In our white paper, “Why verified customer reviews are essential for restaurants,” we discuss how legitimate online customer reviews can help to generate a positive online presence for restaurants.

Topics include:

• Understanding the different review platforms
• Combating fake reviews
• Leveraging Rewards Network’s platform to obtain verified reviews
• Analyzing review completion rates between Rewards Network’s members vs. non-members

Download this free white paper to discover why verified customer reviews are a crucial brand building block for restaurants. 

*Statistics are cited within white paper

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We recently surveyed our members and received over 1,700 responses, to uncover their expected dining activity during this spring/summer and what they expect from restaurants. Below, you can read about what they have to say and see how consumer sentiment compares to a similar survey we ran near the end of 2020.

Your guests are hungry to dine out

Let’s start off with the best news: 83% of our survey respondents said they would be dining out regularly. That is up from 75% from our previous survey where respondents who said they would “never or rarely” be dining out positively fell from 7% to 2%. The biggest indicator of changing dining frequency is that 43% of respondents said they would be dining out more frequently than in 2019 to release their pent-up demand. And while only 14% of respondents said they would be dining out less (compared to 48% in our last survey), their main reasoning was from fear of catching/spreading the virus.

What it means for restaurant owners

Clearly, people are ready to dine out again now, more than ever, as warm weather hits us, vaccinations become widespread, and indoor restlessness hits an all-time high. Restaurant operators will need to pay attention to what their guests are saying and better understand how their preferences have changed to attract their business.

Safety first…still

Although consumers are a bit more relaxed about COVID compared to last year, 58% of respondents said that it’s still very important for restaurants to practice strict COVID-19 safety precautions, with only 16% saying it was not important.

We also asked our members which restaurant safety precautions are most important to them when dining out. The answers largely followed the same pattern as our last survey. Consumers expect frequent sanitation of surfaces, socially distanced tables, restaurant staff wearing PPE, and availability of outdoor seating. For restaurants that take the proper precautions, 82% of respondents say they feel comfortable eating in their dining rooms, with only a fraction still feeling very uncomfortable.

What it means for restaurant owners

Restaurant owners will have to treat safety precautions as a prerequisite for the foreseeable future, as this will be a baseline needed to attract hungry crowds. While the basics should work here as virus fears continue to subside with positive news, restaurants should still consider going above and beyond with touchless menus and bathrooms, since the pandemic has turned many people into semi-germaphobes.

What sounds good tonight?

Although many restaurants unfortunately did not survive the pandemic, consumers still have plenty of choices of where to eat. With safety being the foundation for their dining choice, there are other factors that influence the decision.

We asked our survey-takers what most influences their dining out decision. In our previous 2020 survey, the overwhelming influence was the restaurant that has the highest degree of cleanliness. While that was still a popular answer in this survey, it was not the top selection. The most influential factor was if it’s a favorite restaurant of theirs. Furthermore, the top write-in answer from respondents who chose “other” was that it was a restaurant that had great food and service, joining “favorite restaurant” and “high degree of cleanliness” at the peak was restaurants at which they can earn rewards.

This is not surprising, as consumers increasingly expect rewards programs for many types of purchases, dining being no different. In fact, nearly half of respondents said that earning rewards at a restaurant is even more important now than pre-pandemic, with nearly the other half saying it was just as important, and only 5% saying it was less important.

What it means for restaurant owners

While this data is helpful to steer restaurants in the right direction, every community is different. Owners need to listen to their guests and find out what will keep them coming back. Over the last year, experiences have been lacking for consumers, so most of them are just looking for a restaurant with good food, atmosphere, and service that they feel safe dining at. And clearly, restaurants that offer some type of incentive to visit are most likely to gain loyal, repeat customers. That means they should find out what is important to their guests and potential patrons or consider partnering with a company like Rewards Network that has loyalty programs already set up with more than 20 of the world’s biggest loyalty brands.

Takeout and delivery are here to stay

Takeout and delivery have been a lifeline for many restaurants as they adapted to the pandemic. Although it may not be as profitable for most establishments, it has been a critical revenue source to keep the lights on. Many restaurants have even gone above and beyond to launch their own delivery service to squeeze more money out of the bottom line.

We asked our survey-takers how often they plan to order takeout/delivery compared to before the pandemic. While nearly half said the same as usual, 37% said they would be ordering out even more than before COVID hit.

So, what about the 13% that said they would be ordering takeout/delivery less? That isn’t an insignificant number, but the good news is that two-thirds of these respondents said the reason they would be ordering-in less often is because they plan to dine out more.

What it means for restaurant owners

Consumers seem eager to dine out more and order out more, perhaps speaking to their pent-up demand for good eats that go beyond their personal culinary skills they have tolerated for the past year.

Restaurant operators will still want to consider offering multiple ways for consumers to experience their establishments: dine-in, takeout, and delivery. Since dine-in customers are usually more valuable to a restaurant, they can use takeout/delivery to gain new customers and entice them to dine in.

Restaurant operators should also continue to find efficiencies in their delivery offerings by considering starting their own in-house delivery service, or by partnering with a third-party that helps them operate that side of the business profitably. Rewards Network has a takeout/delivery program that restaurants should take a look at, where they are charged a 10% flat fee plus processing for online orders through loyalty dining sites and select search engine results.

Incentivize your guests

We asked how important it is for survey-takers to receive reward incentives for dining out compared to earlier in the pandemic. 47% said it was even more important compared to before, with nearly half saying it carried the same importance as before. Looking at a different consumer survey we conducted in May, we found respondents overwhelmingly said that receiving incentives was more important or just as important as before the pandemic. When correlating these responses between surveys, it seems that being incentivized to dine is showing increasing importance among consumers as the pandemic goes on, with little signs of dissipating.

What it means for restaurants

Earning rewards for dining or takeout/delivery experiences is becoming even more important to consumers. Restaurants should make sure they are offering some kind of loyalty program or partnering with a third-party, especially as the grip on wallets has tightened. Be sure to continue marketing to your guests to remind them of the awards they can receive by revisiting your establishment or the special promotions you are offering. Encourage them to review your restaurant post-purchase on the platform of their choice, as this will not only grow their affinity with your restaurant, but also encourage visits from others.

Conclusion

Restaurants are not completely out of the woods yet, especially with additional challenges like staff hiring, but consumers are looking to come back to restaurants with a vengeance. Restaurant owners will largely want to do more of the same: offer great food, exceptional service, loyalty incentives, purchase options, and a safe environment expected by today’s restaurant-goer. Those that do it best and continue to adapt to the inevitably changing landscape will rise above the rest today and in the future.

Looking to boost your dine-in traffic and takeout/delivery orders? Let us know and we can tell you exactly how we can help you do it.

We conducted this survey of Rewards Network partner members for approximately one week in May of 2021. All of the information contained in this article summarizing the survey results is provided for informational purposes only and should not be construed as providing tax, legal, accounting, career, or other professional advice.

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In the whirlwind that was last year, we saw takeout save the day, the morning meal rush decline as workers stayed home, and outdoor dining spaces become fixtures—even during the coldest months. As the industry finds its footing, we’re all looking forward to the day when things get back to “normal,” even as we recognize that the definition of normal has changed considerably. Along those lines, here are some of the COVID-related dining trends that are most likely here to stay:

Cleaning and sanitation

Pre-COVID, restauranteurs were no stranger to food inspections. Usually carried out an average of 1-3 times per year, every state has updated their inspection guidelines to reflect FDA and OSHA recommendations that limit the transmission of COVID-19. Staying up to date is crucial, not just to pass inspection, but to inspire the confidence needed for consumers to dine out. In Zagat’s Future of Dining Study, diners were asked what would most influence their decision to dine out after COVID restrictions were lifted. An overwhelming 75% cited “health & safety concerns.” Looking forward, you will want to not only build your reputation on great food and service, but a commitment to keeping your diners and employees safe through clean, safe food preparation and serving practices.

What this looks like is different for every restaurant, but for most it includes continued transparency in cleaning practices—signage and advertisement of regular sanitation helps customers feel safe. Also, many are looking towards hygienic (and eco-friendly) options like single-use serving utensils made from biodegradable/sustainable materials and non-print menus, which are becoming increasingly popular with the rise of QR codes and in-app ordering at the table. Highly visible sanitizing stations for diners and workers placed strategically throughout the restaurant, as well as contactless payment, even while dining in, are most likely here to stay.

Takeout and delivery

Amid 2020’s shelter-in-place orders and shutdowns, third-party delivery apps saw their business double. However, when many dining rooms opened across the country late last year, OpenTable still reported a decrease of 52% in the number of seated diners. As more individuals are vaccinated and restrictions lift, expect the caution around dining out to remain. Now is the time to make sure that your takeout and delivery processes are seamless. Unsure of where to start? Statistics show that 64% of diners prefer to order direct through the restaurant for delivery. Perhaps it is time to set up your own delivery service—it’s a revenue-generating investment that is also likely to increase overall customer satisfaction.

Similarly, with takeout you’ll want to explore additional channels. If you don’t have the space to create a drive-thru window, consider adding curbside pickup—50% of diners last year said they are using the service more than before. Not only is it a great way to create another point of contact with customers, but curbside service can help redirect some of your drive-thru traffic: eliminating bottlenecks, potentially shortening drive-thru wait times, and creating the perception of immediacy. For the best customer experience, consider integrating your curbside pickup/delivery options within your app or website.

Value

Consumers will be driven by value moving forward. Last year, QSR’s data showed that 40% of diners were looking for “a good value for the money” when dining out. Surprisingly, attributes like variety of menu offerings, atmosphere, and even convenience were on the decline. In general, the markets are rebounding better than most predicted, but 2020’s high unemployment rates and market instability cast a long shadow, and consumers are cautious about how they spend their money.

Another force behind value-driven dining is the emergence of the home chef. Last year, folks picked up their spatulas more than ever, and though many will return to their pre-COVID dining patterns in the next year, it’s estimated that about 37% of diners will opt for home-cooked meals—a $50 billion dollar industry difference. In this type of climate, competition is high, and brand loyalty is key. Creating an in-house rewards program or linking up with a larger partner is a great way to incentivize guests to return. Loyalty programs encourage habit and create a sense of reward for customers each time they order from your establishment.

You may also want to consider offering coupons and family-style menu options. In April of last year Datassential asked consumers how they would save money after restrictions were lifted and 23% cited coupon usage, while another 15% percent said that they would order from shared or large portion menus.

Communication is (still) key

Adaptation was the name of the game in 2020, and while there’s no crystal ball, last year’s dining data can tell us much about what to expect moving forward. Positioning your restaurant to respond to these trends may increase overall customer satisfaction and show you exactly where to invest your resources to generate the most revenue.

Regardless of what changes you make, remember that transparency and communication with your customers is paramount. Updating your restaurant’s web page and social media to reflect changing hours, new/renovated dining areas, and current menus will help your patrons stay engaged. Much is changing in the industry, but this is also an unprecedented opportunity to reset and discover what works best for you and your customer base.

Be sure to regularly visit our free resource section dedicated to advising restaurants on how to navigate the changing rules and regulations during the COVID-19 pandemic.

The post COVID restaurant trends here to stay appeared first on Rewards Network.

Takeout and delivery

It’s become apparent that the demand for takeout and delivery from restaurants is here to stay for the foreseeable future. With revenue in the online food delivery segment projected to reach $26.527 million in 2020, it’s a savvy move for owners and operators to continue to make this arm of their business a high priority in the upcoming year. No-contact meal pickups and deliveries are an option that many customers have come to expect from restaurants during COVID-19. If doable, place tables inside your restaurant’s entrance area where customers can pick up their online orders in a contactless (not interacting with any other person) environment. Other health initiatives can include cashless payments, hand sanitizing stations at the front door, and limiting the amount of people allowed inside to pick up their order at any one time.

Even when indoor dining capacity restrictions lift or change, many people may be wary to dine inside a restaurant right away, so it’s a good idea to plan for increased off-premise orders well into 2021. This means offering expanded to-go menu options—selecting your best-selling dishes that travel well—that are cost effective and revenue inducing, while remaining true to your brand. Consider releasing seasonal specials that tie in specific flavors and iconic dishes people enjoy around that time of year to tap into the emotions and nostalgia that’s associated with certain foods. The more seamless and stress-free of an experience you can make ordering peoples’ favorite dishes for them, the more apt they are to forgo the cooking and support local restaurants.

Meal kits

Another revenue generator that has been highlighted amidst the pandemic is to-go meal kits and online “grocery stores.” With many people still hesitant to enter the grocery store on a regular basis, it’s a smart idea to carve out a new revenue stream with these options in 2021. Even throughout this year, restaurants have garnered success with offering meal kit options for takeout/delivery. The key is to keep it simple by offering ingredients and dishes that you know will travel well and will be fairly straightforward for customers to recreate in their own homes. For example, if your steak tacos and house-made guacamole are one of your best sellers, consider offering a take-home taco night kit complete with all the portioned fresh ingredients and toppings. Also, throughout 2021 customers will continue to enjoy special milestones and holidays during coronavirus, although their gatherings may look a bit different than usual, good food will still be at the heart of the celebration. Consider solving for this customer pain point by curating and selling celebration and holiday inspired takeout family meal kits. Check out our blog, “Prepare for the holiday season during COVID-19,” for holiday-focused to-go meal kit inspiration.

Similarly, other restaurants have tested launching online grocery stores that sell prepared foods, cocktails, fresh produce, eggs, meat/seafood, and more directly to customers. Offering curbside pickup for orders on specific days can make it quick and easy for customers to purchase and obtain pantry and household staple items. Pair this tactic with other health initiatives such as cashless payments, hand sanitizing stations at the front door, and limiting the amount of people allowed inside to pick up their order at any one time. Many consumers during the COVID-19 pandemic appreciate that restaurant owners are modifying the usual on-premise restaurant interactions and will continue to look for these health/safety measures when choosing a restaurant next year.

Food and beverage trends

As we look to food trends in the upcoming year, healthy and sustainable options are taking center stage. Possibly influenced by the increased stress and anxiety that comes along with a global pandemic, consumers are predicted to shift their priorities to a more healthful and wellness-driven diet. In fact, a survey found that 54% of all consumers care more about the healthfulness of their food and beverage choices in 2020 than they did in 2010. This knowledge will be key for restaurant owners as they plan their 2021 dine-in and takeout/delivery menus. Consider adding more veggie-forward foods and alternative proteins to your menus since 56% of global consumers are trying to eat more plant-based foods and beverages. On the flipside, some restaurants are seeing success with offering comfort food options during this uncomfortable time such as sandwiches, mac and cheese, and fries. These foods are sure to remain a customer favorite in the year to come as a recent study found that two in three Americans are reverting to childhood food favorites and eating more comfort food during the pandemic. Plus, these types of foods travel well for takeout/delivery.

The ingredients that are predicted to be trending next year—mushrooms, herbs, roots, chickpeas, and unique cooking oils—also lean heavily on the health benefits. By making these types of foods and ingredients a focus of the new year, you may open your business up to a whole new potential pool of patrons such as flexitarians, vegetarians, pescatarians, and vegans. Beverage trends in 2021 continue to hinge on flavorful craft mocktails. As more people adapt a sober-curious lifestyle, restaurants are getting creative behind the bar by curating decadent booze-free cocktails that feature an effervescent mixture of herbs, fruits, florals, and spices.

Sustainability will be another key factor in peoples’ decisions on where to spend their money next year. With more and more consumers becoming conscious of supporting businesses that positively impact the environment, it’s crucial for restaurants to adopt sustainable practices. Perhaps you can invest in biodegradable and recyclable to-go containers and utensils. Or maybe you aim to make 2021 the year of low waste at your establishment by drastically reducing any frivolous packaging and repurposing food scraps when possible. Whichever way your restaurant chooses to implement this trend, it’s clear that customers are paying attention to their and the environment’s wellbeing now more than ever.

Looking ahead

The COVID-19 pandemic has ignited many challenges for the restaurant industry, which have led owners and operators to adopt innovative ways of remaining lucrative during these trying times. As you look ahead to 2021 it’s important to remain aware and on top of the upcoming trends so that you can plan to capitalize on these changes right away. An increased demand for takeout/delivery options is becoming a must for restaurants to generate revenue during the pandemic. Specifically, to-go meal kits and online markets have seen heightened success and are a creative means to garner extra dollars when on-premise dining is no longer your main source of income. And, as consumers begin to prioritize their mental and physical wellness, along with our planet’s health, restaurants should seriously consider implementing more plant-based and sustainable menu options and business practices. As you enter the new year, don’t shy away from testing different trends and strategies to discover what initiatives spur the largest spike in revenue and brand awareness for your business.

Be sure to regularly visit our free resource section dedicated to advising restaurants on how to navigate the changing rules and regulations during the COVID-19 pandemic.

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What foods consumers want (and don’t want) during the pandemic

While a salad is often one of the healthiest items on the menu, that’s not what consumers want these days. For example, only 3% of restaurant orders included a side salad this past July, which is down from 4% a year ago.

Instead, the stress of the pandemic is causing many Americans to order high-calorie, comfort food options when dining at restaurants, such as pizza, French fries, and burgers. While these may taste great and give people a temporary mood boost, it ultimately could leave them more depressed if giving into temptation leads to weight gain.

One way restaurants can better serve their customers, while also boosting their revenue, is by creating healthier versions of traditional comfort food recipes.

Healthier comfort food alternatives

First, sit down with your menu and identify popular dishes that could be prepared in a healthier manner. Then, challenge your chefs to adjust the recipes to reduce the amount of calories and fat. Some options to consider while slimming down your menu include:

• Baked “fried chicken” and French fries
• A meatloaf that uses oats instead of breadcrumbs, and ground turkey breast instead of ground beef
• Substituting lower-fat cheeses on pizzas and evaporated fat-free milk in place of heavy cream in sauces
• Plant-based meat alternatives for burgers, meatballs, lasagna, etc.
• Mac and cheese made with whole wheat pasta and half regular, half low-fat cheese
• Buffalo “wings” (subbing in cauliflower for chicken)
• Mashed potatoes made with vegetable or chicken stock instead of cream
• Swapping out regular noodles for plant-based versions
• Vegetarian chili in place of a traditional meat-based chili

It will take some creativity and potential adjustments to your ordering, but these menu tweaks are an excellent way to appeal to your customers’ desire for hearty, satisfying food that is also healthy.

If possible, overhaul your menu so your healthy take on comfort foods is featured prominently and train staff to highlight these options to customers. Consider using photographs of your revamped entrées, and placing these items at the top of the menu or in a highlighted box, so they really stand out.

Mood-boosting foods

While satisfying comfort meals can help customers seeking to pump the brakes on pandemic-related weight gain, there are other ways restaurant owners can help consumers eat better and improve their mood by incorporating a variety of super foods.

For example, eggs contain melatonin, which can help people struggling with insomnia get some much-needed sleep. Black beans are filled with magnesium, which helps reduce anxiety. And yogurt, one of the best sources of probiotics, is a natural aid to help depression. Other foods that you can weave into your menu to help boost your customers’ health and mood include:

• Onions
• Garlic
• Leafy greens
• Whole grains
• Salmon
• Lentils
• Citrus fruit
• Red bell peppers
• Miso
• Kefir
• Beets
• Broccoli
• Turmeric

Highlight these ingredients on your menu whenever possible, including touting their health benefits for your pandemic-weary customers tired of cooking, but ready to embrace better eating habits.

Implementing menu changes

Obviously, overhauling your menu takes time. One way to ease into it is by rolling out new menu items gradually. This could be by introducing revamped meals as a daily/weekly special, and then making a new dish part of your regular menu once it becomes a proven hit with customers.

Restaurant owners might want to also consider creating “grab and go” meal plan boxes featuring healthier menu items that customers can enjoy at home. Allow people to order ahead for the week and purchase one meal or even a week of meals (with discounts or other incentives for customers who purchase a full week’s worth of food).

Promote your healthy offerings on social media to drive awareness of your slimmed-down comfort classics, including availability/ordering information if you decide to allow customers to pre-order meals. You also might want to consider partnering with a delivery service or implementing your own delivery service to drive more sales of your healthy classics.

To discover more restaurant marketing strategies and tactics that can help your business during COVID-19, take a look at our free e-tool, “Coronavirus era: 13 restaurant marketing tips.”

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To provide restaurants an idea of how their peers will be adapting (or not adapting) to the fall and winter months, we surveyed nearly 400 restaurants across the country about their upcoming business plans.

Limitations and consumer demand

A vast majority of the U.S. restaurants are operating at less than 100% capacity in their dining rooms. For the restaurateurs who responded to our survey, only 15% said they were allowed to dine at full capacity, with nearly half saying they were allowed 50% capacity. Of the restaurants who are operating at less than full capacity, only 29% said they could keep their doors open indefinitely. Nearly half of respondents said they would last less than a year, with 28% saying they would last between four and six months – enough to sustain through the winter. This tells us that another shutdown or further limiting of capacity prior to spring will likely cripple many restaurants. In fact, according to a survey by the National Restaurant Association, nearly one in six restaurants (representing nearly 100,000 restaurants) is closed either permanently or long term.

When asked what they believe consumer demand is for dining out now compared to before the pandemic, only 3% unsurprisingly said demand is the same as it previously was. The top answer by far was 50% demand, with nearly 45% of respondents selecting this option. When asked how long they could keep their doors open if less than full demand remained the norm (but there were no capacity limits), half said they could last indefinitely, with nearly one in five saying they would last only through the winter months.

Restaurant operators are clearly more optimistic under the full-capacity/lower-demand scenario than under the limited-capacity scenario, perhaps with optimism that the demand would pick up or they could find ways to entice diners.

Another identified problem that’s likely to continue for the foreseeable future: smaller party sizes. In fact, 87% of survey respondents said that party sizes are smaller now than before the pandemic. Of course, smaller parties mean smaller checks per table. If consumer demand trends downward as the colder weather approaches, combined with more capacity restrictions, and fewer people allowed per party, this can be a major drain on revenue.

Patio dining in colder weather

For the respondents who reported having outdoor seating (or planned to add outdoor seating soon) and whose climates allow them to seat people outdoors nine or fewer months of the year, the decision to “weatherize” the patio for the colder weather was split. Half of restaurants will invest in making their patio a cold weather seating option, while the other half will not.

One thing local restaurants know how to do is anticipate their customers’ wants and needs. Undoubtedly, they have an expert feel for how their communities will react to changes. Of the restaurant owners who plan to make their patio winter-appropriate, nearly two-thirds said diners will be very willing or somewhat willing to dine on the patio in the colder months. This is encouraging for restaurants, especially as only about 8% of respondents said that guests will be very unwilling. And since the respondents were split between weatherizing and not weatherizing their patios, this may tell us that the most optimistic owners are planning to do so because they believe outdoor dining demand will be there.

Owning the delivery revenue stream

Delivery has become a staple for restaurants who never thought it would have to be. A large number of restaurants launched their own delivery service just to stay afloat during the pandemic. It may turn out to be a good investment, since previous Rewards Network consumer surveys have indicated that people expect to order delivery more in the coming months than previous fall/winter periods. Of the restaurants we surveyed, 27% launched their own delivery service. Utilizing third-party delivery providers is not realistic for some restaurants due to the exorbitant fees cutting too far into profits.

The cost for launching an in-house delivery service was all over the board, ranging from $0 to $10,000. The average was $1,923. The cost to start a delivery service can depend on many factors, such as labor needs, POS upgrades, and marketing costs. For instance, if a restaurant could cross-utilize current staff to deliver food and already has the POS capabilities to handle delivery orders, the cost to launch could be minimal. We encourage restaurant operators to closely evaluate the true cost of third-party delivery services against the investment in their own delivery operation to understand the long-term return on each method.

We also set out to get a high-level idea of how profitable or unprofitable third-party delivery services are for restaurants. DoorDash and Grubhub were the overwhelming “primary” vendors used by our survey takers, with Uber Eats coming in third. When asked how profitable or unprofitable these services have been for restaurants, only 6% said very profitable, with the top two overwhelming choices being somewhat profitable and break even. While it seems that these services have helped nearly half of restaurants stay afloat, the other half have typically broken even or lost money. This statistic (along with 48% of consumers saying they plan to dine out less this fall/winter compared to past periods) further highlights the need for restaurants to consider launching their own delivery service, because most restaurants cannot afford to cut their margins for a sustained period of time.

Menu price changes

Finally, we asked survey respondents if they had raised or lowered their menu prices in response to the pandemic, and how their guests have reacted to those additional costs. Nearly 42% said they did raise their prices to make up for lower capacity and demand. Of those respondents, consumer reactions were basically split down the middle, with nearly half saying that most customers have not noticed, and the other half saying some have noticed. For customers that have noticed, one out of five customers have complained, while the majority are understanding. No respondents indicated that many customers have noticed and complained.

The bottom line

The road ahead may be rough, but with proper planning and listening to the local market, restaurants can survive (and some may thrive) through a COVID-19 winter. How is restaurant optimism for the business environment over the next six months? Well…we asked, and 69% said they were optimistic, with only 8% saying they were very unoptimistic. While that’s a far cry from the usual optimism generally seen from a group of passionate restaurant owners, it’s not bad given the current situation. Restaurants that can find a way to attract diners throughout the colder months and make delivery profitable will be set up for success through, hopefully, the last legs of the pandemic.

Looking for more suggestions on navigating the current and post-COVID world? Be sure to browse our dedicated COVID-19 restaurant resource section and follow us on Twitter.

We conducted this survey of Rewards Network partner members for approximately one week in early October. Customers were entered into a drawing for a $500 Visa gift card for answering the survey questions honestly and completely. All of the information contained in this article summarizing the survey results is provided for informational purposes only and should not be construed as providing tax, legal, accounting, career, or other professional advice.

The post Survey results: restaurant owner views on adapting for colder weather dining appeared first on Rewards Network.

To help restaurant owners prepare for the fall/winter season, we conducted a survey of consumers to learn more about what they anticipate their dining habits will look like during the upcoming months.

The goal of this survey is to provide a nationwide snapshot of consumer sentiment around restaurant dining in the near future. However, there a few important caveats we want to share before we dive into our analysis. First, cooler fall/winter weather will obviously only impact certain parts of the country, so it stands to reason that a restaurant in Maine will face more challenges with winter dining than a restaurant in Florida. In addition, restrictions on restaurants can vary widely by state, and even municipality. For example, restaurants in Georgia re-opened with no restrictions back in June, while New York will not allow indoor dining until September 30, and then with capacity capped at 25%.

Consumers’ projected dining-out frequency

We started out by asking our survey takers how often they expect to dine out at restaurants this fall/winter, and what factors will impact their decision to dine out (or not). When it came to whether they would dine out more or less than last year, it was pretty evenly split, with slightly more than half saying they will dine out the same or more than in years past, and slightly under half saying they plan to dine out less. The vast majority, 75%, said they plan on dining out at least biweekly, with 30% saying they plan to do so five or more times per month. However, about 7% of respondents said they anticipate rarely or never dining out at a restaurant during the fall/winter season.

What are the primary reasons that some respondents cited for their plan to dine out less frequently? Unsurprisingly, the overwhelming top response was fear of catching/spreading COVID-19. The next top vote-getter was a reduction in dining due to a corresponding reduction in travel, which makes sense given that many of our members are frequent travelers who dine out more when they travel. Only 18% said it will be to save money, so economics do not appear to be playing a major role in this anticipated decline. Another notable finding was that only 13% said it was because they now prefer takeout/delivery. This tells us that to-go ordering has not replaced a consumer preference for dining out, and when the virus risk is mitigated, many customers are likely to return to restaurant dining rooms.

What it means for restaurants

Barring a dramatic decrease in coronavirus infections, U.S. restaurants are very likely to have fewer dine-in customers this fall/winter than usual. With decreased demand, it will be imperative for restaurants to deliver impeccable experiences to keep guests coming back, and to encourage positive reviews (especially important during a time when prolonged isolation is causing many people to be more active online). Restaurant operators should also focus on remarketing to guests through email or other means, as well as offering return visit incentives to keep customers coming back.

While nothing can replace the experience of dining out, restaurants should continue to invest in providing superior takeout and delivery services, as this will likely be the only way many consumers will feel comfortable consuming restaurant meals for some time. Another potential revenue generator is offering meal kits that customers can cook at home themselves. The rise in popularity of meal kit services such as Blue Apron, Freshly, and Purple Carrot has already proven the potential of this model, and many restaurants are already reporting success engaging with their customers in this way.

A final piece of advice for restaurants is to invest in a user-friendly reservation system. Whether partnering with a third party or launching your own, it’s important to make it as easy as possible for customers to book a table at your restaurant.

The importance of making guests feel comfortable

While most restaurants are going above and beyond to ensure that customers feel safe in their establishment, we wanted to find out what consumers’ comfort level is when it comes to dining out now compared to in the first few months of the pandemic.

The results were pretty evenly split, with 32% of respondents saying they feel less comfortable dining out now. This could be signaling continued uneasiness among some members of the public due to spikes in coronavirus cases across the country. However, 35% said they feel the same level of comfort and 33% responded that they feel more comfortable than in the earlier stages of the pandemic. Possible contributing factors for the increased comfort level could be enhanced dining room safety precautions as well as rising risk tolerance as most consumers have gotten a few positive dining out experiences under their belt.

We then looked a little deeper at consumer sentiment on indoor dining by asking survey takers how comfortable they are dining indoors at a restaurant that takes the proper safety precautions. There were a significant number of respondents on both ends of the spectrum, with 24% of respondents choosing very comfortable, and 19% selecting very uncomfortable. However, most people tended to land somewhere in the middle, with about 57% saying they were somewhat comfortable or somewhat uncomfortable dining indoors.

So, what is it going to take to make consumers feel safe dining inside? We asked them which dining safety initiatives are most important to them. The top responses were not surprising, with the majority overwhelming citing socially distanced tables, frequent sanitation, and staff wearing personal protective equipment (PPE). The “no-touch” options, including no-touch bathrooms, hand sanitizer stations, and touchless ordering, were not as popular among respondents. This could the result of the growing evidence that transmission occurs primarily by air, as well as the fact that many people have already become accustomed to washing their hands more frequently and/or are carrying around their own hand sanitizer.

What it means for restaurants

The majority of people fall somewhere in the middle, feeling either cautiously optimistic or somewhat skeptical about dining out. This group can likely be persuaded to dine out, but will need restaurants to demonstrate that basic safety standards are being followed in order to feel comfortable. They may also need to have an exceptional experience to feel that it’s worthwhile to return. This further highlights the need for restaurants to pay close attention to details in the end-to-end dining experience: from the reservation, to the meal, to the service.

Also worth noting is that 32% of survey takers chose outdoor seating availability as a factor in their dining-out comfort level. Many consumers prefer eating outdoors these days, so we asked how comfortable they anticipate they will feel dining on a climate-controlled patio in the winter. The majority of respondents said they would feel very comfortable or somewhat comfortable. Only 14% said they would feel very uncomfortable, with a quarter of respondents saying they would be somewhat uncomfortable (they can probably be persuaded to at least try it). It will be interesting to see how consumers actually respond to the prospect of dining outdoors as the weather grows colder in many parts of the country.

Takeout and delivery: a fast-growing and critical component for restaurant success

Many restaurants have been forced to rely heavily on takeout and delivery since the start of the pandemic, and will likely continue to do so. In fact, when asked how often they plan to order takeout or delivery this fall and winter compared to in previous years, more than half of survey respondents said they will order more than usual, with only one in 10 saying less than usual. This further solidifies the evidence that the demand for takeout and delivery orders will continue to grow.

We next asked our respondents what factors mattered most to them when it comes to the takeout and delivery experience. The top choice by far was having a culinary experience similar to eating at the restaurant, followed (not surprisingly) by restaurants and delivery drivers following proper safety protocols, price, and ease of ordering from the restaurant.

One thing worth noting is that only 13% of respondents said that ordering from their favorite delivery app was important, but 38% said that the ability to easily order from the restaurant website mattered to them. That makes sense, since when we then asked how they prefer to order takeout or delivery, 81% of survey takers said they prefer to order directly from the restaurant. This may not be surprising given that total order price was a top choice in the most important takeout/delivery factors, and most third-party delivery apps charge additional fees to use their service. Another possible factor could be growing consumer awareness regarding the sometimes hefty charges restaurants are forced to absorb from these third-party orders, resulting in a growing preference for ordering directly from the establishment.

What it means for restaurants

When it comes to to-go orders, consumers are increasingly expecting to receive a meal at a reasonable price that travelled well (perhaps with reheating instructions), and was delivered in a safe manner. It’s important for restaurants to not waver in meeting these to-go expectations, as one sub-optimal meal could cost them a customer (or more, if that customer goes on to share their negative experience with others).

Since takeout and delivery will likely continue to play a major role for the foreseeable future, restaurant owners need to closely evaluate their per-order costs, and consider dropping third-party providers that cause too big a hit to their bottom line. Owners should also examine the economic feasibility of launching their own delivery service, which could be much more profitable in the long run. And, as mentioned previously, they need to ensure that the ordering experience is as easy and intuitive as possible for customers.

Finally, restaurants should develop a cohesive remarketing strategy. Although nearly half of respondents indicated that they try new restaurants somewhat often or very often, nearly half said they rarely do. This is why remarketing to existing customers should be a critical component of any restaurant’s marketing strategy.

Incentivize guests to choose your restaurant

To find out how heavily incentives impact consumer dining decisions, we asked our survey takers how much they weigh the ability to receive reward incentives for dining out now compared to before the pandemic. Nearly half responded to say that it’s even more important than before, with almost the same percentage saying it carried the same importance as before. Only 5% said it was less important.

What it means for restaurants

Earning rewards for dining out or ordering takeout/delivery is becoming even more important to consumers. Restaurants that aren’t already offering some kind of loyalty program should consider creating one, especially as consumers have tightened their grips on their wallets. Restaurants with a loyalty program should also highlight the benefits while remarketing to guests.

Author’s Note: At Rewards Network, we can market your restaurant to members of some of the biggest loyalty programs—including United®, Hilton®, American Airlines, and Marriott Bonvoy®—aligning your restaurant with these trusted brands while helping you fill your tables (and your to-go orders) with full-price customers.

Conclusion

Restaurant owners are smart, savvy, and scrappy. Although the current environment poses many obstacles to success, restaurant owners can survive (and potentially even thrive) by being hyper focused on the customer. Paying attention to every little detail during the dining-in experience, while offering easy, affordable ways for customers to place a takeout/delivery order, could be the ticket to success in the COVID-19 era.

Looking for more suggestions on navigating the current and post-COVID world? Be sure to browse our dedicated COVID-19 restaurant resource section and follow us on Twitter.

We conducted this survey of members of AAdvantage Dining^SM, Caesars Rewards Dining, Rapid Rewards Dining®, and MileagePlus Dining^SM for approximately one week in early September. Members of AAdvantage Dining^SM and MileagePlus Dining were awarded bonus miles for answering the survey questions honestly and completely. All of the information contained in this article summarizing the survey results is provided for informational purposes only and should not be construed as providing tax, legal, accounting, career, or other professional advice.

The post Survey results: consumer views on dining at restaurants this fall and winter appeared first on Rewards Network.

Our goal was to provide restaurants with valuable insight to help them alleviate potential customer concerns about a return to dining out. In order to be eligible to take the full survey, members needed to:

• Live in an area were restaurants were closed due to shelter-in-place orders, and;
• Have dined out at least once a month prior to the mass closing of restaurants.

After crunching the numbers, our main takeaways from the survey are this: people are social creatures who want to resume dining out in restaurants as soon as they feel safe doing so.

Timing and frequency

Sixty percent of survey respondents said that once dine-in restrictions are lifted, they’ll feel comfortable dining again immediately or within a few weeks at restaurants that are taking standard safety precautions (limited seating capacity, increased sanitation, socially distanced tables, servers wearing masks/gloves). In addition, another 23% said they would be ready one to two months after restrictions are lifted. This leaves 17% of respondents who won’t be ready to venture back into restaurants until three months or more after restrictions are lifted.

When asked how often they anticipate dining out now compared to before the pandemic, 64% of respondents said they will be dining out at the same frequency as before the pandemic. However, almost 29% say they believe they will dine in restaurants less frequently.

For those who plan on dining out less, just over two-thirds of respondents said it’s because of the risk of catching or spreading the virus.

What it means for restaurants

The good news for restaurant owners is that the majority of guests anticipate being ready to dine out again shortly after restrictions are lifted. Since most restaurants will be operating at limited capacity, it appears there will be ample demand to fill available seats. If and when the virus dissipates, it’s likely that consumer sentiment around dining out will improve along with the easing of restaurant capacity restrictions. Ideally, this will result in an alignment of available seats and guest demand.

Taking (and publicizing) proactive steps to alleviate potential customer concerns about the safety may be the key to success for establishments for the foreseeable future. Restaurants can help ease concerns by following local public health and safety guidelines, and highlighting the specific precautions they are taking on their website, digital marketing channels, and with in-store signage.

Furthermore, with nearly one in 10 of respondents admitting a preference for takeout and delivery now, restaurant owners should incentivize guests to place an order directly from them, since orders placed with third-party delivery apps can prove costly for restaurants.

Health and safety

When asked what will represent the major turning point in their decision to dine out again, a combined 71% of respondents plan to rely on data, local ordinances, and guidance from health organizations. This includes:

• 26% who say they will dine out again when health authorities, such as the Centers for Disease Control or other government organizations, say it is OK to do so
• 25% when the data shows a flattening of the new cases curve
• 20% when shelter-in-place restrictions put in place by state and/or local governments are lifted

For 14% of respondents, the availability of a vaccine for the novel coronavirus will be the deciding factor in their decision to return to dining out, while 6% want to see testing become more widely available. Finally, 5% of respondents say they will be ready to dine out as soon as their family or friends start to do so.

Based on the survey results, it appears that most consumers won’t feel comfortable enjoying a night out until community and health guidelines say it’s safe to do so, and can present the data to back it up. Restaurant owners should keep a close eye on local reopening timelines—generally built around local infection data—to ensure they are taking the appropriate steps at the right time to reopen successfully.

We also asked respondents which safety initiatives would factor most heavily in their decision to dine out again, and gave them the ability to select multiple answers. Socially distanced tables received the most votes, with 69% citing this as a prime concern. Frequent sanitization of surfaces was close behind, with nearly two thirds saying this would be a deciding factor, followed by the use of face masks and gloves by restaurant staff with 48%.

This shows that taking basic safety precautions in the dining room, such as socially distanced tables, frequently sanitizing, and mandatory masks and gloves for staff will likely be sufficient for the majority of guests to feel comfortable.

The availability of outdoor seating was also cited by more than a quarter of guests as something they are looking for when dining out. Restaurants that have an existing patio, or the ability to create one, should be able to benefit from this demand by appealing to not only sun seekers, but safety-conscious patrons. If you need some tips on sprucing up or creating an inviting patio space, check out the suggestions in our free e-book, “Get Your Restaurant Ready for Summer on a Budget.”

Dining preferences and socialization

Although there is the strong possibility that many restaurants won’t survive the crisis, consumers should still have plenty of choices when they feel ready to make the dining out leap. We asked survey takers which criteria they think will be the most influential when deciding which restaurant to dine at, with the option to choose multiple answers. The top choice was survey takers’ favorite place to dine pre-pandemic. More than two-thirds of respondents chose that option, which potentially indicates a desire to return to normal dining behavior.

The next three top vote-getters seem to be potentially more aligned with post-pandemic behavior. Almost two-thirds will seek out restaurants with the highest degree of cleanliness, close to half want to patronize restaurants that showed support for staff and the community during the pandemic, and almost a third will be looking for spots with the best prices, promotions, or rewards.

We also asked survey takers what they are looking forward to the most about dining out again. Given the current isolation situation, it’s not surprising that the leading answer was the social aspect, with 30% of respondents selecting this option. The other top three vote-getters include:

• Dining at my favorite restaurants: 29%
• Just getting out of the house: 25%
• Eating restaurant food: 11%

Six percent, likely those who are growing weary of the necessity of always serving as their own cook, waiter, and busser, cite being waited on as the restaurant experience they’re looking forward to with the most anticipation.

What it means for restaurants

It’s clear that consumers, as soon as they feel comfortable, will be more concerned about dining at their favorite restaurants than discounted pricing. Now is the time to get your loyal customers’ mouths watering at the thought of visiting your establishment. If you have a mailing list, send out emails/direct mail pieces alerting customers to when they will be able to dine in again, and include any changes in hours/reservations that you are implementing in the short-term. This information should also be posted on your website and social media channels.

In addition, you should highlight your health and safety initiatives, as well as any efforts you spearheaded to assist your employees and the community during the pandemic. People want to support businesses that care about and help others, even in the midst of a crisis.

Finally, tap into the pent-up demand among people to get out of the house and be social by promoting your bar or restaurant’s atmosphere and any special event nights, like trivia, to help consumers feel like they will get the most out of their potentially limited nights out by choosing your establishment.

Pricing, promos, and rewards

Some good news for restaurateurs is that based on the results of our survey, your guests won’t necessarily be looking for rock-bottom deals when choosing a restaurant. When asked how price-sensitive they expect to be when dining out now compared to before the pandemic, 74% of respondents said they will be just as price-sensitive, with only 18% saying more sensitive. And 8% think they will be less sensitive to prices. That’s good news for the restaurant owners that can win their business!

In addition, 54% of respondents aren’t expecting changes in the number of discounts or specials offered by restaurants, and 9% are expecting fewer. However, 37% do indicate that they expect a rise in special offers and discounts from restaurants as they reopen. While this could just be an assumption of how restaurants will plan on attracting customers, some may also be actively seeking out deals when choosing where to dine.

Finally, given that our survey takers are clearly interested in receiving rewards when they dine, we asked how important those rewards will be compared to before the crisis. Twenty-eight percent said it will be more important to receive rewards, while 66% say just as important as before, and 6% say less important.

What it means for restaurants

Although the majority of customers do not appear to be more price-sensitive, a large percentage of them are clearly expecting to see more discounts and promotions at restaurants. Whether or not that becomes a primary deciding factor when choosing a place to eat that isn’t one of their go-to favorites remains to be seen. However, restaurateurs may want to consider updating their menu to include less expensive options, and lowering the price on some higher-margin favorites and/or upselling select full-priced options.

Reward programs are another way to entice consumers to choose your restaurant over a competitor. You can either start your own to reward frequent diners, or partner with a proven company like Rewards Network that allows customers to earn rewards when they dine.

Conclusion

Our survey results point to a pent-up desire among consumers to resume dining out in restaurants shortly after restrictions are lifted. While demand will be initially dependent on health professionals’ guidance, restaurants taking the extra safety precautions and communicating them effectively to customers will be best-positioned for success in the near future.

Consumers may be dining less frequently (at least initially), but when they do, they are looking to eat at their favorite spots. Restaurants will want to ensure they communicate their reopening plans to loyal customers first and foremost. After guests dine, restaurants should be sure to inform them of other ways to enjoy their food and support them, such as ordering takeout directly from the restaurant or ordering delivery through the channel most profitable to the restaurant.

Price may not be the primary decision factor for consumers’ dining out choices, but offering specials, more affordable menu options, or rewards for dining could capture a necessary share of undecided diners. Furthermore, since customers are mostly looking forward to getting out of the house and connecting with one another, restaurants should be marketing the social experience they offer, perhaps by using imagery of happy customers and promoting themed nights.

Looking for more suggestions on navigating the current and post-COVID world? Be sure to browse our dedicated COVID-19 restaurant resource section and follow us on Twitter.

We conducted this survey of 1,373 members of AAdvantage Dining^SM and MileagePlus Dining^SM for approximately one week in mid-May. Members were awarded bonus miles for answering the survey questions honestly and completely. All of the information contained in this article summarizing the survey results is provided for informational purposes only and should not be construed as providing tax, legal, accounting, career, or other professional advice.

The post Survey results: Consumers seek safety and socialization at restaurants in wake of COVID-19 appeared first on Rewards Network.

Utilize the Paycheck Protection Program

The Coronavirus Aid, Relief, and Economic Security (CARES) Act assigned $349 billion to aid small businesses in their efforts to pay employees, cover overhead costs, and keep their operations running as smoothly as possible. These initial funds were depleted on April 16, 2020, and an additional $310 billion was added to the CARES Act’s funding under the Paycheck Protection Program (PPP) and Health Care Enhancement Act.

The PPP is directly applicable to restaurant owners and offers 100-percent federally guaranteed loans to qualifying small businesses that have been impacted by COVID-19. A main highlight of this program is that the portion of loan proceeds used for allowable expenses during the crisis is 100-percent forgivable, as long as you have the same or larger number of FTEs on April 27, 2020, as you did on February 15, 2020. Also, 75 percent of your PPP loan must be used to pay your staff (tips included), even if your restaurant is currently only accepting takeout/delivery orders, and 25 percent can be used for mortgage interest, rent, and utilities. These employee-centric funds can allow restaurant owners to put the necessary measures and staff in place to prepare for a full opening in the future. This can include hiring back employees that have been furloughed, cross-training positions, and more.

To learn more about the CARES Act and Paycheck Protection Program, download our free e-tool, “Restaurants’ COVID-19 Emergency Loan Guide” and check out our blog, “How to receive 100% Paycheck Protection Program loan forgiveness.”

If your business does not qualify or was not able to receive the PPP, it’s a savvy move to pare down your expenses to the absolute essentials in order to remain as fiscally lean as possible during these unpredictable times. This may include only keeping on management and senior employees with diverse skillsets during this time. You can cross-train your staff to work various positions such as takeout and delivery to ensure they are making enough money per shift to warrant coming back from unemployment.

Explore delivery options to drive additional sales

Shelter-in-place orders remain in effect in many states, and even when they are lifted restaurant occupancy rates will most likely be at 50 percent or less, making it vital for restaurant owners to seek other avenues of revenue to offset the profit losses from their usual dine-in customers. The most obvious solution is to offer takeout and delivery, as there is no evidence of coronavirus being transmitted by food or food packaging, but this can be a daunting undertaking for some businesses. While it’s of course ideal to set up your own in-house takeout/delivery service to retain all of the profits, this can require additional resources that may not be viable at this time. In this case, restaurant operators can utilize third-party food delivery partners. From the big names to more niche services, there is a takeout/delivery technology to fit practically any restaurant owner’s needs. Check out the pros, cons, and pricing structures for some of the top app choices in our e-tool, “Navigating Third-Party Food Delivery Services.”

We understand that in the current economic climate third-party apps’ commission rates and fees may be too much for some restaurants’ bottom lines, but unfortunately there’s no telling when occupancy and revenue numbers will return to normal. This means that restaurant owners need to seriously consider offering a delivery/takeout option during COVID-19 to stay afloat financially and to maintain brand recognition and loyalty.

Small marketing tips and tricks can go a long way to preserve an establishment’s brand and connection with its customers when fulfilling orders placed on a third-party app. Ideas include:

• Placing a “thank you” flyer into each to-go order bag—this small gesture can go a long way these days.
• Educate customers via your website, social media pages, etc., that if they place takeout/delivery orders directly from your restaurant (if feasible) vs. a third-party app they will be offering even greater support to your bottom line.
• Include a special offer for an appetizer or dessert with each takeout/delivery order to encourage future business.

To learn even more about turning delivery app customers into your customers, read our blog, “Navigating food delivery & third-party apps during COVID-19.”

Align supplier orders to your new normal

As a business owner, there are many moving parts to consider when leaning out your operations during the Coronavirus era. One such area to review is your supplier orders. A good first step is to meet with your rep and decide which items are necessities that still need to be ordered each week and which can be cut from your tab completely. You can research if there are any products available similar to what you’re currently using that may prove to be more cost-effective and less labor intensive to improve your return on investment (ROI). Then, determine how/when you’ll pick up your orders — one delivery per week, picking up smaller orders at the center’s location a few times a week, etc. because times have also changed for your suppliers and their vendors too. Also, you’ll want to work with your suppliers and partners to establish a rebuilding plan to ensure your business is able to get current on any outstanding accounts payable items.

As you plan your orders, a good cost-saving mentality you may want to adapt is to pivot to a limited menu that only focuses on your restaurant’s most popular items with the best-margin offerings that don’t require intensive preparation time. This way, you and your staff can concentrate your efforts and dollars on the food and drinks you already know work and garner revenue rather than spreading resources too thin or trying to create new dishes. Keep in mind that your biggest sellers may not always have the best profit margins and vice versa. Once you unearth the winning formula and combinations you can see optimal ROI with the lowest amount of supplies/labor costs.

Communicate effectively to your customers

There are many unknowns around the timing and regulations that will be imposed upon reopening establishments for in-restaurant dining. We recommend you research the latest news and guidelines specific to your state or city.   

Prior to officially opening for dining, it’s very important that you maintain or restart a line of communication to your patrons. Some restaurants have been focused on takeout and delivery, while others need to reopen after being closed a few months. Below are best practices and approaches that will help keep you top of mind once you’re gearing up for dine-in service. 

• Website: Your restaurant’s website is a powerful vehicle to deliver pertinent information and updates to your customers. As diners prepare to shift from ordering in to going out to dine, or a combination of both, they will be looking at your restaurant’s website to check for updates. Place prominent information such as changes in hours, how to make reservations, dine-in/delivery protocols, and donation page links front and center on the homepage of your site. 
• Press Kit: To encourage media coverage of your restaurant, you’ll want to make it as easy as possible for the media to access information about your restaurant in one place. Create a press page on your website that includes logo files, photos of your menu items, contact information, staff bios, and any other components that may set your business apart from neighboring competitors.
• Social Media: It’s a good idea to remind your followers a couple times a week that you’re open for business via delivery, takeout, etc. Post about any special deals and include photos of enticing dishes to encourage orders. You can also drop a note once a week to your audience explaining the health/safety precautions your restaurant is taking during COVID-19. Crafting posts that ask followers questions through a poll, prompt them to enter a contest, or ask them to post photos enjoying your food/drinks is an effective way to spike engagement.
• Email Campaign: If you have a database of patrons’ emails, now’s the time to send an update on how the restaurant is doing and what plans are in the works. Showcase any new or future guidelines and systems that will be in place to give diners a sense of education, comfort, and understanding before walking through your doors. You can also remind them of any special deals and promotions you’re running now and/or upon the restaurant’s reopening.
• Public Relations: Your local news media is a great tool to showcase what you’re doing and how you’re maintaining business prior to reopening. To get the media’s attention you’ll want to have an interesting angle to tout such as donating part of your delivery order proceeds to charity, taking exceptional care of your staff during COVID-19 in a unique way, or a heartwarming community story your restaurant played a part in. It’s a good idea to also stay close to your vendor reps and partner contacts so you can capitalize on any publicity opportunities that may arise such as being featured on “Best of” lists or recipe roundups.

Get creative to garner revenue

As some states begin to lift shelter-in-place orders, put your team to work brainstorming creative ways of catching eager diners’ eyes for when your time comes. Although people may be hesitant to congregate in large gatherings, they will most certainly be eager to get out of the house, enjoy nature, and return to some semblance of “normal.” Check out the below initiatives that can put your business one step ahead of the game when the shelter-in-place order is lifted in your area.

• Curate a to-go picnic basket: With parks and beaches starting to open up, a ready-made picnic is smart offering for any restaurant. Compile your best easy-to-eat options and a few refreshing beverages along with to-go containers, cups, and cutlery in a branded basket for a set price. People are excited to enjoy the outdoors during these times, and now they can enjoy their favorite dishes from your restaurant too.
• Build a themed menu: Ride the coattails of a new, popular, or cult classic TV show or movie by offering on-theme dishes from ingredients you already have for delivery and takeout. You can even raise the stakes and encourage customers to share a photo of themselves enjoying their meal while binging their favorite show.
• Share your skills: You can offer deconstructed versions of your most popular dishes (cocktails too if it’s allowed by your state) and go live on social media to host a virtual cooking class. Step-by-step and/or time-lapse cooking videos are a great engagement tool for any restaurant’s social presence. Also, encourage participants to share their final creations and tag/follow your page.
• Host a game night: Take virtual game night to the next level by including bingo cards with every takeout/delivery order. Then, pick one night a week to host a virtual bingo game on your Facebook or Instagram live. Not only can this idea spur more takeout/delivery orders, but it’s an easy and effective way to stay connected with your customer base.

Plan for the new normal

This global pandemic has undoubtedly fueled a host of unforeseen challenges and roadblocks for the restaurant industry. As a business owner, it’s essential to not only understand the shifting industry landscape, but what opportunities and assistance are available specifically for your restaurant during this trying time. Restaurants can then begin to plan for and test different strategic approaches, gleaning valuable customer and business insights, in preparation for opening their doors to welcome back patrons in the future.

To discover even more restaurant marketing tips and tricks that can help your business during COVID-19 and when your restaurants reopen, download our free e-tool, “Coronavirus Era: 13 Restaurant Marketing Tips.”

The post How restaurants can successfully reopen in the coronavirus era appeared first on Rewards Network.

In a time where business is anything but usual, we’ve highlighted a few Rewards Network customer success stories to provide some inspiration. Hopefully, this can help spark some ideas on new marketing tactics and revenue streams you can incorporate and adapt your restaurant business model in the short term, and beyond.

Changing the business model

Many restaurants have been closed for in-house dining for about a month now, and those that remain open have shifted exclusively to takeout and delivery. In addition to refining and optimizing the takeout/delivery process, many restaurants have found success by expanding their offerings.

Some restaurants who have full access to their suppliers are adding grocery store items to their “menu.” From grocery bundle bags featuring basic staples to restaurant-quality steaks and seafood, customers are ordering items on their grocery list directly from restaurants.*

For example, Corner Butcher Shop, in La Verne, California, is selling fresh meat directly to consumers, including steak cooked to order.

To supplement their takeout and delivery business, some restaurants have created specialized meal kits—complete with cooking instructions—for their fans. From teaching folks how to cook the perfect steak, bake the perfect chocolate chunk cookies, or build a charcuterie board, selling these kits can help you move product and stay top-of-mind with your customers.

The Allegheny Wine Mixer (AWM) in Pittsburgh is offering care packages for curbside pickup filled with a “dealer’s choice” of AWM goods: cheese, nuts, meats, tapenades, brownies, and more. The care package also includes a bottle of wine, and customers can choose from red, white, rosé, or sparkling.

Using social media to engage with customers

Maintaining the emotional bond between your restaurant and customers, especially when they aren’t able to physically dine in your restaurant, is important. One cost-effective and powerful way to keep your customers connected and engaged is by creating social media incentives and contests.

Many restaurants are using their social accounts to share a variety of incentives for customers who place takeout orders from their establishments. These can range from the expected, like gift cards, to humorous (yet in-demand) products, like toilet paper. Whether practical or simply amusing, these type of extra incentives can help keep your restaurant top of mind with you customers.

90 Miles Cuban Café, which has three locations in Chicago, is offering a free CAFECITO exclusively to first responders who place a takeout order. While that does limit the number of customers who can take advantage of the offer, it also shows a commitment to the people who are putting themselves on the front lines during our current crisis, which should earn them goodwill from current and potential customers.

With takeout and delivery being the new normal (for now), some restaurants are encouraging customers to share photos and videos of themselves enjoying their takeout or delivery meals at home by using hashtags or tagging the restaurant. Some establishments are even encouraging customers to host virtual dinner parties and share their experiences online. It’s a feel-good boost for both your staff and your customers and lets you feel like you’re still together, even when apart.

Learning and adapting

There’s no question that this global pandemic has created unprecedented challenges for restaurants. But it’s also inspired many owners to innovate and adapt their restaurant business model. Restaurants able to brainstorm new revenue streams and marketing strategies now can not only boost their odds of surviving this crisis, they’ll also be able to conduct valuable testing to learn what marketing tactics might work best for them as life starts returning to some state of normalcy.

For more marketing ideas you can use during the COVID-19 era, download our free e-tool: “Coronavirus Era: 13 Restaurant Marketing Tips.”

*State and local laws vary, especially during these fast-changing times. Please check with your local advisors before implementing any new course of action.

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