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With the rise of menu costs and delivery services, according to NPD Group, individual spending habits will increase by 5% by 2020. This does however mean that diners are set to eat out less.
So, with this decrease in visits, when guests do venture out where are they most likely to spend their money? A casual dining chain is perhaps the safest bet with the promise of consistency from both staff and food.
In addition, these chains have jumped on the recent delivery market boom which has seen a massive increase in how guests like to spend their money. With their own delivery apps and third-party partners, guests can order from the comfort of their own home, save on drink and travel costs, whilst in the trust they will receive the product consistency that comes with eating at a casual dining chain.
So, what does this mean for independents? Like the rest of the industry, produce and staff costs are set to increase and without instant brand trust what can they do to attract guests? Our research has revealed that 52% of guests order a takeaway once a month and 79% of guests would use a takeaway service if a restaurant offered it. So, whether you set up your own service or partner with a third-party company, delivery is becoming essential to survive in today's market.
It might be worth considering some serious discounts to get guests through the door and remind them how great you are. Large cinema chain, Vue Cinemas recently dropped their ticket prices after a decline in sales with the impact of Netflix and Sky Movies in which guests can pay a fraction of the cost to download the latest movies at home. Their tickets have seen a significant drop to £5 leaving competitors out of pocket with prices at £13 a ticket and so the move has been well worth it.
One thing guests love is an experience, and they will always be willing to pay for one no matter what so if you focus on making your guest experience great, with some competitive prices, guests will still choose your venue.
To discuss how we can support you with your guest experience at both your sites and via delivery, get in touch with our new business team today on 01225 470999 or email enquiries@hgem.com.
