Sunday, June 16, 2024

The Digital Dilemma: Dine-In vs. Digital Experiences in the Restaurant Industry

 


In an era where digital convenience is king, new insights suggest that customers who dine in at restaurants tend to be happier than those who order online. This revelation, backed by Steven Johnson, the Grocerant Guru® at Tacoma, WA-based Foodservice Solutions®, is based on data from Merchant Centric. 

Merchant Centric's proprietary data has given birth to a new term: The Happy Customer Index. This index scrutinizes reviews for delivery, to-go, and mobile app experiences, offering a unique perspective on customer satisfaction in the digital age. 

Over the past three quarters, the Happy Customer Index has been instrumental in determining which fast casual, casual, and fine dining brands perform the best according to customers. The index analyzes content from millions of reviews across platforms like Google and TripAdvisor, providing insights on over 100 key metrics, such as food, cleanliness, staff demeanor, and value. 


The latest focus of the index is the digitally-enabled off-premises business, which has seen a surge due to the pandemic-induced shift. To gauge digital guests' satisfaction, Merchant Centric examined over 1.25 million reviews mentioning "to go," "delivery," and "mobile apps" from September 2022 to August 2023. 

The findings? Digital experiences generally score about three quarters of a star to a full star lower than dining in. However, delivery services are closing the gap on the to-go experience at a faster rate. Mobile app mentions, while not necessarily referring to offsite ordering, are mentioned the least and fare the worst. 

Consider these statistics: 

·                     The average rating for reviews mentioning "mobile apps" is 2.33 stars out of 5 stars. 

·                     The average rating for reviews mentioning "delivery services" is 3.02 stars out of 5 stars. 

·                     The average rating of reviews mentioning "to go" is 3.40 stars out of 5 stars. 

By comparison, the restaurant industry average rating during the same period is 4.11 out of 5 stars. 


The most significant disparity between dine-in and digital mentions in reviews comes from mobile app experiences. As more brands invest in their mobile presence to drive traffic and frequency, any subpar experience can lead to frustration. For instance, Taco Bell generates 32% of Reddit conversations among the top 10 quick-service restaurants, but these conversations predominantly focus on dissatisfaction with the brand’s app, including order inaccuracies, glitches, and usability challenges. 

However, there has been improvement in mobile app performances, as well as for to-go and delivery experiences. To-go fared the best among reviews and was mentioned the most, though delivery improved the most throughout the past year. 

Adam Leff, Co-Founder of Merchant Centric, believes the improvement within the delivery channel is partly due to brands' increased focus on their digital business. This includes redistributing labor to digital makelines, adding features like pickup shelves, or implementing location-based or sequencing technology. 


Leff said, "It is no surprise there is a gap between dine-in and to-go/delivery. People just expect that when they don’t have the dine-in service or hospitality, it will not be as good. To a large degree, they’re forgiving because of this. The important thing is we’re seeing steady improvement in overall (digital) guest satisfaction.” 

Are you feeling stuck in your current approach? Interested in learning how Foodservice Solutions' Five Ps of Food Marketing can enhance your retail food brand while creating a platform for consumer convenient meal participation, differentiation, and individualization? Reach out to us at: Steve@FoodserviceSolutions.us 



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