Technology

Is mobile solving the wait-time problem for restaurant brands?

These days of COVID-19 make it clear that customers will not stand for restaurant brands that make them wait. Limited-service restaurateurs that intend to survive and thrive must make flawless execution of the mobile ordering experience Priority No. 1.

Photo: iStock

November 6, 2020 by Emil Davityan — CEO and co-founder, Bluedot

Speed of service has always been essential to the business strategy of restaurant brands, especially those with drive-thrus and curbside pickup options, where long wait-times greatly diminish the customer experience. A shorter wait-time has the potential to grow revenue, boost loyalty and reflect positively on the brand. On the flip side, there's strong evidence to show long wait-times can have a dramatic impact on the bottom line, with substantial loss in potential revenue opportunities if diners turn to more efficient alternatives.

Now, more than eight months into the COVID-19 pandemic, drive-thrus are booming and there's a clear surge in curbside locations as Americans look for safer, contactless ways to order and pick up food. Thus, speed of service is now more important than ever and successful restaurant brands understand the value of improving wait-times. They recognize that the investment they make in reducing wait-times now will not only help increase revenue and gain market share today, but also will pay dividends long after the pandemic eases.

Every second counts

COVID has accelerated the popularity, importance and reliance on drive-thru and curbside pickup options. Whereas most businesses bottomed out during March of this year, drive-thru sales have held steady during that time frame, generating roughly $8.3 billion as reported by NPD research firm.

The latest State of What Feeds Us II report revealed customers increased visits to drive-thrus by 43% over the first three months of the pandemic. Nearly three out of four consumers are now visiting the drive-thru as often or more often than before, and 40% say they have increased their use of curbside pickup. However, long wait-times can cause a loss of revenue and have real brand implications.

SeeLevel HX's recent QSR drive-thru study found that the average time to get an order at fast food restaurants was 356.8 seconds (about six minutes), nearly 30 seconds slower than 2019. This slowdown is costing QSRs over $32,000 per store per year. That equates to hundreds of millions of dollars for large QSRs.

The State of What Feeds Us II report also found that the vast majority of consumers (81%) feel that waiting more than 10 minutes at the drive-thru is too long, while four out of 10 people said wait-times longer than just four minutes for curbside pickup is too long. Clearly, with drive-thru and curbside now the preferred — or sometimes only — options for low-to-zero contact, QSRs and restaurants with long wait-times risk losing customers. Shortening those wait-times could be the difference between thriving (or even surviving) and going out of business.

Similarly, in the study, some consumers chose "knowing when their order will be ready" as the most important factor when placing an order for pickup. However, this is another slippery slope, and restaurants need to understand what this really means. Consumers placing a mobile order want to know when their order will be ready so they can arrive at the right time withoutwaiting.

For restaurants that want to thrive, the message is clear. Shorter wait-times equal an enhanced customer experience. And improving operational efficiency, such as by ensuring timely order preparation and automating check-in when consumers enter the restaurant parking lot or drive-thru lane, can reduce wait-times and encourage customer loyalty.

The 10 minute mark isn't good enough — at least not if you want brand affinity and growth.

'Grab-and-go' on the customer's terms

Successful restaurants and QSRs are not standing still and are implementing new strategies to reduce wait-times and improve customer experiences. Dunkin' Donuts has expanded its use of mobile ordering, curbside pickup, and delivery with 4.2 million active users on the company's digital platform, accounting for 21% of transactions. As QSRweb reported in an August interview with COO Mike Grams, Taco Bell will be focusing on a new mobile-first and drive-thru strategy by offering diners the option to order ahead on the company's mobile app and go through a dedicated, priority drive-thru lane for increased speed

Panera has also added geofencing technology to make curbside quicker and meet the demand for contactless transactions, as sister site, Fastcasual.com reported in May. The geofence creates a virtual perimeter around a restaurant parking lot, and when a customer who has placed and paid for a mobile order crosses this perimeter, the restaurant employees are automatically alerted and can bring the order to the vehicle.

It's important to recognize that the implications of shorter wait-times in the age of COVID-19 extend beyond the traditional drive-thru lane and curbside pickup — especially for restaurants that were not designed to accommodate these capabilities. For example, pretzel chain Auntie Anne's introduced online ordering and delivery to reduce its dependence on mall traffic and take advantage of the trend to shop by mobile device or computer.

We can't predict how long COVID-19 restrictions will last, and we really don't know what "normal" will look like when we finally get there. The lines between on-premise and off-premise are being blurred and mobile is the bridge. One thing is clear: restaurant interactions that reduce contact, friction and wait-times will provide a significant competitive advantage. All of these strategies have one thing in common: They use mobile and digital to remove friction from ordering, payment and pickup so brands can serve more customers faster and more safely in the face of today's challenges.