OPINIONFinancing

Consumers' return to pre-pandemic dining stalls as lifestyles have shifted

Technomic's Take: Consumers are not just choosing between one restaurant or another. They're often deciding if it's worth leaving the house.
Working from home
Consumers' lifestyle changes, such as working from home, have fundamentally changed their dining choices. / Photograph: Shutterstock.

Technomic's Take

At Technomic, we’ve been regularly surveying consumers about shifts in dining preferences and behaviors caused by the pandemic since March 2020, meaning we have a lot of data as we’re coming up on three years of pandemic-focused research.  But one data point in particular has been stuck in my mind for the last few quarters–the number of consumers that have not yet returned to pre-pandemic restaurant behavior.

Technomic has been asking consumers if they’re ordering from restaurants as much as they did before the pandemic. I expected the percentage of consumers who have returned to their pre-pandemic restaurant ordering habits to slowly grow once restaurants reopened, the vaccine was distributed and COVID-19 rates declined – and it did.   

However, this momentum has stalled. The percentage of consumers ordering as if it was 2019 has been stubbornly hovering at about 55%-60% quarter after quarter. Why hasn’t this number budged?  Is it high prices? Is it concern over catching COVID-19?  Or something else?  Something more intangible? I wasn’t sure, so I asked.  

Turns out, in addition to cost and COVID-19, it does have a lot to do with that “something else.” Nearly half of those consumers not dining out like they used to say that their lifestyle has changed, and they just don’t go out as much as they used to.  

How can an operator address something as large and complex as a societal shift in the way people spend their time?  Make them want to spend their time (and money) at your restaurant.

Now that you’re done rolling your eyes at this simplistic advice, I’ll mention a key theme that emerged at this week’s Restaurant Innovation Summit hosted by the Wisconsin Restaurant Association. I heard from numerous operators how, among the many issues that operators are faced with, customer experience has taken its rightful place again as a top focus in their business, especially now that they’re shifting away from survival mode.

“So many things are out of our control,” said Tom Anderson, owner/operator of Buck & Honey’s which has three locations outside Madison, WI. “What is in our control is within our four walls”.  Buck & Honey’s is focused on an overall experience that leaves a lasting impression on the guests, “How do guests feel when they leave? If they feel great, they’ll remember and they’ll come back.”

As reported in last week’s Technomic Take, customer satisfaction is declining, so it’s critical that operators understand and address the shortcomings their guests are experiencing. As part of the decision-making process, for actions large and small that impact customer experience, operators should be asking themselves one simple question, “would I leave the house for this?” and adjust accordingly.

For more information, please reach out to Technomic at info@technomic.com or technomic.com. Technomic is a sister company of Restaurant Business.

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