In their quest to enhance customer loyalty, PYMNTS Intelligence suggests that the surge in digital ordering is potentially broadening restaurants’ customer base beyond their immediate vicinity.
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GLOIn their quest to enhance customer loyalty, PYMNTS Intelligence suggests that the surge in digital ordering is potentially broadening restaurants’ customer base beyond their immediate vicinity.
In Statistical Terms
According to PYMNTS Intelligence’s research titled “Digital Divide: Restaurant Subscribers And Loyalty Programs,” derived from a survey encompassing over 2,000 U.S. consumers, it’s been found that less than half of all customers now base their restaurant choices on proximity.
The study disclosed that 46.9% of consumers consider a restaurant’s location as a contributing factor in their decision to patronize a specific eatery, and 49.5% indicated the same for quick-service restaurants (QSRs).
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Putting Data in Perspective
As the option for consumers to have food delivered to their location becomes more accessible, the inconvenience of traveling to a specific restaurant diminishes as a barrier. This change has been so noticeable that Domino’s, in an effort to encourage customers to make this shift, has introduced promotions that essentially reward customers for their delivery efforts by providing store credit when they opt for pickup.
Nevertheless, despite this incentive, a significant number of consumers continue to favor delivery services. For instance, DoorDash reported during its recent earnings call that in the second quarter, there was a 25% year-over-year increase in total orders, reaching a record 532 million within that three-month period. Similarly, the parent company of Grubhub, Just Eat Takeaway, highlighted in its earnings report last week that its North American business processed 69 million orders in the third quarter.
The grocery sector is undergoing a similar transformation, largely due to delivery platforms like Instacart.
“Instacart has removed the necessity for consumers to factor in distance when choosing where to buy their groceries,” as mentioned by PYMNTS’ Karen Webster in a feature. “Perhaps shoppers prefer using Instacart for shopping at the same store they would physically visit. However, they might also be inclined to explore a store they would otherwise neglect due to the inconvenience of a 40- to 50-minute round trip, which many now avoid.”
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