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The Worldpay Customer 2017 – 2018 Experience Report 2018 Insights into UK behavioural trends for bars and restaurants
Meet the UK’s diners Contents In September 2017, we surveyed 2,500 UK consumers to understand their behaviour towards ‘eating out’ and to examine their changing expectations. We’ve split out the findings by age range to highlight the interesting differences between each generation’s dining habits. 04 Introduction Gen Z (16–20) Gen Y (21–34) 06 360� view Gen X (35–50) Boomers (51–69) 18 Fear of friction 24 Hyper convenience 32 Rational loyalty 38 Key takeaways 39 About Worldpay 2 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 3
Introduction Three influences driving consumer behaviour in food and beverage Welcome to Worldpay’s UK Our research has highlighted three core trends that underpin the behavioural traits of the UK’s consumer when it comes customer experience report to eating out. This report examines these three trends in-depth, for bars and restaurants giving a complete overview to build a picture of UK diners’ behaviour and motivations in 2017. Our research explores customer experience within In hyper convenience, we look at how technology the food and beverage sector and takes a deeper can enhance the customer experience and how look at attitudes and behaviour towards eating diners feel about the use of technology in dining Fear of friction out in the UK. What are consumers looking for environments. Finally, rational loyalty covers value Time is of the essence for today’s diners. They don’t want anything from a dining experience? And what are the driving and rewards, and how the behaviour differs between to slow their experience down, and expect prompt, efficient service forces behind their behaviour? the various age groups. when they’re dining out. It’s not that they want to be rushed through The first part of the report covers a 360° view of The findings show that the younger generations their meal, they just get frustrated waiting for a table or for the bill current trends and attitudes towards dining out in have had their heads turned by innovative retail to come. For businesses, it’s about removing these points of friction the UK. Then we’ll explore what we feel are the three and technology brands. They expect the same in the customer experience, so that it doesn’t impact the overall key influences driving consumer behaviour in food level of service and the same seamless technology perception of your brand. and beverage. Starting with fear of friction, we look to ensure that their experience is convenient, at the obstacles and frustrations today’s diners face personalised and friction free. Hyper convenience when it comes to service and payment. I hope you enjoy these insights... Order ahead. Apps that know your favourite order. Consumers expect far more personalisation and convenience than they did before. They want a seamless experience for the entire customer journey, from booking to payment. In hospitality, there’s much more innovation in the pipeline, but brands should already be embracing technology’s possibilities in order to create a better customer experience. Rational loyalty Price-conscious UK consumers are heavily influenced by discounts and offers. Many want to be part of a reward scheme, and those that James Frost already are say it’s worth it. But this rational loyalty only gets brands Chief Marketing Officer so far. Emotional loyalty is a bigger challenge for hospitality brands. — Worldpay UK How can you advance from regular orders, to building an entire experience that meets the highest expectations of your customers? 4 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 5
360� view 1 In this chapter we will explore the behavioural characteristics of UK consumers, and how they feel about their dining experiences. How do they book? What do they enjoy most about eating out? We’ll compare the differences in attitudes and preferences across the age groups to highlight how consumer expectations are evolving. 6 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 7
How much do we like eating out? How often are we eating out? Unsurprisingly, eating out is a top choice for Interestingly, it’s those in Gen Z that find it The vast majority of consumers (79%) had eaten Most of our consumers (63%) prefer eating out for UK consumers, particularly for older people, with hardest to choose where to eat, with 30% finding out in the past 7 days, rising to 85% for Gen Y dinner than other meals, and weekend dining is a 76% of Boomers (51–69) saying that it’s one of selection difficult. (21–34). Men eat out more often than women, favourite with everyone apart from Boomers (51–69), their favourite activities, compared to only 45% with 17% of them eating out a few times a week, who prefer to eat out midweek (53%) rather of Gen Z (16–20). compared to just 11% of women. than weekends (45%). How do we feel about eating out? How often do consumers dine out in an average month? It’s one of my favourite activities 56% 14% 29% 33% 24% I find it hard to choose where to go 24% A few times At least once Couple of times Once a a week a week a month month I eat out when I haven’t got any food in the house 11% Favourite time of day And preferred time to eat out? of the week? I find it a bit of a hassle 9% Breakfast Lunch Dinner Weekends Midweek Start of the week 6% 31% 63% 54% 38% 8% 8 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 9
‘Date night’ is a popular reason 54% of people say they are eating for dining out out more Women are more likely than men to dine out with (45% male vs 37% female) or on their own (4% male It’s cash-rich and time-poor consumers driving the Unsurprisingly, it’s the younger Gen Z (16–20) family (40% female vs 32% male) and friends (21% vs 1% female). Gen Z (16–20) are more likely to eat trend towards eating out more—they have more to and Y (21–34) that say they don’t have time to cook female vs 15% male). Men, on the other hand, out with family (46%) and friends (26%) than the spend (36%), and less time to cook at home (12%). and therefore need to eat out, while only 3% of are more likely to dine out with spouse/partner other age categories. Boomers (51–69) and 7% of Gen X (35–50) make the same claim. Who do consumers dine out with most often? How much time is spent on the meal? So why is this? I have more disposable income 36% Spouse/Partner 41% Less than 30 mins I’m taking advantage of discounts/coupons 4% 25% Family 36% There are more affordable options 18% 30 mins –1 hour 36% 18% I don’t have time to cook at home as much Friends 12% I like the better quality of food 1–2 hours 9% Colleagues 2% 52% Alone 2% +2 hours 14% of busy Londoners spend less than 30 minutes 8% eating out, making them the fastest in the UK. 10 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 11
Eating out is a sociable adventure Who books ahead? And who prefers to risk it? It’s quite clear from our consumers that it’s the It’s also the anticipation of trying new food that’s We asked if people were table bookers, or turner- In London, consumers are far more likely to book social element that makes eating out so pleasurable, exciting—the adventurous aspect of dining uppers. 40% of people plan ahead and reserve their in advance (51%) than other areas in the UK. with the majority (64%) enjoying being with friends shouldn’t be underestimated. table, but most (60%) don’t mind walking in without For example, in Wales only 26% make a table and family. a booking. booking, with the rest turning up on a whim. Calling directly is still the preferred way to book a table, followed by directly booking online. What makes eating out fun and exciting? Socialising with friends or family 64% 60% 40% Trying new food/menus 60% The atmosphere of the venue 45% Are walk-ins Like to book a table Discovering new cuisines 22% Howdodothey How they usually usually book?book? I don’t find it fun or exciting 2% 54% 57% call calldirectly directly 38% via their website 38% 4% viavia 3rd party their system website 1% via email 4% via 3rd party system 1% via email 12 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 13
Cash or card? When it comes to the bill, men are the bigger spenders As expected, consumers are increasingly paying by Surprisingly, even the older age groups are more Most consumers are dining out on a budget Similarly, a big-spending 6% of men pay more than card, as the move to a cashless society continues. likely to pay by card than cash, with 63% of Boomers of £10-20 (53%). That said, men spend more than £50 for their meal out, compared to 4% of women. (51-69) using plastic to pay their bill. women overall, with 38% handing over £21-49 typically, compared to just 31% of women. When dining out with friends, how do consumers prefer to pay? What are we spending on average? 45% 55% Men Women Cash Card 38% 31% £21–£49 £21–£49 53% of consumers spend between £10–£20 on food and drink when eating out. 14 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 15
When and where the generations eat out Who eats out Who eats out at at the cinema? sports events? Gen Z Gen Z Younger generations are much more likely 78% 46% to combine eating out with other leisure Gen Y Gen Y activities because, for them, it’s a socially 79% 62% driven experience. This offers an opportunity Gen X Gen X for potential partnerships between 62% 52% restaurants, bars and other venues to offer Boomers Boomers greater value to customers. 37% 36% Interestingly, Gen Z (16-20) are much more likely to eat out when going to the cinema or shopping than they are when attending Who eats out a sporting event. while shopping with friends? Gen Z 79% Generation Ranges Gen Y Gen Z 77% (16–20) Gen Y Gen X (21–34) 68% Gen X (35–50) Boomers Boomers 51% (51–69) 16 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 17
Fear of friction 2 Today’s consumers are used to instant gratification and expect a frictionless experience when they eat out. That means speed and convenience are paramount, particularly when it comes to service. 18 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 19
Impatient customers How often are they frustrated waiting for their bill? We’ve all been there. Meal ordered, but no food in when eating out. This rises to around 1 in 4 amongst When it comes to waiting for the bill, 21% are often of consumers who selected very often, with 7% sight. How long is it going to take? You’re not alone: Gen Z and Y (16–34). Clearly the younger generation or very often frustrated by how long it takes. compared to 5%. Again, Gen Y are particularly 1 in 5 consumers feel that they are often, or very are less patient than their elders. This is similar to the frustration of waiting for food, frustrated by waiting to get the bill, with 29% often frustrated by waiting for their food to arrive but in this case there is a higher percentage often or very often frustrated. How often are consumers frustrated waiting for their food? 22% 30% 27% 14% 7% Never Rarely Sometimes Often Very often 11% 32% 36% 16% 5% Never Rarely Sometimes Often Very often ...or the card machine? Finally, waiting for the card machine is frustrating 5%—it clearly shows the generation gap between to 15% of consumers. But what’s interesting is the Millennials and Boomers when it comes to waiting Gen Y (21–34) category, where that rises to 25%. to pay. If you compare that to Boomers (51–69) at just 31% 30% 23% 10% 5% Never Rarely Sometimes Often Very often 20 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 21
Faster service, When dining out, how do you find the speed of service? happier customers 21+79 Generally, UK diners said that service is “fast enough”, which is fine, if a little uninspiring. What will be worrying to hospitality businesses is the fact that 1 in 4 find the speed of service slow or really slow, including 30% of Gen Z and Y (16–34). And in impatient 5% 21% London, that percentage rises to 40%. Really slow Quite slow 68+32 In fact, only 6% of consumers find that service is generally quick and efficient. That creates an opportunity for savvy brands to differentiate their service by speeding it up. In fact, many hospitality businesses are already looking at how they can use technology to improve service, from self- serve apps to slicker Electronic Point Of Sale 68% 6% (EPOS) software that maximises efficiency Fast enough Quick and efficient and creates happier customers. 1 in 3 Gen Z and Y (16–34) think service is slow or really slow. 22 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 23
Hyper convenience As well as wanting instant 3 gratification, today’s consumers are used to expediency and personalisation. They can get TV on demand, listen to playlists designed around their musical tastes, and order their usual grocery items in seconds. This environment has created an expectation of convenience and seamlessness, an expectation that continues when they eat out in restaurants or drink in pubs. 24 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 25
Better technology, simplified service When it comes to apps, personalisation matters It’s clear that consumers are willing to adopt Younger age groups in particular, would be happy For forward-thinking hospitality brands who have A feature allowing users to store a favourite meal is technology that can make their dining experience to order ahead of time, to speed up service once their own native app, here’s some food for thought. also valued, particularly among Gen Z and Y (16–34). more convenient. they arrive at their destination. According to consumers, the most important But for Boomers, the results flipped the other way. feature of an app is not discounts or savings, The most important aspect of an app for them is but personalisation. Consumers want to be able access to relevant discounts. Who is interested in placing their order online, to tailor orders to get exactly what they want, and expect technology to make that easy. ahead of travelling to a restaurant or bar? In an app, what personalisation would consumers like to see? 67% 68% 33% 24% Tailor my order Store my or amend ingredients favourite meal Gen Z (16–20) Gen Y (21–34) 23% 20% Access relevant Pay using my stored discounts payment details OR DE R 26 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 27
Gamification could be the key Let’s take the maths out of tipping to winning consumers Gamification—for example, an app-based game Our research has uncovered a real appetite for 57% of consumers are carrying less cash than they This saves them the effort of having to calculate allowing you to spin a wheel to win free meals or game-based loyalty that makes eating out more used to, with many not carrying any cash at all. an actual tip amount. This is even more appealing discounts—is an interesting idea for hospitality playful and memorable. In fact, 78% of consumers So it’s essential that restaurants and bars allow to 16–20 year olds (62%), 21–34 year olds (66%), brands, and it’s one you don’t see much in practice. would use an app that involved a game that could customers to tip straight from the card machine. and Londoners (70%). win them rewards, rising to 86% of Gen Z (16–20), To make it even easier, most diners (56%) want to be and a huge 90% of Gen Y (21–34). able to tip a fixed percentage—10%, for example— straight from the card machine. Would you be interested in a restaurant loyalty Would you want to be able to tip a fixed % app that included a reward-based game? of your bill straight from the card machine? 78% 22% 56% 44% Yes sounds fun Not interested Yes No Over 60% of Gen Z and Y (16–34) 90% of Gen Y (21–34) would want to be able to tip directly use a gamified loyalty app. on the card machine. 28 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 29
Faster technology means speedier billing Making tabs safer for everyone Half of consumers (49%) normally experience their But when you think that 67% of our consumers don’t Setting up a tab is commonplace for almost half In fact, many of our younger consumers have servers going back and forth to the till system for like waiting more than 5 minutes to pay, all this to-ing (46%) of our consumers, with many relying on bar previously been a victim of fraud after leaving their the bill and/or card machine while they wait to and fro-ing takes up valuable time. When it comes staff trusting them to settle up at the end. However, card behind the bar. New technology—such as pay and leave. to payment, consumers just want to settle up and a large proportion of consumers (38%) still leave tokenisation—can help protect against the risk leave, and they expect technology to enable this. their card behind the bar while they eat and drink— of fraud on either end. which of course, is quite risky for both businesses and diners. How long would you be happy to wait to pay in a pub or restaurant? How is your tab usually done? 44% 18% 38% They know me so they They take the deposit I leave my card behind the bar 3% 19% 45% 28% 5% trust that I will pay from my card and settle up at the end Less than 1 minute 1–3 minutes Up to 5 minutes 5–10 minutes 10+ minutes 68% of Gen Z (16–20) and 39% of Gen Y (21–34) have experienced fraud when leaving their card behind the bar. 30 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 31
Rational loyalty 4 UK diners like offers. They like getting value for money. So when they’re wondering where to eat tonight, discounts and rewards can play a big part in their decision process. But how much do they value rewards? And how does consumer behaviour around rewards differ between the four generations? 32 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 33
Who are the most loyal diners? Happy app-ing Most consumers (78%) would be happy to download Overall, most consumers (68%) love finding an app for their favourite restaurant or pub if it meant they can access rewards. This is even higher new places to eat. But true to the stereotype, for 21–34 year olds (87%) and 35–50 year olds (83%). as you get older you are more likely to settle for places you know when you eat out. 41% of Customers happy to download a Boomers (51–69) prefer to eat at their regular restaurant app to access rewards locations, and are much more likely to repeat visits to places they know. In contrast, 75% of Gen Y (21–34) prefer to try new places when they eat out. 87% 83% Gen Y Gen X (21–34) (35–50) Three quarters of Gen Y (21–34) Over 80% of Gen Y and X prefer discovering new places (21–50) would like to access to eat instead of returning to dining out rewards through familiar options. their smartphones. 34 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 35
Loyalty apps reward younger consumers How often do you take advantage of promotions at restaurants and bars? Younger consumers frequently take advantage These younger consumers are not loyal, so to get of promotions and offers. And they’re very happy them to keep coming back to your brand, your app Most of the time Often to access rewards via an app, so for brands should be designed to reward repeat visits via offers targeting a younger audience, loyalty-boosting and discounts. apps make sense. Gen Z Gen Z 27% 37% Gen Y Gen Y 1 in 4 26% 40% UK consumers eat out more because of discounts and coupons. Gen X Gen X 20% 37% Boomers Boomers 9% 21% Apps enable more than just loyalty A big chunk of UK consumers (38%) are part of a pub With 83% of consumers already finding their loyalty or restaurant loyalty scheme, with 1 in 4 eating out membership rewarding, they could also be using more because of discounts and coupons. Bargain- their restaurant apps to book, order and pay. Occasionally Almost never hungry Brits give businesses a great opportunity. Brands should look at how they can use technology Gen Z Gen Z However, a good loyalty scheme isn’t about to reduce the fear of friction, facilitate hyper giving stuff away, it’s about creating a positive convenience, and deliver value and rewards. 28% 8% emotional experience. Gen Y Gen Y 26% 8% Gen X Gen X 33% 10% Boomers Boomers 49% 21% 36 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 37
Key takeaways About Worldpay 1 3 Worldpay is one of the world’s leading payment UK consumers are eating out more; Technology gives businesses the chance it’s become an established part of to speed up service, boost loyalty and providers. Driven by technology, our products and everyday life, and a key leisure activity improve the overall customer experience. services are used by over 400,000 customers around for all ages. In an increasingly time-poor Whether it’s apps that reward customers the globe, allowing them to accept more than 300 society, most people eat out at least once just for playing games, or features that a week, so there’s a huge opportunity for make tipping easier to calculate, it’s time different payment types from 146 countries and 126 the right hospitality business to succeed. to embrace the possibilities. currencies. Worldpay helps food and beverage businesses to simplify payments by bringing together Point of Sale, 2 4 People are now used to an instant We’ve been comparing how dining out gratification, on-demand lifestyle, behaviour differs between generations. integrated payments, ecommerce, and acquiring and that includes when they eat out. In broad strokes, the younger you are, the into one complete service. Our hospitality solution, Today’s diners can be too impatient to less time you want to spend and the more Worldpay Total, is the complete payment package enjoy waiting a long time for their food new places you’ll try. Older consumers for service-led businesses, with innovative features or their bill, so restaurants need to pick know what they like, so they’re more loyal, designed around the payment needs of your customers, up the pace. but also more price-conscious. giving them the efficient, flexible service they expect. Find out more at: www.worldpay.com/uk/larger-businesses Research for this report was completed in September 2017 with 2,515 consumers surveyed on behalf of Worldpay by Research Now Limited. 38 The Worldpay Customer Experience Report 2018 Insights into UK behavioural trends for bars and restaurants 39
Payments, simplified. Visit: worldpay.com/uk/larger-businesses Call us: 0808 301 9517 © Worldpay 2018. All rights reserved. This document and its content are proprietary to Worldpay and may not be reproduced, published or resold. The information is provided on an “as is” basis for information purposes only. Worldpay makes no warranties of any kind in relation to the content. Terms and conditions apply to all services. Worldpay (UK) Limited (Company No. 07316500 / FCA No. 530923), Worldpay Limited (Company No. 03424752 / FCA No. 504504), Worldpay AP Limited (Company No. 05593466 / FCA No. 502597). Registered Office: The Walbrook Building, 25 Walbrook, London EC4N 8AF and authorised by the Financial Conduct Authority under the Payment Service Regulations 2009 for the provision of payment services. Worldpay (UK) Limited is authorised and regulated by the Financial Conduct Authority for consumer credit activities. Worldpay B.V. (WPBV) has its registered office in Amsterdam, the Netherlands (Handelsregister KvK no. 60494344). WPBV holds a licence from and is included in the register kept by De Nederlandsche Bank, which registration can be consulted through www.dnb.nl. Worldpay, the logo and any associated brand names are all trademarks of the Worldpay group of companies.
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