CHERRY HILL, NJ – The pandemic has permanently altered the consumer-restaurant relationship with operators investing in technology and real estate to align with changing consumer preferences, according to the 2021 Restaurant Franchise Pulse survey, conducted by TD Bank, America’s Most Convenient Bank.
At the start of the pandemic, 72% of carriers invested in mobile / online delivery and orders to increase revenue during mandatory home orders according to the TD 2020 survey, and it looks like the popularity of these offers is there. to stay.
Investment in mobile delivery and ordering pays off
According to this year’s survey, restaurant owners’ early investments in mobile delivery and ordering have paid off.
â¢ 71% rely on delivery for 11% or more of sales
â¢ 33% rely on delivery for more than 20% of sales
â¢ 65% rely on mobile orders for 11% or more of sales
â¢ 25% rely on mobile orders for more than 20% of sales
To keep up with changing consumer preferences, operators noted that their main areas of investment in 2022 include mobile orders (54%); delivery services (47%); technology such as new digital point-of-sale signage or other in-store technologies (45%); and alternative payment methods (37%).
âConsumers have grown accustomed to the speed and convenience of mobile ordering and delivery, which in turn has changed the landscape for restaurant franchises,â said Mark Wasilefsky, Group Head of Restaurant Franchise Funding , TD Bank. âEven once there is no longer an active threat of a pandemic, consumers will still turn to these media. Mobile ordering and delivery has become a part of everyday life and is no longer a pleasant thing to have, but expected, and operators need to continue to improve these offerings to keep up with the competition. “
Restaurant real estate is changing to align with consumer preferences
In addition to deepening their technology investments, operators are also changing the physical location of their restaurants to accommodate delivery. While only 15% plan to reduce the number or size of their franchises, operators are making other adjustments to their building stock.
â¢ 55% plan to add more space for pickup
â¢ 45% plan to provide additional drive-thru locations
â¢ 43% plan to add an outdoor dining area on site
“What we are seeing is that the pandemic has permanently altered consumer expectations and behaviors to the point that operators are comfortable enough to make long-term capital investments,” Wasilefsky added.
Operators’ optimism and investment fuel future credit needs
Despite the challenges the restaurant industry has faced since the start of the pandemic, operators have learned to pivot and as a result 81% of those surveyed feel optimistic for the future. More than half even feel very optimistic and 47% think their income will increase significantly. This optimism and the planned investments of the operators lead to strong credit needs. In fact, 61% of respondents plan to apply for a loan or line of credit within the next year.
This study was conducted among a representative group of 251 restaurant franchise owners and operators across the United States from November 10-22, 2021. The survey was organized by global research firm ENGINE INSIGHTS.
About TD Bank, America’s Most Convenient Bank
TD Bank, America’s Most Convenient Bank, is one of the 10 largest banks in the United States, providing more than 9.7 million customers with a full range of personal, small business and business banking products and services in over 1,100 convenient locations in the Northeast, Mid-Atlantic, Metro DC, the Carolinas and Florida. In addition, TD Bank and its subsidiaries provide personalized private banking and wealth management services through TD Wealth Management, as well as vehicle finance and commercial services to dealerships through Financing. auto TD. TD Bank is headquartered in Cherry Hill, NJ To learn more, visit www.td.com/us. Find TD Bank on Facebook at www.facebook.com/TDBank and on Twitter at www.twitter.com/TDBank_US and www.twitter.com/TDNews_US.
TD Bank, America’s Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, one of the 10 largest financial services companies in North America. The Toronto-Dominion Bank trades on the New York and Toronto Stock Exchanges under the symbol “TD”. To find out more, visit www.td.com/us.