Can “Delivery &Tech” Save Casual Dining Chains?

Can “Delivery &Tech” Save Casual Dining Chains?

            When we first conceived this subject for discussion our thought process revolved around the difference between the “dine-in” versus the tech-driven delivery experience.  Our research took us in another direction on how we thought best to approach this change in consumer behavior.  We believe our review will provide answers for those operators seeking to grow their overall sales; however, we don’t want to leave our “dine-in” brethren wondering what happened.

            First and foremost restaurant operators have always been in the “guest service” business and have sought to make the experience at their hospitality establishment enjoyable, pleasant and rewarding and much of this has been accomplished through convenience!  There’s that word again and as industry observers have noted previously, operators who have embraced the latest technology have often been rewarded through growth of both their brand and in turn their sales. Let’s review some recent industry news as a basis for this approach.

            American’s are “time-crunched” today more than ever and since the invention of the drive-thru window the restaurant guests, and the industry at large, may not have experienced as many opportunities to allow their demand for convenience to be realized in the literal and virtual world.  A recent story (NRN, 3/19/18) of tech opportunities in use and on the horizon suggests guests may digitally be added to a “wait list”, order food from their car or home “smart speaker” or their favorite social media site or go “old school” with a hardware piece once they’re seated at their table. WOW, it’s 2018 and there’s operators still using hand-written guest checks!

            Another manner for consumers to either save time or get-it-back is to take advantage of the many different opportunities for delivery across all operator segments.  As consumers we’re all familiar with the original delivery options such as Chinese food or pizza as these were the both in the delivery vanguard.  It doesn’t hurt either food group that most consumers were okay if the delivered item was a little cool, pop it in the microwave or oven respectively and dinner is finished!  The issue is that we’ve become a nation of “foodies” and the expectation bar has been raised along with the time-convenience bar.  This translates into restaurant operators who must either embrace the delivery opportunity or potentially wither on the vine.

            Restaurateurs like to pride themselves on their service just as much as the quality of their food but in America you have to make a buck doing it!  Savvy operators are now creating not only space within their physical footprint to execute both take-out and delivery but they’re also addressing the need for menu items that “travel well” (USAToday, 4/24/18) so those foodie consumers will enjoy their meals once they arrive home.  The next step for traditional brick-and-mortar operators may be to dash the entire restaurant experience and pour on the convenience.  Some multi-concept casual operators (NRN, 4/26/18) are creating units that are totally dedicated to the take-out and delivery consumer.  This appears to be the ultimate in convenience and in some cases could address the challenge of labor shortages in some key markets.  My concern is how this might dilute the brand-experience.

            Loathe as I am to admit it, the future for casual dining chains may continue to be the metamorphosis into these take-out / delivery hybrids as their hard-footprint cousins may be relegated to high-volume corridors.  Perhaps future visits to a restaurant where guests actually sit down and are served will be at what we traditionally refer to as “special occasion” or destination restaurants that again rely upon population density to be viable.  No matter how the industry evolves we’ll be here to assist our clients with their challenges at www.themenuspring.com.