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DIGITIZING
Restaurant Payments
REPORT
MARCH 2021
FEATURE STORY – PAGE 10
How Machine Learning,
Contactless Payments NEWS AND TRENDS – PAGE 14
Are Helping Piada 71 percent of consumers want restaurants
to continue offering contactless payments,
Italian Street Food Meet ordering methods and menus, even after the
pandemic ends
Shifting Ordering Needs DEEP DIVE – PAGE 20
Restaurants seek to meet diners’ needs and
relieve concerns with self-serve kiosks, QR
code menus and mobile apps
DIGITIZING Restaurant Payments
04 What’s Inside
A look at how the ongoing pandemic has accelerated
the uses of digital ordering and payments at
restaurants and how eateries can help keep pace with
these changes
10
Feature Story
An interview with Matt Harding, senior vice president
of culinary and menu innovation for Piada Italian
Street Food, and Jason Profitt, the restaurant’s
director of technology, on how the Italian fast casual
chain is keeping pace with changing digital ordering
and payment trends
14 News & Trends
Recent headlines from the space, including why digital
restaurant payments may be opening up QR codes’
path to ubiquity and why 59 percent of consumers plan
to continue using mobile third-party delivery apps for
restaurant orders even after the pandemic has eased
20 Deep Dive
An in-depth examination of how restaurants are
adopting digital ordering, menu browsing and payments
technologies to provide swifter and safer on-site dining
and takeout experiences
25 About
Information on PYMNTS.com and American Express
Acknowledgment
The Digitizing Restaurant Payments Report is done in
collaboration with American Express, and PYMNTS
is grateful for the company’s support and insight.
PYMNTS.com retains full editorial control over the
following findings, methodology and data analysis.
W H A T ’ S I N S I D E
he global health crisis rap- online. The monthly average spend for dining
idly accelerated the volume of in person is $205.
diners ordering takeout and deliv-
Developing convenient and seamless digital
ery online and through mobile
payment and ordering capabilities is becoming
apps from their favorite eater-
critical for restaurants of all types, especially
ies rather than risking exposure in person at
as consumers appear to have no plans to
sit-down restaurants. Consumers spent $486
return to their pre-pandemic ordering and
billion on food eaten at home in 2020, and 89
payment behaviors. Another recent PYMNTS
percent of those orders originated from dig-
study found that 87 percent of the consum-
ital channels, according to recent PYMNTS
ers who have moved to online ordering from
data. This includes websites as well as both
restaurants plan to continue ordering online
restaurant-branded and third-party aggregator
once the crisis has passed, indicating digital
mobile apps, such as DoorDash and Uber Eats.
channels may be well on their way to becom-
Enabling digital payments and orders — both ing the primary ways for restaurants to engage
online and in person at restaurant locations — customers and grow their revenues.
is becoming a key factor that will help attract
These developments could provide a key boost
customers who are choosing between restau-
for restaurants, especially as takeout and deliv-
rants. This is especially the case for millennial
ery become more critical to their business
and Generation Z diners, with 61 percent of
operations. One recent report found that 89
these consumers stating that digital pay-
percent of small, independent restaurant own-
ment options were critical when making such
ers are dependent upon takeout orders to stay
decisions, according to one recent study.
afloat, and this dependence is prompting orga-
Fifty-seven percent agreed digital ordering
nizations to roll out initiatives to meet these
capabilities were essential, up from 46 per-
needs. Restaurant technology and back-end
cent in 2019. Consumers in these generations
software provider Resy is working with card
are also spending more when they order digi-
network American Express, for example, on a
tally, as recent PYMNTS data found that bridge
promotion called #TakeoutTuesday, which is
millennials — those between 32 and 41 years
intended to keep operations moving on what is
of age — spend an average of about $279 per
typically the slowest day for eateries.
month ordering from table-service restaurants
© 2021 PYMNTS.com All Rights Reserved | 5
W H A T ’ S I N S I D E
Ensuring that restaurants have access to the percent of diners stating they would continue
digital tools they need to process takeout and to use mobile delivery apps after the crisis has
delivery orders is equally key. Those restau- passed. Restaurants will need to be sure they
rants will need to carefully consider how to can offer these online payment and ordering
go about integrating these tools and how to options to keep these diners satisfied and to
ensure their own brands can stand out from a grow customer loyalty as consumers become
more crowded pack. more familiar with these tools.
AROUND THE DIGITAL RESTAURANT Eateries appear ready to take on this challenge.
PAYMENT WORLD Restaurants surveyed in one recent study
One recent study found that 53 percent of con- stated they expect 62 percent of their 2021
sumers now consider takeout and delivery to revenues to come from takeout and delivery
be “essential” to their current lifestyles, with orders, and they are adjusting their daily oper-
digital channels playing an integral role. Use of ations accordingly. Restaurants are expressing
both curbside pickup and mobile delivery apps more interest not only in consumer-facing
is ramping up, with 46 percent of individuals digital tools but also in technologies that can
now ordering takeout through these methods. smoothly support these features. Ninety per-
Consumers are also expected to cling to cent of eateries have either already invested or
their smartphones in the future, too, with 59 plan to invest in kitchen automation technology,
6 | © 2021 PYMNTS.com All Rights Reserved
W H A T ’ S I N S I D E
for example, allowing them to more efficiently
Industry
fulfill orders as well as collect consumer data
on order and payment preferences. This would
help them successfully compete.
Consumers do not appear ready to go back to
INSIGHT
pre-pandemic dining behaviors, with another
What ordering and payments technologies are proving
report revealing that in-person dining com-
important in helping restaurants serve diners during
fort levels are fluctuating. Comfort levels were the pandemic? What should restaurants keep in mind
at 44 percent at the end of January and rose as they work to adapt their services?
to 51 percent at the end of February, yet only “The pandemic placed an unprecedented burden on
44 percent of consumers stated they would restaurants to find ways to sustain their business …
feel safe dining at restaurants in early March, This included the increased adoption of mobile and
indicating increased wariness. Off-premises web-based ordering for delivery and takeout and [the]
orders have not waned, however. The study adoption of QR codes to safely pull up menus and order-
ing information. Customers quickly adapted to these
found that 80 percent of restaurant traffic now
new trends, and we do not expect a [reversion] back to
takes place outside restaurant locations, such
ordering behavior[s] prior to the pandemic. While we are
as from orders placed via phone calls, through entering a more positive chapter with increasing vacci-
mobile apps or online. This indicates that dig- nation rates, restaurant owners should still continue to
ital ordering channels will continue to play a digitize their operations. Customers are still very aware of
key role in the restaurant industry in the near sanitary and touchless practices, and both will continue
future as consumer trust toward sit-down din- to be important factors in their dining decisions. For this,
restaurant owners should allow and embrace the way
ing slowly returns.
their customers want to pay, including contactless and
For more on these stories and other digi- QR [code] payments. We also expect to see increased
tal restaurant payments headlines, read the adoption amongst restaurant owners in technology that
report’s News and Trends section (p. 14). allows them to automate their kitchen operations for a
more efficient back of house, and the expanded use of
PIADA ITALIAN STREET FOOD ON kiosks and menu-based QR codes to streamline the din-
KEEPING PACE WITH CHANGING ing experience to increase sales volume.”
PAYMENT, ORDERING TRENDS
Restaurants have long employed varied CURTIS WILSON
menu items to appeal to different consumers’ Vice president and general manager of restaurant,
tastes, and the same can be said of offer- travel and entertainment, global merchant and
ing the right variety of ordering channels and network services
American Express
© 2021 PYMNTS.com All Rights Reserved | 7
W H A T ’ S I N S I D E
payment options to help attract customers. DEEP DIVE: HOW THE PANDEMIC PUT
Diners have grown familiar with digital order- ORDERING, PAYMENTS TECHNOLOGY
ON THE MENU
ing after a year of opting to eat at home to
avoid pandemic-related risks, and they are Restaurants have had to redesign their order-
now expecting more options than ever when ing and payments services to keep serving
interacting with their chosen eateries. In this customers safely during the global health crisis,
month’s Feature Story (p. 10), Matt Harding, and digital solutions are playing a key role in
senior vice president of culinary and menu those transformations. Venues have adopted
innovation for Italian fast casual restaurant a variety of technologies, including on-site
chain Piada Italian Street Food, and Jason equipment and mobile tools that enable diners
Profitt, the eatery’s director of technology, to place orders remotely and skip face-to-face
discuss how the pandemic has impacted con- interactions. This month’s Deep Dive (p. 20)
sumers’ ordering and payment wants and examines restaurants’ key technological adop-
needs as well as how the company is using a tions as they work to provide swift, socially
holistic all-in-one system and machine learn- distant purchasing and transaction experi-
ing to help foster more seamless experiences. ences. It also examines how consumers of
various generations are engaging differently
with these revamped ordering methods.
8 | © 2021 PYMNTS.com All Rights Reserved
W H A T ’ S I N S I D E
89%
FIVE
Portion of the $486 billion
in food eaten at home
that consumers ordered
through websites and
mobile apps in 2020 FAST
FACTS
$279 87%
Average amount bridge Share of consumers who
millennials spend each have shifted to ordering
month ordering online from online and plan to continue
table-service restaurants using such services once
the pandemic ends
92% 56%
Portion of top-performing Share of restaurants where
restaurants that offer customers began using
mobile order-ahead apps mobile order-ahead apps
more often that experienced
revenue growth during the
pandemic
©©2021
2021PYMNTS.com
PYMNTS.comAll
AllRights
RightsReserved
Reserved|| 9How Machine Learning,
Contactless Payments Are
Helping Piada Italian Street Food
Meet Shifting Ordering Needs
Restaurants must be creative in how they work Leaning on an all-in-one platform that funnels
to stand out — both in what they offer on their orders to one interface can help restaurants
menus as well as which channels they support process them seamlessly, said Matt Harding,
for food orders. Consumers are flocking even senior vice president of culinary and menu inno-
more to online and mobile tools to find their vation at Italian fast casual restaurant chain
meals in the wake of the pandemic, meaning Piada Italian Street Food. Harding recently
eateries must work swiftly to ensure they can spoke with PYMNTS along with Piada’s direc-
support orders from various platforms to stay tor of technology, Jason Profitt, to explain how
competitive. the chain’s digital ordering features, including
© 2021 PYMNTS.com All Rights Reserved | 11F E A T U R E S T O R Y
its website, branded mobile app and loyalty millennials or younger consumers, Harding
and rewards program, are all collectively man- explained. The closures of brick-and-mortar
aged through Piada One, a holistic system the locations largely made digital ordering a
company developed in-house. Piada, which necessity for all generations, and that digital
has 38 locations in six states, is also looking to convenience is now changing what consum-
integrate new technologies, such as machine ers expect from all channels as in-person
learning (ML), to help analyze collected data dining recovers. This is the impetus behind
and use it for more personalized customer Piada’s examination of contactless payments,
experiences. Profitt said.
“To the ML part of it, that is something that “There are instances where somebody has that
we are going to be pretty heavily investing in little mini panic when they get to the checkout
[during] 2021,” Profitt said. “Now that we have and [go], ‘Oh man, I forgot my wallet,’ but they
everything under our own ecosystem, we have [have] their phone,” he said. “[Those are] really
a lot more of an ability to really leverage the the guests that we are looking [to target] for
data that we already have and act on it in a way [contactless]. … We look at it to be a bit of a
that is going to be more [like] operating with a convenience factor.”
scalpel versus with a chainsaw. … We see that
Piada aims to roll out contactless payments
as something that is going to be a big win for
support later this year, Profitt continued.
us in 2021.”
Restaurants must research which touchless
Effectively applying tools like ML means payment methods will best suit their existing
tracking how consumers are currently order- models as well as which of these tools are
ing or paying as trends keep changing as the currently capturing diners’ interest. Solutions
health crisis continues. This is something that like QR codes are experiencing a resurgence,
is especially crucial currently, as diners are though consumers tend to use them for very
experimenting with a larger variety of contact- particular interactions with their chosen eater-
less payment and ordering tools that are being ies, according to Harding.
introduced to meet demand.
“I think everybody really thought that QR codes
PAYMENTS A LA CARTE were the MySpace of the payment technol-
ogy platform,” Harding said. “But they have
Consumers are utilizing a growing number of
really come back strong in terms of payment
channels to order food, with convenience most
[and] even in terms of menus. How many
often the factor driving the choice. Mobile
ordering is no longer the purview of tech-savvy
12 | © 2021 PYMNTS.com All Rights ReservedF E A T U R E S T O R Y
restaurants do you go to and they have a QR a little fluid and you have to make sure that you
code and [say], ‘Hey, this is our menu.’” have your base work done.”
The eatery’s sister restaurant, Lindey’s, The ability to pivot swiftly to meet these shift-
recently implemented QR codes for orders, he ing needs and frictionlessly fulfill orders is
added, and 25 percent of guests are now using more critical than ever, as digital’s conve-
them when it comes time to pay. QR codes do nience is now both expected and necessary.
not align as well with the fast casual dining Restaurants will have to work quickly and
model implemented by Piada, Harding admit- intelligently to ensure they can stay on top of
ted, where other touchless payment solutions these trends.
like tap and pay or mobile-enabled payments
can help keep lines moving at the necessary
speeds. Tracking consumer payment behav-
iors is only the first step restaurants must take
“ Everybody really
to help drive engagement, however.
thought that QR codes
PLAYING THE LONG GAME
Implementing the ordering tools and payment were the MySpace
technologies to which consumers are now
flocking will be critical to keeping those diners of the payment
invested, but eateries should not assume these
preferences are set in stone, Harding warned. technology. But they
“Consumer wants and preferences are actually
still changing, and you cannot apply previous
have really come back
situations to what the guest is going through
now,” he said. “I think everybody believes that strong in terms of
the guest is going to return very slowly to kind
of a blend of digital and in-person. … The big- payment [and] even in
gest opportunity is to have the technology “
piece, the operational piece, the guest service terms of menus.
piece, … and we all kind of think we know where
that’s going to [be]. … But I think you have to be
© 2021 PYMNTS.com All Rights Reserved | 13N E W S & T R E N D S
Contactless and digital Industry experts argue that digital menus’ pop-
ularity is now pushing QR codes, which were
ordering technologies initially slow to catch on in the U.S., into the
DIGITAL MENUS, CONTACTLESS mainstream. Recent reports indicate that QR
ORDERING PROPEL QR CODES INTO
THE SPOTLIGHT codes, or at least contactless payments, may
well continue to thrive past the pandemic, with
The pandemic has brought digital technologies
one study finding that 40 percent of consum-
into restaurants and accelerated their adop-
ers want to use touchless tools after the crisis
tion by consumers outside of their doors. One
ends. This could have intriguing implications
November 2020 study found that 45 percent
for the future of on-site dining, and restaurants
of consumers now prefer to review menus
should think twice about rolling back digi-
digitally and then pay via their phones rather
tal offerings as consumers begin to venture
than interact with wait staff, for example. Many
back out.
believe this trend will continue in the coming
months, and QR codes are expected to lead
the way.
© 2021 PYMNTS.com All Rights Reserved | 15N E W S & T R E N D S
CONSUMERS EXPRESS PREFERENCE
FOR PANDEMIC-DRIVEN RESTAURANT
71%
INNOVATIONS
Diners are becoming more comfortable using
emerging touchless technologies, and a recent
study indicates that contactless payments
are very likely to play a key role in the restau-
rant industry as time goes on. The report of consumers
found that 71 percent of consumers want their
favored eateries to continue offering contact-
less payments, ordering or digital menus once
want restaurants
the pandemic is over.
to continue
Consumers are also expected to continue to
turn to takeout and delivery over in-person
dining throughout 2021, with 91 percent say-
offering
ing that they want to see restaurants’ offerings
in these areas continue — especially when it contactless
comes to picking up alcohol or meal kits. This
indicates that diners are adjusting quickly to payments.
the way the ongoing pandemic has impacted
typical interactions with restaurants and, more
notably, that they do not expect eateries to
return to pre-pandemic business models.
relax, but one recent study found that con-
Dining and customer sumers still cannot make up their minds about
comfort returning to sit-down restaurants. The report
CONSUMERS CLING TO DIGITAL tracked consumers’ comfort with both indoor
ORDERING AS MANY REMAIN WARY OF and outdoor dining over the first few months
IN-PERSON DINING
of 2021, finding that while 51 percent of diners
Eateries in various states are tentatively stated they would be comfortable returning to
reopening their brick-and-mortar doors to con- restaurants in the last weeks of February 2021,
sumers as spring arrives and capacity limits only 44 percent said the same by early March.
16 | © 2021 PYMNTS.com All Rights ReservedN E W S & T R E N D S
Diners may still be hesitant to visit their favor- REMOTE WORKERS MORE LIKELY TO
ite restaurants in person, but digital orders for ORDER TAKEOUT, DELIVERY THAN
OTHER WORKERS
takeout and delivery remain strong. About 80
percent of restaurant traffic is still occurring Ordering meals to be eaten at home is also
off-site, the study found. more popular with certain consumer demo-
graphics, according to a recent study. Younger
CURBSIDE PICKUP TAKES THE LEAD consumers are much more likely to have
OVER DELIVERY ordered takeout or delivery than older gener-
Takeout and delivery purchases are actually ations, with 59 percent of individuals between
becoming a dietary staple for many individuals, the ages of 18 and 24 claiming they had done
one study showed, with 53 percent of consum- so throughout the pandemic. Consumers who
ers stating these meals were “essential” to how work from home are also more likely to spring
they currently live. Forty-six percent of diners for takeout than those who do not work, and
are now ordering food for takeout or curbside they also make these orders more frequently.
pickup, according to another study, and 34 per- Forty-six percent of diners who were able to
cent are making delivery orders via third-party work remotely and ordered takeout stated they
delivery services, such as DoorDash. Curbside do so at least one to two times weekly,Eater-
pickup’s slight lead may be partly due to con- ies expect 62 percent of 2021 revenue to come
sumers’ distaste for the service and delivery from takeout and delivery orderswhereas 38
fees that come tacked onto mobile orders: 73 percent of those who could not work from
percent of customers state that delivery is too home said the same.
expensive once all the costs are added to the
This shows that digital ordering solutions
order price.
for off-premises dining have not yet become
The former study also found that 59 percent of fully accessible to all consumer groups look-
consumers plan to continue ordering through ing to take advantage of restaurants’ off-site
delivery apps once the crisis has subsided, indi- offerings. Expanding this access could help
cating that consumers’ new mobile purchasing increase restaurants’ revenues and engage
behaviors are here to stay. Determining how to a larger crop of potential customers. Some
stand out on these mobile apps therefore rep- restaurants also are participating in promo-
resents a crucial challenge for restaurants. tional campaigns that encourage customers to
order takeout on what are typically slow sales
days, and these eateries may seek to boost
© 2021 PYMNTS.com All Rights Reserved | 17N E W S & T R E N D S
orders by advertising relevant promotions allowing access to digital menus via QR codes
offered by the card brands they accept. or through URLs to help meet this expectation,
while 61 percent are currently offering con-
Tech innovations and tactless payments in their brick-and-mortar
emerging challenges locations.
RESTAURANTS INVEST IN AUTOMATION Ninety percent of restaurants also stated they
TO HELP FUEL RISE IN TAKEOUT, have either made investments or plan to invest
DELIVERY ORDERS
in kitchen automation technology to speed up
Contactless payments and other digital tools order fulfillment. Implementing automation
may be gaining ubiquity to help support safe on the back end can help eateries more easily
and convenient in-person dining, yet eateries accept and push out orders as well as further
surveyed in one recent report expect the bulk utilize consumer data, such as preferred orders
of their 2021 revenue — 62 percent — to come or payment preferences, for more personal-
from takeout and delivery orders. About half ized customer experiences. Doing so can help
of the restaurants surveyed plan to continue
18 | © 2021 PYMNTS.com All Rights ReservedN E W S & T R E N D S
eateries compete more successfully by engag-
ing consumers and fostering greater loyalty.
PIZZA QSRs LOOK TO MOBILE TO JUMP-
START SLUGGISH SALES
Pizza giants Domino’s and Pizza Hut appear
to be tailoring their customer engagement
strategies to suit consumers’ rising prefer-
ence for digital ordering. Domino’s is looking
to increase its takeout orders for the coming
year, according to recent statements from CEO
Ritch Allison. This follows declining same-store
sales at the chain’s locations for Q4 2020 — a
decline its competitor Pizza Hut shared.
Focusing on optimizing takeout and deliv-
ery can help shore up those losses, but these
quick-service restaurants (QSRs) are fac- over the past year to keep customers invested
ing increased competition. A fall 2020 study and engaged during the pandemic. This
found 27 percent of eateries partnered with includes offering an extension of its mobile
third-party delivery apps such as DoorDash order-ahead services to web users, allowing
to enhance their delivery capabilities, while consumers who may not be ready to sign up for
17 percent developed their own delivery solu- their app to access the same benefits online.
tions in-house. Gaining a competitive edge on
mobile will likely be a top priority and challenge Consumers can also select the option for curb-
for restaurants as the year continues. side pickup when ordering on their phones,
further intertwining these online tools. The
SONIC MAKES MOVES TO BOOST omnichannel crossover of digital payment
CROSS-CHANNEL ENGAGEMENT
offerings can help provide consumers with a
Fast food chain Sonic is also aiming to enhance more connected dining experience by meet-
its online payment capabilities as digital order- ing them where they are and can help fast
ing increasingly becomes the norm among food chains better compete with other brands
consumers. The QSR announced multiple that offer the same mobile or curbside pickup
changes and upgrades to its online offerings features.
© 2021 PYMNTS.com All Rights Reserved | 19D E E P D I V E D E E P D I V E
How Ordering, Payment
Technologies Help Restaurants
Serve Up Safer Experiences
The global health crisis sent restaurants This Deep Dive examines that journey, detailing
scrambling as many business models were how restaurants have turned to technologies
overturned. Gathering diners in the same like self-serve kiosks, QR code-accessible
enclosed spaces where they would be shar- digital menus and mobile order-ahead and pay-
ing air suddenly became dangerous when the ment apps to help meet contactless demands.
airborne virus arrived in the U.S. and quickly
spread. Consumers, employees and restaurant SOCIALLY DISTANT SERVICE
managers became and remain keenly aware of Restaurants have been deploying various
these risks, even as some local governments technologies to offer quick, contactless order-
permit on-site dining to reopen. Continuing ing that can help meet the health and safety
to serve customers during the pandemic has needs of consumers who place orders on-site,
therefore required establishments to upgrade whether for takeaway or sit-down meals. Some
their setups and offer swift, socially distant venues have introduced self-serve kiosks
ordering and payment experiences for both where diners can order, often without need-
pickup and dine-in services to lower contagion ing to interact with wait staff. An October 2020
risks and make diners feel more comfortable. survey of 2,081 U.S. adults found that 44 per-
These considerations have also been key when cent of respondents would like to use kiosks
it comes to payments experiences, as con- at their favorite dining establishments during
sumers want to use their preferred payment their next visits, while even more consum-
methods across all channels. Restaurants ers wanted to use these machines at QSRs.
must therefore be payment-agnostic and sup- Seventy-one percent of diners said they would
port transactions that leverage consumers' rather use self-service kiosks at QSRs than
preferred credit or debit cards, cards on file, engage with staff members during at least
payments made via QR codes and contact- some visits. This may indicate that consumers
less wallets. are most desirous of automated experiences
21 | © 2021 PYMNTS.com All Rights Reserved © 2021 PYMNTS.com All Rights Reserved | 21D E E P D I V E D E E P D I V E
at venues where they are already primed to with shared physical objects. Many full-service
expect minimal interaction with staff. eateries have since deployed alternatives to
physical menus, with 54 percent of casual
Many of the surveyed consumers were also
dining, 48 percent of family dining and 50 per-
eager to use their phones to browse menus,
cent of fine dining establishments saying they
order and pay instead of engaging with wait-
had launched QR code menus, according to a
staff. Forty-five percent of respondents
survey of 6,000 restaurant owners and oper-
expressed interest in such mobile offerings,
ators that was conducted in November 2020
and these purchasing habits may prove to
and December 2020.
be long-lasting, with 40 percent of that seg-
ment saying they would like to keep using Venues are also sensitive to how consumers
these methods even after the crisis ends. want to pay for these orders, and 40 percent
Restaurants must take special note of this of restaurant operators said that they had
trend as consumers become more discerning adopted contactless or mobile payments after
in regard to their chosen payment methods. March 2020. Customers appear responsive
Catering to diners who prefer to pay using to these offerings, as a separate 2020 survey
cards with incremental fees as well as those found that 43 percent of consumer respon-
who have turned to mobile wallets, for exam- dents would like to use contactless payments
ple, will be important for eateries. at checkout. Other diners wanted to avoid
going inside entirely, with 40 percent prefer-
VIRTUAL BROWSING AND PAYMENT ring to place mobile orders while remaining in
Restaurants have doubled down on virtual their cars outside the eateries and 38 percent
menus during the past year and have taken favoring curbside pickup options. Solutions
approaches such as posting QR codes that like these can all help restaurants satisfy din-
visitors can scan with their phones to pull ers’ cravings while minimizing the chances of
up meal options. This move can enable cus- viral exposure.
tomers to view menus before entering the
locations so they can get in and out more REMOTE ORDER AND DELIVERY
quickly. Touch-free options like these may also Many customers prefer to avoid tableside
have been at least partially inspired by fears service during the pandemic, and pickup and
that spread early last year over the possibil- delivery have seen striking growth as a result.
ity of the virus being transmitted via contact Online ordering and delivery accounted for 39
22 | © 2021 PYMNTS.com All Rights Reserved © 2021 PYMNTS.com All Rights Reserved | 22D E E P D I V E
Figure I: Features that distinguish top, middle and Top
bottom performers Middle
Bottom
Ability to pick up orders
without standing in line Ability to pick up orders at the drive-thru
88.9% 8900000000
56.5% 5700000000
70.8% 7100000000
33.1% 3300000000
41.8% 4200000000 16.3% 1600000000
Ability to pay in-store with
Ability to order using a mobile app contactless cards
91.7% 9200000000
46.3% 4600000000
69.7% 7000000000
23.6% 2400000000
30.6% 3100000000 26.5% 2700000000
Loyalty or rewards program Ability to pay online
91.7% 9200000000
57.4% 5700000000
65.1% 6500000000
22.2% 2200000000
21.4% 2100000000 7.1% 0700000000
Ability to order using self-service kiosks
Ability to pay with digital wallets at the restaurant
82.4% 8200000000
32.4% 3200000000
56.0% 5600000000
22.2% 2200000000
23.5% 2400000000 14.3% 1400000000
Ability to pick up orders curbside Ability to pay with QR codes
90.7% 9100000000
27.8% 2800000000
52.8% 5300000000
16.9% 1700000000
23.5% 2400000000 12.2% 1200000000
Ability to order online Ability to pay with card on file
88.9% 4700000000
30.6% 3100000000
48.2% 3200000000
10.2% 1000000000
9.2% 2000000000 6.1% 0600000000
percent of restaurant franchises’ sales in 2020 A December 2020 PYMNTS survey of 490
and just 20 percent in 2019. Franchisees have restaurants also found that while 60 percent
taken note, and 69 percent planned to invest in had taken revenue hits during the pandemic,
mobile ordering in 2021 — a far cry from the 25 digital tools could help soften the blow or
percent that had intended to do the same for even increase revenue. Ninety-two percent of
2020, reflecting just how significantly the pan- restaurants deemed “top performers” gave
demic has changed industry outlooks. customers mobile order-ahead options, for
© 2021 PYMNTS.com All Rights Reserved | 23D E E P D I V E
example. Similarly, 56 percent of eateries where boomers. These younger diners were also
customers began using mobile order-ahead particularly likely to use third-party delivery
offerings more often said their revenues grew services to get their meals, with 63 percent of
during the pandemic. Top-performing restau- Gen Z and 60 percent of millennial consumers
rants are also ahead of the curve in offering using such options during the past six months,
more opportunities for consumers to pay along with only 19 percent of baby boomers.
using their preferred methods. More than 30
Health concerns have made serving custom-
percent of these eateries enable consumers to
ers challenging, leading many restaurants to
pay using cards on file, for example, whereas
turn to ordering and payment technologies to
just 10 percent and 6 percent of middle- and
help them meet demands for both safety and
bottom-performing restaurants say the same,
convenience to deliver rapid, compelling ser-
respectively.
vices. Diners who become accustomed to the
Offerings enabling digital ordering for pickup speed and seamlessness of ordering apps
or delivery are especially likely to appeal and other tools are likely to want to keep using
to younger generations. A December 2020 them well after the pandemic has ended, mak-
survey of 1,000 adults found that 90 percent of ing it all the more important for restaurants to
Generation Z and 85 percent of millennial con- develop strong digital strategies now.
sumers had ordered food delivery witvhin the
past six months, as did just 58 percent of baby
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