Be the Disruptor: 3 Digital Technologies Changing Restaurant Strategy
Online food ordering is booming, with estimates that delivery sales from this trend will rise an average of 12 percent a year for the next four years and total $76 billion in sales. In short, digital order-taking and delivery are quickly becoming an essential part of a successful restaurant strategy. In the current landscape where new and evolving technologies like online food ordering apps, mobile payments and third-party delivery services are disrupting brick and mortar, many current restaurant business practices are becoming obsolete.
As the restaurant industry evolves, you can keep going along as before and maintain a plan that you consider “tried and true” – but eventually, that plan will lead you into obsolescence. Instead of being disrupted, why not be a disruptor? One of the surest ways to remain competitive in the face of change is to embrace these same emerging technologies and shifting consumer demands and use them to your advantage.
Whether you are managing multiple locations in one market or your reach spreads across the globe, the right tools can enhance your performance. Building a holistic approach to your digital retail strategy that includes powerful technology tools means your organization can more quickly react to external pressures and operationalize new business processes to improve the customer experience and surpass corporate financial goals. Innovative restaurant firms which have already hopped on the digital trend and are reaping the rewards and beating the competition.
Below are three ways you can improve operations, drive sales and gain repeat customers.
- Enhance your processes - Online food delivery and mobile ordering apps are revolutionizing one of the most important consumer needs in food service — convenience. Jumping on the demand for food delivery services, McDonald’s partnered with Uber Eats to provide customers at 13,000 of its global restaurants with at-home delivery. By adopting disruptive digital technologies into their business processes, restaurants can increase profits and improve customer experiences both inside and outside the store.
- Give customers an experience - No matter the concept, a comfortable ambiance and memorable dining experience draw in customers, gets them talking about their meal with friends on social media, and brings them back for another visit. A heightened customer experience means more than simply having a social media presence for millennials to tag food selfies, although this unique trend has yielded impressive results. Rather, streamlining the entire customer experience - from order taking to food prep to the lasting sensory experience of eating - gives customers a one-of-kind experience that will increase foot traffic. Mobile apps can also influence the customer experience. They can dynamically offer specials and discounts, suggest upsell menu items, recall customers’ favorite foods from previous orders and help manage customer expectations during delivery.
- Get good data - Data provides restaurants an invaluable opportunity to learn both about store performance and consumer behavior. For example, restaurants can leverage operational data to better estimate staffing levels by daypart, thus improving top line sales and the customer experience. Savvy operators also utilize loyalty programs to gather valuable behavioral data. These programs are a great way to draw in repeat customers while gathering personalized information that help firms better understand their needs and expectations.And organizations investing in this strong one-on-one marketing method are getting great results. Loyalty programs built around personalization have worked wonders for some industry giants: Chick-fil-A’s loyalty program boast a 20% conversion rate with customers.
Your customers and employees already know that digital equals easier, so what are you waiting for? Tango can help you embrace disruptive omni-channel trends and use them to your advantage to drive real estate strategy and market optimization. By aligning your physical footprint with where and how your customers dine, we can transform your organization from a potential victim of disruption to a force of change.
One way that organizations are embracing disruption is through the application of artificial intelligence and machine learning to location strategies. Learn more by watching the on-demand webinar below.