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Restaurant Readiness Index: Winning Brands Embrace Digital-First Economy
Sep 20, 2021
67% of average restaurant’s sales now ordered and consumed remotely
Newton, MA– September 20, 2021 – Paytronix Systems, Inc., the most advanced digital guest experience platform, today published the “Restaurant Readiness Index,” a PYMNTS and Paytronix collaboration, which shows that since March 2020 a digital-first economy has emerged and this has fundamentally changed how restaurants engage with their guests. In this new economy remote ordering and off-site dining now represent the bulk of the industry’s orders, with 67% of average restaurant sales generated by orders placed digitally or by phone for off-premises dining.
Download the full report, 2021 Restaurant Readiness Index
Remote food orders are now responsible for most of the average restaurant’s revenue, but the extent to which restaurants rely on remote versus on-site sales varies with the type of restaurant in question. Sit-down restaurants generate more in-person sales than QSRs, for example. Food orders placed and eaten on-site generate 40% of the average sit-down restaurant’s total sales but just 25% of the average QSR’s total sales. This underscores just how important digital food sales have become since the pandemic first began.
This report concludes that not all remote ordering channels are created equal with online orders accounting for at least 40% more revenue than phone orders for the average restaurant. Just 28% of total restaurant sales are generated by orders placed via phone call. Aggregators alone now generate 16% of the average restaurant’s revenue. Mobile order-ahead is not far behind, however, totaling 14% of the average restaurant’s revenue.
The report findings include:
- Remote food orders are now restaurants’ primary source of revenue. The average QSR now generates as much as 75% of its sales from orders made online or over the phone. Online orders account for over 40% more revenue than phone orders to the average restaurant, and aggregators drive more revenue than any other digital ordering channel.
- Remote versus on-site sales varies with the type of restaurant. QSRs generate more off-premises sales than sit-down restaurants. Food orders placed and eaten on-site generate 25% of the average QSR’s total sales but 40% of the average sit-down restaurant’s total sales.
- Remote orders vary by channel. The average restaurant now generates 16% of its total sales via aggregator, 14% of its sales via mobile order-ahead, and 10% of its sales via desktop website. This shows that restaurants have an opportunity to maximize conversion by providing an abundance of online ordering options.
“The digital-first food ordering habits that consumers have acquired since March 2020 have fundamentally changed the restaurant industry. The brick-and-mortar restaurant is no longer the focal point of consumers’ dining experiences but a single touch point in a much broader, decentralized and digital-first ecosystem. Restaurants have come to understand that providing digital ordering features is key to delivering their customers the food ordering experiences they want when they want them, but some restaurants have yet to realize that digital ordering features are the price of admission in this new market — not a differentiator.” – Paytronix Restaurant Readiness Index.
Methodology
The 2021 edition of Restaurant Readiness Index, a PYMNTS and Paytronix collaboration, takes a close look at how the events of the past 16 months have fundamentally changed the way that restaurants engage with their customers. Between April 1 and May 21, 2021, 514 managers of quick-service restaurants (QSRs) and full-service restaurants from across the United States were surveyed about the ordering features they believe are key to their future success in the digital-first restaurant ecosystem.
PaytronixSystems, Inc.
Based in Newton, Massachusetts, Paytronix is a provider of SaaS customer experience management (CXM) solutions for restaurants and convenience stores. Through its innovative software design and integrations with more than 30 widely used point-of-sale systems, Paytronix empowers more than 500 brands across 30,000 locations, giving them the flexibility to deliver unique, revenue-enhancing guest experiences. Through one-to-one engagement with more than 285 million guests via Order & Delivery, Loyalty, CRM, and Stored Value, Paytronix generates Big Data consumer insights that motivate increased visits and spend. For more information, visit www.paytronix.com.
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