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Today’s diners want more, spend  less, like virtual restaurants

October 31, 2017

Today’s restaurateur had best be the type that literally thrives on competition because a new study shows that staying ahead in their business is increasingly about competing not only for share of plate, but also share of wallet from diners who demand more services, options and technology for less out-of-pocket. 

What's more, the survey and report from global business advisory firm Alix Partners said that a significant number of diners are ready to give their business to so-called "virtual restaurants."

The survey — conducted in Australia, Brazil, China, France, Japan, Mexico, Russia, Saudi Arabia, South Korea, the United Arab Emirates, U.K. and U.S. — found that more than a third of consumers plan to dine out more next year than they did this year, while just 19 percent said they plan to eat out less in the coming year.

But here’s the not-so-great news: Twenty-eight percent of survey respondents plan to eat out more often next year while spending no more than they did last year. And 26 percent said they will spend less.

Where will those dollars go instead? Far away, if most consumers have their choice; 40 percent said their money will go toward travel in the coming year, while 37 percent said it will go toward something other than food.

"Restaurant operators need to take aggressive steps to regain both market share and the mind share being lost to adjacent industries such as travel and retail," Alix Partners Global Restaurant, Hospitality and Leisure Practice Co-head Adam Werner said in a press release. "To compete globally, they must not only be aware of the consumer nuances across markets but also have sound strategies and concrete tactics in place to capture profitable growth potential where it exists."

'Bring it to me'

The survey also finds continued opportunity for delivery. Three-quarters (75 percent) of respondents want more delivery options, with 49 percent preferring direct delivery ordering from restaurants, rather than via third-parties, which only 12 percent preferred.

Additionally, 40 percent said they would order from "virtual restaurants" that do not have a dine-in of pickup option.  

"The consumer’s openness to virtual restaurants represents both challenge and opportunity for those operators ready and able to innovate," Werner said in the release. "On the one hand, it affords an opportunity to enter new markets to test adoption and concepts without overinvesting in upfront build. But on the other, brand and quality standards will need to be managed extremely tightly to avoid any collateral damage."