Consumers Prefer To Pickup Takeaway Than Use Delivery Service

Inflation is hitting restaurants hard this year making dining out more expensive than ever before.

Rent increases, labour challenges and food costs are creating a significant impact on inflation in the restaurant industry. 

A report done by top Canadian universities; University of British Columbia, University of Saskatchewan, University of Guelph and Dalhousie University suggest that food prices will increase on average “by another five to seven percent” this year. Vegetables are seeing the
“biggest cost increase of six to eight percent”, along with seafood. The report is also showing a 46.3% vacancy rate for the food service and accommodation industry in Canada.

With these significant cost challenges to the restaurant industry come increases in the price of dining out, and consumers are looking for alternative solutions. 

The data suggests similar trends in the United States as well. 

A report done on US consumers by PYMNTs shows that many consumers are trading “effort for cost”. The report surveyed over 2,000 consumers in the United States in order to learn more about the impact inflation caused on dining habits. Here are some of the highlights:

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Half of consumers eating at restaurants are choosing take out over dining at the restaurant and most are choosing pickup vs. delivery. 

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58% of customers getting take out, prefer picking up their meal at the restaurant over delivery to save on delivery fees. According to the report this behavior is widespread amongst all income groups and ages, suggesting that everyone is making an effort to cut costs.

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Consumers still want to dine out, and pickup takeout is the way to do it.

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PYMNTs states that even though pandemic-related safety measures are no longer in play at restaurants, remote ordering and takeout remain permanent. 51% of consumers eat takeout vs in the restaurant and consumers are opting for pickup 4x more than delivery.  42% of restaurant customers prefer to pick their meals up to avoid having to pay tips.

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Businesses can incentivise pickup vs relying on delivery apps.

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Of the consumers who are opting for delivery, 59% of them said “a 5% discount could persuade them to choose pickup instead”.

Businesses can leverage their own POS technology to help them manage pickup orders rather than relying on 3rd party apps to help cut costs on their own takeout orders. They can do this by activating a POS based solution such as OftenDining or leverage Clover Online Ordering. 

OftenDining allows restaurants to have a branded online ordering platform that compliments their existing website, enabling customers to place orders online.

Clover POS systems have Clover Online Ordering as a feature with end-to-ordering management where online orders go directly into businesses POS. Clover even offers an e-book on how to drive restaurant sales with Clover Online Ordering.

It’s clear that despite the pandemic and inflation frustration, consumers still want to dine out without breaking the bank. This presents a great opportunity for restaurants to incentivise pickup takeout orders in an effort to keep driving business.

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