May 2020

TECH TALK
Technology is the engine that drives all of the
above trends — from the delivery boom to
the rise in dealing. But technology also facilitates
additional trends, such as touchless payment,
which currently accounts for less than
two per cent of all transactions. This form of
payment is expected to climb as consumers
continue to exercise caution around touching
surfaces in public places or handling money.
Pre-ordering has also risen in popularity,
even before the COVID-19 crisis began. In
fact, digital orders currently account for six
per cent of all restaurant dollars and have
been climbing faster than any other segment
of the market for about three years.
Customer interaction through social media
allows restaurants to communicate with
their customers, even if they are closed or on
reduced service through this crisis.
LOCATION, LOCATION, LOCATION
According to the NPD Group ReCount census
of restaurant locations, there are approximately
65,000 commercial restaurants in Canada. And,
while independent restaurant counts peaked in
2008 — followed by declines every year since
— chains continue to grow, although the overall
number of restaurants is down about 7,000,
or just under 10 per cent in about 10 years.
Restaurants Canada suggests another 10 per
cent closed at the start of this crisis and many
more are on the verge of shuttering.
Amid these closures, independents have
actually grown share of visits in recent years
and those remaining open are stronger
than ever as consumers gravitate towards
the unique and authentic dining experiences
offered by independent operators. In
fact, a recent study completed in the U.S. by
CivicScience indicates consumers are looking
for ways to support their local businesses during,
and after, this crisis. While this is a difficult
time for independent restaurants, those
able to survive the hardship should come out
stronger on the other side.
A NEW OUTLOOK
Now, more than ever, restaurateurs need
to realize going out to a restaurant is not
just about the food. If it were, restaurants
wouldn’t be suffering as much as they are
right now because we still need to eat. Instead,
eating out is about the experience. It’s all
about spending time with friends and family,
enjoying a night out and soaking in the ambiance.
The functional side of eating out — the
food — is further down on the list. In fact, a
recent study completed by The NPD Group
in the EU confirms going to a restaurant is
one of the first things that many plan to do as
soon as they’re able.
SUMMING UP
During this crisis, it’s important for operators
to focus on their core. Understand your customer,
why they visit and how your restaurant
is different and unique. Continue to do what
you do — only better than ever. But don’t be
afraid to try new things to stay relevant and
current, as long as they remain aligned with
your core offerings. FH
Vince Sgabellone is
a foodservice
industry analyst with
The NPD Group. He can
be reached at vince.
sgabellone@npd.com
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8 FOODSERVICE AND HOSPITALITY MAY 2020 FOODSERVICEANDHOSPITALITY.COM