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Investment in restaurant technology market must increase - survey

DUBAI, October 30, 2016

Diners are opting for home delivery services and are increasingly using coupons and promotions, according to a new global survey of over 4,600 consumers conducted by AlixPartners.

Online ordering is regarded as the most important technological offering that a restaurant operator can have, according to 53 per cent of diners questioned - ahead of digital menus (49 per cent) and loyalty programs (48 per cent)

Diners are also demanding more healthy menus with over 90 per cent saying this is ‘somewhat important’. Moreover, spending on convenience and fast food meals is expected to decline over the next 12 months as diners plan to “trade up” and treat themselves at higher-end restaurants, the survey revealed.

As a result, investment into the restaurant technology market must increase to meet this growing demand, according to the business advisory firm.  

Dr Tobais Plate, at AlixPartners said: “As home delivery services and eating-in grows in popularity, less is being spent on convenience and fast food meals. This has significant implications on restaurant operators and the way in which they manage their supply chain. Restaurant chains will need to keep up with the evolving technological needs of diners to ensure they stay ahead of more innovative competitors. That said, the quality and sustainability of food sources is continuing to grow in significance for diners.

“We’re seeing different organizational structures emerge to manage expansion, and handle procurement and supply chain effectiveness. Technology will continue to play a major role in the expectations of the modern diner; the real challenge will be for restaurant operators to keep up to speed with their customers’ needs to ultimately produce a higher quality offering with less.”

Additional survey findings include:

Quality of food critical - Consumers globally rank food quality (62 per cent) as a key consideration when dining out, while over half of those surveyed want their food to be free of artificial ingredients and preservatives.

Healthy appetites on the rise - Over 90 per cent of consumers consider healthy menu options as at least ‘somewhat important’ when deciding where to eat. Italian and Chinese diners are most likely to consider this ‘extremely’ or ‘very’ important, while those in the UK and Japan are least interested.

More meals on-the-go - Globally, 30 per cent of meals are now eaten on-the-go. The prepared foods segment including pre-packaged salads and sandwiches is expected to grow by 3 per cent through 2021.

Rise of cheap deals - Diners plan to reduce spend by eating at less expensive restaurants (35 per cent) and utilising coupons, promotions and other discounts (34 per cent) in the coming year: more than 70 per cent of them say so in China and Brazil.

Decline in number of visits - Customers in the US and South Korea are most interested in cutting back on the number of visits.

Global chains, local markets - Global restaurants are gaining traction in local marketplaces worldwide, partly because they are able to get some key elements right. They are able to adapt and localise their menus. For example, Domino’s in India tailored its offering to suit local tastes by delivering to trains as well as offering vegetarian options. Higher customer expectations will put more pressure on supply chains and global partners to ensure they deliver the brand consistently. - TradeArabia News Service




Tags: investment | technology | restaurant | Home | market | delivery | popular |

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