POSist, a leading cloud-based restaurant technology platform has released its India Edition of POSist Restaurant Industry & Market Evolution (PRIME) Report.
The survey, launched in September, examined the impact of COVID-19, changing consumer behaviour towards dining and food delivery, and the new areas of technology restaurateurs are investing to build customer trust. In total, 300 senior executives in the restaurant industry participated in the survey across India.
“What we are seeing from this survey is the opportunity for leveraging technology continues to be a major lever for restaurants to thrive in the ‘new normal’. In order to keep up with the pace of change, restaurateurs are experimenting with delivery models like Cloud Kitchen and Direct-to-Consumer channels to build a community of customers they can engage and grow. It’s not surprising that 80 percent of restaurateurs in the survey agree that technology is important to run a restaurant business. We believe businesses that have been able to quickly adapt technology are better equipped to reopen with ease.” Ashish Tulsian, Co-Founder & CEO of POSist.
IMPACT OF COVID-19
High operating costs and rentals are the biggest challenges in the industry
During the lockdown food orders were limited to mostly takeout and delivery, forcing many restaurants to turn into delivery outlets. 65 percent of restaurant owners across India ranked high operating costs in form of variable expenses such as labour, food, salaries, marketing as their biggest pain point, followed by 55 percent citing fixed rentals as a challenge.
Four in every ten otherwise dine-in only players started delivery services
52 percent of the respondents placed their bet in setting up a Cloud Kitchen or a delivery-only outlet. Followed by 44 percent who expressed interest in investing in technology to digitize their restaurant operations. Interestingly, 40 percent otherwise dine-in-only players stated they have ventured into delivery services post-lockdown.
SHIFT IN CONSUMER BEHAVIOR
80 percent of Consumers opt for hygiene and safety over price
COVID-19 pandemic is likely to alter consumer behaviour permanently and cause lasting changes to the way people eat out. The survey highlighted that 80 percent of restaurant operators feel that quality and safety will surpass price as a decision-making factor for cost-conscious customers.
43 percent of orders are clocking via direct-to-consumer (D2C) channels
As per restaurants, 43 percent of their orders came via direct channels. The majority, 57 percent of orders still come from food aggregator platforms. Out of the 43 percent who choose direct channels- half of the respondents prefer ordering via WhatsApp or Mobile number of the restaurant, 28 percent choose the brand website or app for ordering and the remaining 22 percent selected social media channels like Facebook and Instagram for direct ordering.
This hints that as food delivery proliferates, consumer behavior is changing and perhaps to the advantage of the restaurant operator. As consumers become more familiar with delivery and ordering online, they’re more likely to choose a direct channel to order from the brand.
TECHNOLOGY ADOPTION IN RESTAURANTS
One in three restaurants use E-menu
The survey reveals that 33 percent of restaurants have installed an e-menu using a QR code ordering technology at their outlet. QR based ordering keeps contact between patrons and the servers at a minimum, thereby maintaining necessary social distancing. Half of the restaurant owners mentioned that they have an integration with a digital payment provider, and almost 40 percent of restaurants have their own online ordering website.
Four in Ten Restaurants are willing to invest 10-20 percent of their revenue in technology
POSist believes that most of the restaurant technology upgrades are features that many restaurants already had on their radar – the pandemic simply has accelerated the technology deployment in the restaurant industry. It is interesting to note that 80 percent of the restaurant operators agree that deploying technology is important in these times. This sentiment can be corroborated by the response of 40 percent of restaurant operators who are willing to invest between 10-20 percent of their revenue in technology.
Launched in 2012, POSist is a leading cloud-based restaurant technology platform and offers scalable and easy to use point-of-sale technology, enabling businesses to automate operations, integrate with aggregators, delight guests, and grow their revenue.
Headquartered in New Delhi, POSist has over 100 employees with offices in Dubai, Mexico, New York, New Delhi, Bengaluru, Mumbai, and Pune. The brand is trusted by over 8,000 restaurants in 20 countries and 100 cities worldwide
The survey was conducted between September 1-15, 2020. Information was collected via online surveys and telephone conversations.
The respondents were across all major states in India covering Delhi, Mumbai, Bengaluru, Chennai, Kolkata, Odisha, Uttar Pradesh, Madhya Pradesh, Rajasthan, and Assam among others.
28 percent were casual dining restaurants; 16 percent were quick-service/fast-casual restaurants; 14 percent were cloud kitchen or delivery outlets; 13 percent were cafes/bakery; 10 percent were fine-dining establishments; 7 percent were bars and breweries; 4 percent were food court chains; 4 percent were restaurant chains and 4 percent were from other formats.
52 percent of respondents owned one location; 29 percent owned 2-10 locations; 19 percent owned 10-99 locations.
Source: Thanks https://www.cnbctv18.com/hospitality/40-dine-in-restaurants-started-delivery-services-post-covid-19-posist-survey-7038851.htm