Zonal’s Glenn Tait looks at whether people will retain an appetite for dining at home once the hospitality sector reopens fully.

Pre-pandemic customers choosing to dine at home would have been considered bad for the industry. With necessity being the mother of invention, however, agile and innovative operators were quick to pivot, meaning meal kits, delivery and click and collect quickly gained consumer attention during the pandemic.

But is dine at home here to stay? And if so, is that good or bad news for operators?

The findings of our recent Plan to Plate report in partnership with KAM Media earlier this year showed that more than a quarter of respondents spent more or the same amount on restaurant/pub meal kits during the pandemic. Separate research from KAM found 9-in-10 consumers want the hospitality brands that they’ve had in their homes during lockdowns to continue offering these ‘at home’ solutions even when restrictions lift. And if they don’t already, about two thirds want their favourite restaurants to start selling ‘cook at home’ meal boxes nationwide.

Appetite for takeaways continues unabated with people remaining hooked on having meals and groceries delivered to their home.

This highlights how consumer behaviour has changed during the course of the pandemic and the lasting effect it will have in the immediate and long term. Our research emphasises that ‘a more relaxed environment’ was the benefit people liked most about staying in – something that, on the face of it, is not great news for hospitality operators.

Strengthened loyalty

However, that need not be the case. Looking at the bigger picture, offering food and drink for at-home consumption not only creates a new revenue stream through delivery and click and collect channels, but also deepens relationships with customers and brands, providing further opportunities to capture data, drive loyalty and convert at-home diners to in-venue visits.

Offering delivery and click & collect options allows operators to capture customer data and build a direct relationship with guests, something often missing with third-party delivery companies. Delivery and click & collect bridges that gap between visits and can encourage and incentivise customers to stay engaged with your brand and continue to spend money on at-home experiences.

This continuous engagement at every stage of the customer journey gives operators a deeper understanding of guests’ habits and preferences, which ultimately means more personalised marketing and promotions to attract them back again and again.

Technology can also streamline operations to ensure these new channels do not impact existing standards in-venue and result in greater efficiencies. No need for orders to be taken from one system and input into another, for example, saving staff time and reducing room for error; and controlling the flow and number of orders from multiple channels, in one central place, will help prevent the kitchen from becoming overwhelmed. With menu items being unavailable to order a major bugbear for customers both in-venue and at home, integrated tech helps by using real-time stock levels to update online or in-app menus. With 30% of people saying short wait time is a priority for them when ordering delivery, integrating ordering, EPoS and kitchen management systems can ensure the quickest possible delivery times.

Encourage in-venue visits

Attracting customers back to venues will require greater focus post-pandemic: poor weather, travel time and problems booking are all barriers to visiting. But there is a balance to be had here – using technology and social media to promote food and drink deals and advertise events will become even more important, especially for smaller operators.

This is also where operators can take advantage of the at-home opportunities available to them: a home-delivered tasting menu of new dishes or drinks only available if customers visit might be one way of making the at-home channel work for you. Consumers are increasingly less likely to visit a venue on a whim, as our recent research has highlighted 1 in 3  look up photos of the venue and food prior to visit and are far more likely to book ahead with more than half (51%) saying they are now likely to reserve, so that they know there’s a table available for them.

With this in mind, imagine a home-delivered tasting selection so good that customers just have to make a booking – through a QR code or online or via an app, – to sample the full menu.  This example highlights how effective use of technology can offer an enhanced experience, driving consumer engagement and bookings, as well as responding to rapidly changing consumer behaviours.

Enjoyable experiences

Technology can create an even more enjoyable hospitality experience for those keen to get back out and socialise; it can help smaller operators reach the in-home enthusiasts who’ll mix the new-found enjoyment with visits to venues, and can help convince those perhaps more cautious in nature to venture out with targeted food and drink offers.

And always be fast and flexible, because the majority of people (61%) will use at least one tool to choose a venue whether that be through social, review sites or your own website, so you must be ready and able to influence their choice.

Get in touch with Zonal today to discover how our connected technology solutions are helping hospitality businesses of all shapes and sizes to understand and enhance their customer journeys, make significant service improvements and exploit new revenue streams.

By Alison Vasey, Group Product Director, Zonal

Robot waiters may seem a far-fetched idea right now, but technology has irreversibly cemented itself as an integral part of every stage in the hospitality customer journey: pre-visit, in-venue and post-visit. For hospitality operators that means, not only accepting that the technology we have recently adopted during the pandemic is here to stay, but that technology will also be key to success in the future.

Voice activation in hospitality

Zonal’s GO Technology research, in partnership with CGA, investigated the future of technology in hospitality earlier this year, and the findings make for interesting reading – whatever the size or stage of your business. Voice activation for example, is something we are all familiar with – who these days hasn’t asked Alexa what the weather forecast is or, “Hey Google! Tell me a joke”? And the report shows there is appetite for this to be transferred to pubs, restaurants and the wider leisure sector.

Pre-visit for example, consumers could be using this tech to search for venues, and in fact, the report showed that nearly 15% of people are already very interested in this, while in-venue it has uses too. In fact, 13% of people are very interested in using voice ordering when eating and drinking out.

These numbers may seem low now, but we fully expect them to rise rapidly, as the technology improves and Gen Z and Generation Alpha grow up – after all, for today’s 10 to 20-year-olds voice activated tech is nothing unusual at all. When put in this context, it seems not a case of if but when this technology will be a regular feature in hospitality businesses.

Taking online and mobile ordering one step further

Talking of tech that is a regular feature in pubs, bars and restaurants, online and mobile ordering, while in-venue, has become just that for many consumers. This is as a result of restrictions due to the pandemic, yes, but research shows that now it’s been adopted and normalised, it’s here to stay. Some 56% of 18 to 24-year-olds told us that they would prefer to order online in-venue, even once the country has been safely vaccinated (GO Technology, March 2021).

Operators need to keep this in mind and look at how they offer not just a basic capability but enhance it too, to help build and future proof their businesses. The GO Technology report suggests one area worth looking at is providing a way to track orders – not just when dining at home but when in venues too. This is a popular concept among those surveyed, with a quarter saying this was appealing. A fifth want a way to set up bar tabs and the same number say they’d like to be able to easily repeat previous orders.

With such technology already readily available in other sectors, hospitality needs to ensure it isn’t left behind.

The emergence of VR and AR

Virtual reality (VR) and augmented reality (AR) are also familiar terms to today’s drinkers and diners, especially those at the younger end of the scale. This is technology that can be harnessed to engage consumers and drive revenue pre- and post- visits to venues.

One third of late-night bar users said they’re interested in VR tours and experiences and 13% of all consumers say they felt that way about AR capabilities. At first glance the latter number may not seem high, but it’s double the number that said they would like AR features on apps three years ago, which indicates a significant shift and one which experts forecast is only likely to increase.

Menus go digital

Valuable insight from our recent Plan to Plate customer research in partnership with KAM sheds light on other areas to focus on too. For example, who would have thought almost a quarter of customers now prefer digital menus over any other type of menu – rising to 36% for those dining with children.

So yes, robot waiters may be a little way off yet (although 13% of those surveyed for March’s GO Technology report said they are very interested in the idea and this rose to a quarter of late-night bar users, a substantial percentage) but investing in technology is now essential for hospitality operators and knowing where to invest your precious cash reserves for the most effect is important.

Operators should think about taking a closer look each stage of the customer journey to work out where tech solutions can relieve pain points pre-visit, in-venue and post-visit, and therefore where investment will be best targeted in the short and long term.

The customer journey in hospitality has been transformed by technology, the adoption of which has been accelerated by the pandemic. To gain a deeper understanding of what was happening in the market, Zonal partnered with hospitality research firm KAM Media to take a deep dive into the customer journey from “plan to plate.”

KAM Media conducted an in-depth research study with 1,004 UK adults – a nationally representative sample of British pub, bar and restaurant-goers. The full report is available here.

Below are 7 valuable takeaways for operators:

1) 1 in 3 people now look at photos and menus online before visiting

This rises to 1 in 2 for younger people and demonstrates the increasingly digital nature of the typical hospitality customer journey. The research showed that most people start their journey online, doing either a “general internet search” (38%) or using Google’s “near me” search tool (25%).

2) 1 in 6 customers are more likely to book ahead now vs pre-pandemic

At the same time, a third said difficulty making a reservation was one of the key reasons they might decide to stay at home, so investing in a seamless booking system that offers real-time availability can really give an operator the edge.

3) 38% of hospitality customers will be more likely to try new venues once the industry fully re-opens

New venues or familiar venues that are offering something new will be drawing in customers this summer and beyond. This is partly driven by the desire for new and exciting things to do after months of lockdown – but also to support local venues and to ensure that every visit counts.

4) 56% of customers would like to see table service continue

Could it be that Covid has killed off the peculiarly British practice of ordering at the bar? Probably not, but this insight does indicate that a large proportion of customers now see the benefits of ordering and paying at table. Operators will need to look at offering both where possible.

5) Mobile order and pay has become more important over the last 12 months

Over 40% of consumers said so, which goes to show how technology originally adopted as a solution to a pandemic problem, will endure in the future. Unsurprisingly this rises to 65% of Millennials, although nearly half of people reported being frustrated when “forced” to pay via a mobile app, so it makes sense to offer a range of payment options to cater for differing preferences.

6) 86% of customers would be interested in joining a loyalty scheme

The power of loyalty schemes is generally underestimated by the hospitality sector but they have a number of benefits for operators. The report found that they drive footfall – for 1 in 7 customers, a loyalty scheme has a significant influence on which venue they choose; they encourage reviews – 31% of respondents say they would leave feedback if rewarded with loyalty points, and people are happy to share personal information in exchange for loyalty rewards as well – 79% would do so if they received tailored rewards as a result.

7) Online reviews are becoming even more important

Nearly half (47%) of consumers said they looked at online reviews before booking. Smartphones are key to an explosion in online reviews, with 1 in 3 customers saying they are more likely to leave a review if they can do it via their smartphone, rising as high as 44% for those in the 25-34-year-old bracket.

To download the full research report and find out more about the essential role of technology in customer journey, visit our dedicated resources page: Connecting the Customer Journey

If you’re over 55, special offers and deals are likely to get your attention. If you’re between 18-34 it’s most likely to be the drinks menu. Zonal’s GO Technology research explains how customer behaviour and preferences change depending on age and gender.

Pub and restaurant customers are a diverse bunch, but there are some interesting patterns when you start crunching the data: different groups of people have very different expectations when it comes to the booking and dining experience.

According to Zonal’s GO Tech research, there are distinct differences between differing age groups. Older customers are much more likely to check a pub or restaurant’s website before visiting the premises, with 34% of over-55s looking for special offers and deals compared to just 26% of 18 to 34s. The pattern repeats with booking information – 44% compared to 32% – and location information, which was required by 32% of over-55s compared to 22% of 18 to 34s.

Some things are universal, however. Across every demographic, the reasons for using a restaurant’s website are ranked in the same order of importance: the menu first (88%), followed by opening times (63%), booking information (38%), offers and deals (31%) and the drinks menu (29%). If your website people aren’t making it really easy for people to get those bits of information, you might want to have a word: when it comes to the biggest frustration with restaurant websites, 44% of people across all demographics say that it’s the lack of a viewable food menu. Difficulty in using or accessing the website is second (20%), followed by lack of booking information (12%), not listing opening times (10%) and not having a viewable drinks menu (7%).

That’s not to say that there aren’t some demographic differences in that data. The drinks menu is much more important to younger consumers: 41% of 18 to 34s check the drinks menu before visiting compared to just 21% of over-55s.

Points to remember:

• Over 55 are more interested in special offers and menus than any other age group
• Older customers are much more likely to check a pub or restaurant’s website before visiting, so make sure all of the information they are looking for is clear and easy to find
• Website features and frustrations are common across all demographics: lack of a menu is the biggest sin
• Some information is more important to specific groups: older consumers want location info and younger ones are looking for a drinks menu

• The most important thing about data is what you do with it – where you invest your valuable time, IT budget and marketing effort.

Discover more about how Zonal’s loyalty management system gives you the tools to build smart loyalty programmes that reward your most loyal customers and encourage increased spend.