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 

Convenience Stores Elevated Fresh Foods Sales Success Crushing Blow for Grocery Deli’s

 

At the intersection of growth fresh food sales specifically Ready-2-Eat and Heat-N-Eat prepared food the convenience store sector is simply trouncing the grocery store sector.  In fact, Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® stated, grocery stores should be embarrassed by the way the convenience store sector and garnered share of stomach by simply focusing on the eating habits of our evolving consumer.”

As the Grocerant Guru®, I've always championed the grocery store deli as a delicious and convenient option for busy shoppers. But let's face the facts, folks – convenience stores are giving the grocery store deli a run for their money. On top of that restaurant takeout food growth is simply another point of market share capitulation by grocery stores.  

Here's the skinny: Convenience store foodservice sales are booming, with prepared foods making up a whopping 33.9% of their in-store gross profits. That's a bigger slice of the pie than grocery store delis can claim these days.

Why the shift? Convenience stores are winning on three fronts:

1.        Speed and Simplicity: They excel at grab-and-go options. Think hot dogs rolling on a warmer, pre-made salads, and single-serve beverages – perfect for time-pressed customers.

2.        Value for Money: Convenience stores often undercut grocery stores on price, especially for prepared food items. Their lower labor costs and focus on pre-made options allow them to offer competitive pricing.

3.        Adapting to Trends: Convenience stores are constantly innovating. They're offering healthier options like fruit cups and yogurt parfaits alongside classic favorites. Plus, many feature hot food options that rival fast food joints.

But fret not, grocery stores are still too large to just fade away! They still have the upper hand in several areas:

1.        Variety: Grocery store delis offer a wider selection, with options to cater to different dietary needs and preferences. From gourmet cheeses to organic salads, we can provide a more customized experience.

2.        Quality: We can often boast fresher ingredients and higher quality preparation compared to convenience stores that rely heavily on pre-made items.

3.        Synergy with Grocery Shopping: The deli is a natural pitstop during a grocery shopping trip. Customers can grab a meal to go while picking up groceries for the week.

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Here's a few ways that grocery stores could bounce back: They need to up their deli game! Focus in on:

1.        Fresh, Appealing Displays: Make delis look vibrant and appetizing.

2.        Shorter Wait Times: Streamline service to compete with the speedy nature of convenience stores.

3.        Innovative Offerings: Feature unique, chef-inspired dishes that can't be found at the corner store.

4.        Highlighting Quality: Showcase the fresh ingredients and culinary expertise that goes into deli offerings.

By combining the customer focused touchpoints including; convenience, price, and quality the grocery store deli can reclaim a place as a destination for grab-and-go meals. It's time to make the deli aisle a destination, not an afterthought.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday than tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.