Covid impacted virtually every consumer sector to some degree, but few industries embraced technology with the gusto of the restaurant industry. Today, a recent PYMTS/Paytronix study reveals, 31% of restaurants get 50% of their revenue online.
Whether it was diving into untested waters with contactless delivery, trying in-person alternatives like QR-linked menus, or investing in in-house online ordering platforms, restaurants survived and thrived by becoming more agile and tech-savvy.
A new report compiled by PYMNTS and Paytronix, “The Restaurant Readiness Index 2022 Edition,” digs into the lingering impact of Covid-era digital initiatives taken by more than 500 restaurants. Which digitization techniques rewarded owners with the highest yields? Going forward, how can digitization solve various logistical problems?
According to the report, over 50% of restaurants are at least moderately digital, even taking into account the return to on-premises dining as Covid restrictions have been lifted. Key findings include:
31% are digital-powered and generate 50% or more of total sales through digital channels
22% are moderately digital, generating 25-50% of sales through digital channels
Most digital-powered restaurants fit into the chain QSR category, followed by independent QSRs and chain table-service restaurants
Only 13% of independent table-service restaurants are digital-powered
Digitization can solve staffing issues.
As consumer demand has increased since Covid, restaurants across all segments are facing issues attracting and retaining staff. The Restaurant Readiness survey revealed that 76% of consumers consider staff stability as critical. Managers agree:
76% said staff stability is a necessity for their businesses to succeed.
90% of “slightly digital” restaurants cited staff stability as a necessity.
Unfortunately, nearly 50% of managers said they have encountered obstacles hiring or retaining staff, with digital-powered restaurants stating that they are more likely to suffer challenges with retaining staff versus hiring. Staffing shortages directly impacted key restaurant success metrics among respondents:
32% of respondents said their level of service had decreased
31% said wait staff has had to cover more tables per employee
29% said they have been unable to open as many tables as they could with more employees
19% have had to turn away customers
To combat staffing issues:
56% offered higher wages
28% adopted tech solutions focused on minimizing issues related to staff shortages
18% have adopted tech that makes restaurant duties easier
13% have adopted tech that allows customers to help themselves
One key solution, the report revealed, was mobile order-ahead technology, which directly impacts a restaurant’s reliance on staffers. Technology improvements across duties like tracking inventory and costs, loyalty program automation, and in-store kiosks reduce various staff burdens, freeing up employees to focus more on soft skills like improving customer experience.
Onosys links restaurant partners with powerful tech that streamlines operations.
The Onosys in-house ordering platform helps restaurant owners make better use of their employees’ talents while delivering deep, big picture data insights into customer behavior, sales cycles, and inventory usage — information that can be put to use to immediately cut costs and improve ROI.
Two years after Covid first impacted the service industry, it is clear that the digitization of the restaurant industry is here to stay.
In stark contrast to third-party delivery partners, Onosys empowers owners to steer their businesses toward the best tech approach for their specific restaurant in their specific market — free from the high cost of doing business with companies less motivated to foster customer loyalty with the people who enjoy a restaurant’s food.