Restaurant Industry Sees Decline in Customers Who Order Online

If high global food prices weren’t enough, the restaurant industry is seeing fewer online orders too.

By the Numbers

PYMNTS’ new study “How The World Does Digital: Different Paths to Digital Transformation,” which drew from a survey of more than 30,000 individuals across 11 countries, found that the use of digital tools for restaurant dining is on the decline.

Specifically, the restaurant sector’s ConnectedEconomy Index (CE Index) score fell from 26.7 in the second quarter of the year to 26.4 in the third quarter. Additionally, the study noted a 2.1% drop in transactional activity, marking a decline in engagement with restaurants’ websites and apps.

The Data in Action

Restaurants are trying to use the marketing tools at their disposal to drive engagement back up, but brands are split on what the most effective strategy is.

While some brands are pulling back their rewards to avoid further diminishing their margins on top of the price increases they are already forced to absorb to remain competitive, other brands have chosen to step them up to avoid further trade down to at-home food options.

Regarding the former, casual dining chain Red Robin announced Tuesday (Dec. 20) that it is making its birthday burger giveaway available for dine-in-only, removing the ability to redeem it via off-premise channels, and that it is instating a minimum purchase value ($4.99) to get the perk.

On the flip side, other brands see the need to get more generous with rewards right now to maintain consumers’ loyalty in the face of increased competition from the grocery sector.

“With some of the macroeconomic trends ahead, I think it would make sense if rewards programs started to become more generous, and more restaurants are participating in them,” Or’el Anbar, director of analytics at fast-casual chain Just Salad, told PYMNTS in an interview.