable restaurant owners to limit last-minute cancellations by sending reminders, requiring advance payment or collecting customers' credit card prints. Choose an online booking tool that integrates automatically with your cash register software: this way, bookings automatically open a table in your seating plan, avoiding last-minute duplication.
Essential (or almost essential) tools to stay one step ahead
The health crisis has turned the traditional restaurant business model on its head.
While traditional table service will always be the norm, other channels and tools are being added to the restaurant business: delivery, takeaway sales, mobile order-taking at the table, self-service order kiosks and contactless payments are the new realities of tomorrow.
By adopting them, you can ensure that you meet consumer expectations, which will have an impact on your sales.
Sources:
1) https://www.lefigaro.fr/medias/l-essor-du-streaming-video-impose-une-course-au-gigantisme-20210517
2) https://www.fastcompany.com/90306002/for-every-1-they-invest-in-cutting-food-waste-restaurants-save-7
3) https://www.lefigaro.fr/conso/depuis-un-an-un-francais-sur-deux-estime-avoir-modifie-ses-habitudes-de-facon-permanente-20210601
4) https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/corporate-finance/deloitte-uk-delivering-growth-full-report.pdf
5) https://www.ouest-france.fr/sante/virus/coronavirus/covid-19-grace-aux-livraisons-et-a-la-vente-a-emporter-la-restauration-rapide-en-plein-boom
6) https://bigthink.com/brandon-weber/the-secret-to-why-mcdonalds-is-adding-self-serve-kiosks-at-a-rapid-pace
7) https://www.alioze.com/chiffres-food
Article translated from French