, UK

Technology must keep up with home delivery services, says research

According to a new global survey of over 4,600 consumers conducted by AlixPartners.

The research found that diners are opting for home delivery services and are increasingly using coupons and promotions. As a result, investment into the restaurant technology market must increase to meet this growing demand, according to the business advisory firm.

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

The UK delivery market is expected to treble by 2020: delivery sales estimated at £2.0 billion in 2015 are forecast to reach £7.6 billion by 2020. Diners are also demanding more healthy menus with over 90% saying this is ‘somewhat important.’ In the UK, 56% of consumers felt that healthy menu options were important when choosing where to dine out.

British people expect to dine out 3.2 times per week on average, where as in Brazil and China, consumers expect to dine out much more than they have
over the past 12 months.

Average spending per meal per person in the UK is set to decline by 0.6% to £14 compared to the £8 or less global average. However, 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.

Globally, 30% of meals are now eaten on-the-go. The prepared foods segment including pre-packaged salads and sandwiches is expected to grow by 3% through 20211.

Paul Hemming, Managing Director 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 for restaurant companies and the way in which they operate. 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."

“Globally, we’re seeing different organisational 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 for less.”
 

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