Digital Food Sales Drive Grocerant Growth

 

Gen Z and Millennials are digital natives and have never had to wait for much of anything.  Today it is at the intersection of technology, lunch, dinner, and snacking that digital ordering has become second nature for the two top demographic cohorts drive success with retail foodservice according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Consumer are dynamic not static, they more forward at times they look back but rarely do they move backward and if they do it’s not for long according to Johnson. There is no doubt that the adoption of digital menus, digital ordering, and digital marketing have become the mainstay driving growth within the Grocerant niche filled with Ready-2-Eat and Heat-N-Eat fresh prepared food.

In a new report by released at the Food on Demand Conference in Las Vegas, NV by Paytronix Systems, titled; Paytronix Order & Delivery Report 2022: Navigating the Digital New Normal, found that digital orders have risen to one-third of total restaurant and convenience store food orders, up from just 12% pre-pandemic. While in-store sales remain down by nearly half, digital orders have remained elevated at 113% of pre-pandemic levels.

Andrew Robbins, CEO of Paytronix, stated, “Our ‘New Normal’ means the digital guest experience is no longer secondary to the physical experience, it’s front and center and marks one of the biggest changes I’ve seen in 20 years working with brands,” … “The opportunity for brands to use artificial intelligence to make experiences more personalized is huge. Learning directly from guests, presenting them with recommendations that resonate and instantly responding to their feedback with a personalized message from the store manager, is elevating brands that rely on their ability to connect with their guests.”

 Let’s look and more of the report findings:

·         Rise in Takeout Orders – While delivery was king before and during the height of the pandemic, more recent data indicates that takeout orders now dominate digital orders, with numbers even higher than they were pre-pandemic. Takeout jumped from approximately 35% of orders in January 2020 to a majority in March of 2022, a trend that appears to be increasing.

·         Third-Party Delivery Is Here to Stay – Third-party services will continue to play an important role in a customer acquisition strategy. To achieve success in today’s New Normal, restaurants and c-stores need to embrace new technology and third-party options and explore how to successfully integrate them into existing operations.

·         Delivery Customers are Different – For much of 2021, the average delivery tip was 12.5% of the subtotal, more than double takeout order tips. And 2021 takeout orders included a tip just 37% of the time compared to nearly 73% of delivery orders. Delivery customers are also more loyal, with 31% of orders coming from repeat customers.

·         Customer Feedback – Saving a guest relationship pays off. Paytronix data shows that issuing a coupon costs a restaurant $2.30 on average, but results in a $9.20 lift in that customer's lifetime value. That 4x ROI means a timely guest recovery strategy is a must-have.

·         AI Is Key to Gauging Customer Sentiment – Fifteen percent of reviews with a rating of 4.5 or better actually have a negative sentiment and could benefit from action, while 3-star reviews most frequently contain negative sentiment.

Consumers are dynamic not static. Are you ready for some fresh ideations? Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter