Overview: The Urgency for Independent Restaurants

As an independent restaurant owner and manager, you must wrap your head around what is going on in your business and industry. First, the independent restaurants’ business (and brand) has been subject to major shifts in technology and consumer behavior over the past 10-15 years. National chain restaurants were early adopters of digital technologies – most significantly online ordering – as a result benefitting from double-digit growth, basically taking away orders and customers from independent restaurants. At the same time, consumer behavior and expectations are being influenced by their mobile devices, social media interactions, and information which they receive through their devices through things such as ads and reviews. Finally, companies like Grubhub, Ubereats and Doordash have come between independent restaurants and their customers, effectively charging as much as a 30% commission fee for every order. As a restaurant owner or manager, if you are willing to understand and work through this new world order, you have a great opportunity to grow your business and strengthen your restaurant’s brand.

Key Trend: Overall Industry and Consumer Behavior

  1. The online ordering market has doubled in less than 5 years from 2014 to 2018.
  2. The online ordering market will double again from 2018 to 2022
  3. 65 million consumers will order online in 2019
  4. On average, an online consumer will order 14 times in 2019
  5. The average order size will be approximately $32.50 which will be 8.3% larger than in 2018
  6. Overall, 65% of all online orders begin with a search engine result – e.g., joe’s pizza in Springfield, or Italian restaurants in Hartford… or best Mexican restaurants in New York City
  7. 60% of US consumers order takeout at least once a week
  8. 1/3rd of online orders are $50.00 or more
  9. 20% of consumers spend more on takeout orders than dine-in orders
  10. 70% of consumers prefer to order directly from their restaurant instead of through online aggregators like Grubhub. 
  11. 79% of Millennials (ages 18 to 34) order online – Millennials are 30% more likely to order online than people who are 45yrs or older
  12. 59% of orders from Millennials are for takeout (pick-up or delivery)
  13. 57% of millennials say they order takeout so they can eat while watching movies or tv shows 
  14. Top Reasons why consumers do not order online:
    1. 37% Said that the food too expensive
    2. 20% Said that delivery was not available
    3. 18% Said that delivery was too expensive or too slow
    4. 15% Said that menu choices were limited
  15. 90% of consumers expect to be able to order food on their mobile devices
  16. Online orders will exceed phone orders in 2019 for the first time 
  17. Over 80% of restaurant owners aren’t aware that they can manage their Google Business Listing
  18. Over 85% of restaurants do not optimize their Google Map Listing
  19. Over 80% of restaurant owners would like to do more search engine and social media marketing but do not have staff with these skills
  20. For pizza restaurants, online orders are 18% larger than phone orders 
  21. Online ordering business has grown 300% faster than dine-in business over the past 5 years 
  22. Restaurants without online ordering will ultimately lose 70% of their customers
  23. 43% of restaurant professionals believe that third party apps interfere or obstruct the relationship between restaurants and their online customers 
  24. Over 60% of takeout orders entered manually (on the phone) have errors
  25. Non-Integrated online ordering solutions require restaurants wait-staff to spend over 20 hours per month monitoring and manually re-entering online orders
  26. Online orders will contribute over 20% of a casual dining restaurant’s revenue by 2020
  27. Online ordering experience makes a long lasting business impact:
    1. Drives dine-in traffic – 76% are likely to dine-in ‘IF’ their online experience was favorable
    2. Online ordering customers are more loyal and spend more money with the restaurant
  28. 65% of restaurateurs believe that they lose money with 3rd party ordering companies such as Grubhub, Eatstreet or Doordash. This is primarily because of high commissions costs and other fees.