Is Digitization the Key to the Survival of the Restaurant Industry?

The restaurant industry ended 2020 with total sales that were $240 billion below previous forecasts as reported by the National Restaurant Association. The industry responded by switching operations, (i.e. offering more outdoor dining opportunities), streamlining menus, offering comfort foods, and relying on smaller teams. Digitization—a key strategy for savvy businesses offering both takeaway/delivery and in-house dining options—is one that proved highly successful, so much so that many digital services are predicted to stick around for the long run.

Relying on Order & Pay Systems

Order & pay systems, currently in use by top-selling fast food chains like Chili's, McDonald's, and KFC increase customer spending by up to 30% owing to factors such as the attractiveness of imagery, the ability to suggest extras, and the ability to promote meals and other money saving options to clients. These systems are appealling when diners are keen on a quicker experience that enables them to have full access to a menu (and to complete their order and pay) so they can pick up their food without having to wait in line.

Developing Dynamic Websites

In current times, when ubiquitous connectivity affects everything from where we dine to our leisure pursuits, having an attractive, useful, easily manageable website is key when it comes to converting Internet audiences into paying diners. A recent survey from MGH has shown that 77% of diners visit a restaurant's website prior to dining in or ordering out. Of this group, almost 70% have been put off by a restaurant because of a poor quality website. Top features to include in a quality online menu include appealing imagery, SEO-focused content, mobile compatibility, responsiveness and mobility features, promotional videos, and social media integration. Restaurants should also offer diners the chance to make online reservations.

Communicating Via E-Mail

A Marketing Sherpa study has shown that 72% of adults in the U.S. prefer email as their main means of communication when it comes to hearing from businesses. Another extremely effective method is to use mass SMS - just make sure you're aware of recent SMS trends before starting the campaign. Creating a wide list involves many tactics—including asking your customers to provide you with their email when they visit your restaurant physically. Another important step is to create a landing page, which you can entice customers to in various ways; for instance, by offering them a 10% discount on their next bill if they sign up to your online newsletter. Social media advertising (targeting audiences to your landing page in exchange for a discount or free items) and running a competition via social media can also help to grow your email consistently. Finally, you can try out lead generation software to increase lead generation, improve messaging, and enjoy better visibility in your market.

The restaurant industry was one of the hardest hit in 2020, and those wishing to survive and thrive may benefit from adopting digitization strategies to keep client numbers growing. Order and pay systems, website optimization, and improved emailing strategies are just three ways to create a larger client base and boost customer loyalty.