Independent Operators

Restaurant app use rising, consumers ordering less

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October 4, 2021

More restaurant customers are tapping mobile devices with one-third (35%) placing more orders on apps compared to three months ago and customers are likely to spend more when ordering via a restaurant app.

When it comes to not using restaurant apps, missing menu items (47%), cold food (45%), a long wait time (42%) and the lack of efficiency (41%) were cited as top reasons.

Those are prime findings from Bluedot's fifth State of What Feeds Us report. This year's report offers insight into consumer expectations to support restaurant brands as they work to navigate ongoing operating, social, and economic shifts over the past year and a half. The research was based on a survey of 1,508 American consumers, according to a press release on the findings.

The report revealed a steady rise in mobile ordering, reinforcing the critical importance of mobile initiatives for restaurant brands. According to the data, consumers also deleted restaurant apps if menu items were missing or if there was limited ability to customize orders. Those polled indicated mobile order pickups often involved excessive wait times and flagging down staff.

The report also highlighted that consumers favored self-service or digital ordering over ordering from restaurant team members, which for some brands could address the crippling labor shortage facing restaurants throughout the country. The data further signaled that price increases have had a significant impact on consumer restaurant habits.

Nearly two-thirds (63%) of participants indicated they have ordered or visited less due to higher prices.

Fast casual restaurants are taking back customers lost to quick serve restaurants since the pandemic, with consumers visiting fast casual restaurants more often, up to 24% from 21% in May. Nevertheless, drive-thru visits remain high, at levels that have been broadly consistent since the pandemic.

"Rapidly adapting to pandemic and economic fluxes is a massive challenge for restaurants and the labor shortage compounds the problem. The only sustainable way to address the pain points is to rebalance digital and staffing resources by utilizing mobile strategies to alleviate stress in customer facing interactions while complementing those processes that are labor intensive," Judy Chan, Bluedot CMO, said in the release. "The report continues to signal rising consumer demand for better functionality, ease and convenience. This is an opportunity for brands to eliminate friction across the customer journey, from the moment an order is placed through to the moment a customer picks up their order. For restaurant brands, the digital pivot is imperative to getting the customer experience right."

Additional findings fell into specific categories, including:

Restaurant apps reign supreme over third-party apps. More than half (57%) used mostly or all restaurant apps compared to third-party apps in the last month.
Consumers want more mobile apps for local chain restaurants, but the apps must have easy ordering and easy payments. Consumers ranked local chains as their second most desired type of apps and loyalty programs. Must haves for local chain restaurant apps include easy ordering (66%), easy payment (61%), loyalty/rewards points (52%), and coupons and/or deals (52%).
Consumers are ordering less. 63% of customers are impacted by recent price increases. 32% are ordering less at restaurants while 31% are visiting less often. Better prices could yield more app downloads. The vast majority (90%) would download and use a restaurant app more often if it meant access to better prices. Convenience holds more value for high income earners. 43% of high-income earners say convenience is more top of mind than pricing.

Self-service ordering is preferred over ordering from restaurant staff. 43% prefer using their mobile phone when placing orders. 17% prefer using either their mobile phone or kiosk while 18% prefer speaking with a staff member.

Loyalty programs yield repeat business. Two-thirds (69%) stated that loyalty programs incentivize them to revisit a store or restaurant more frequently. Points and rewards top reasons consumers join loyalty programs. One in two ranked points and/or dollars off for rewards as most important followed by coupons. Consumers equate loyalty programs with better service. As loyalty members, consumers state they receive personalized deals and coupons (45%), orders are available upon arrival (28%), they receive better pricing (26%), and they're thanked for being a loyal customer (26%). Loyalty programs are most popular for fast food. Consumers are most interested in joining fast food loyalty programs compared to fast casual, local chains, etc.

Consumers are snagging deals on social media. 52% say social media impacts their app downloads and usage. Just over a quarter (27%) use social media to find deals and coupons. Gamification draws consumer engagement. 52% would be more likely to interact with a restaurant if the brand was offering a game or contest. 24% would download the brand's app, 23% would order from the app, and 19% would join the brand's loyalty program.

Drive-thru visits remain high. Nine out of 10 consumers visited the drive-thru in the past month, remaining consistent with the last report findings in May.

Fast casuals are beginning to take back their customers. 43% visited mostly or all fast food restaurants compared to fast casuals in the past month, down from 45% in May. Visits to fast casual restaurants are increasing with 24% visiting mostly or all fast casuals compared to fast food restaurants last month, up from 21% in May. One-third visited fast food and fast casual restaurants equally.
There's also been uptick in curbside pickups. Nearly two-thirds (65%) utilized curbside pickups at fast casual restaurants in the past month, an increase from 60% in May. Consumers who make over $50k (28%) visit more fast casual restaurants compared to those who make under $50k (19%).