Table of Contents
Executive Summary
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- Key takeaways
- The issues
- Many consumers still prefer humans to kiosks
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- Figure 1: Kiosk barriers, May 2019
- There’s low consumer interest in fully automated restaurants
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- Figure 2: Interest in on-premise technology concepts and attitudes around on-premise technology, May 2019
- Legislation creates growing barrier to seamless technology
- The opportunities
- Mobile app-based loyalty programs offer a huge opportunity for personalization
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- Figure 3: On-premise technology experience, May 2019
- On-premise tech meets consumers’ growing need for speed
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- Figure 4: Kiosk motivators, May 2019
- Pre-ordering and pre-payment service for dine-in could boost FSR business
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- Figure 5: Interest in on-premise technology concepts, by age, May 2019
The Market – What You Need to Know
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- A highly competitive labor market and need for speed give rise to on-premise technology
- Growing off-premise business and tech could diminish the ROI of on-premise tech
Market Perspective
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- Seamless retail expands
- Off-premise tech continues to show strong growth
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- Figure 6: Restaurant delivery usage in the past three months, June 2016 and September 2018
Market Factors
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- Labor wars continue
- Low unemployment rates mean increased competition
- Minimum wage laws
- What does it all mean?
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- Figure 7: Unemployment and underemployment, January 2007-May 2019
- Consumers increasingly prioritize speed at restaurants
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- Figure 8: Dining out occasion motivators, July 2018
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- Figure 9: Dining out occasion motivators, by parental status, July 2018
- Figure 10: QSR Visitation Drivers, February 2019
- Consumers are amenable to new technologies
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- Figure 11: Attitudes toward technology – NET agreement, February 2019
Key Trends – What You Need to Know
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- AI breaks out, with ample room for future innovation
- Laws set limits on cashless operations and facial recognition tech
- Tech offers opportunity for FSRs to catch up
What’s Working?
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- AI breaks out in foodservice
- Mobile-based loyalty apps
- Self-service alcohol
What’s Struggling?
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- Cashless concepts
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- Figure 12: Legacy Food Hall’s Hall Pass
- Fully automated stores
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- Figure 13: Wow Bao’s fully automated front-of-the-house store opened in summer 2018 using Eatsa’s cashless technology
What’s Next?
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- Order- and pay-ahead for FSRs
- Tableside payments
- Customization 2.0: AI activates personalization
The Consumer – What You Need to Know
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- On-premise technology’s benefits outweigh its drawbacks
- Consumers are very interested in mobile-based loyalty programs
- Consumers are wary of newer on-premise technologies, such as fully automated restaurants and facial recognition tech
On-premise Technology Experience
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- Most consumers are either using or interested in a mobile-app-based loyalty program
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- Figure 14: On-premise technology experience, May 2019
- Young parents are among the heaviest users of on-premise tech
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- Figure 15: On-premise technology experience – NET, any usage of tablets or kiosks, by CHAID analysis, May 2019
- Men are heavier kiosk users than women
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- Figure 16: On-premise technology experience – NET, any usage, by gender, May 2019
- Millennials lead in mobile-app loyalty program usage
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- Figure 17: On-premise technology experience – NET any usage, by generation, May 2019
- White and Hispanic consumers drive on-premise tech-based payments
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- Figure 18: On-premise technology experience – NET any usage, by race and Hispanic origin, May 2019
Kiosk Motivators
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- Most consumers choose kiosks for speed and convenience
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- Figure 19: Kiosk motivators, May 2019
- Kiosks can help boost check averages among young consumers
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- Figure 20: Kiosk motivators, by age, May 2019
Kiosk Barriers
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- Preference for human interaction is the top barrier to kiosk usage
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- Figure 21: Kiosk barriers, May 2019
- Kiosks that don’t accept cash detract some young consumers
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- Figure 22: Kiosk barriers, by age, May 2019
Technology Associations by Restaurant Segment
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- On-premise tech is most closely associated with fast food and casual dining
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- Figure 23: Technology Associations by Restaurant Segment, May 2019
- Kiosks strongly resonate with LSRs, and tablets with FSRs
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- Figure 24: Technology Associations by Restaurant Segment – NET segment type, May 2019
Mobile-app-based Loyalty Program Motivators
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- Many consumers are motivated by ongoing discounts from mobile-based loyalty programs
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- Figure 25: Mobile-app-based loyalty program motivators – NET any rank, May 2019
- Gen Z is most likely to be encouraged by subscription-style, mobile-app loyalty programs
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- Figure 26: Mobile-app-based loyalty program motivators – NET any rank, by generation, May 2019
- Lowest-income consumers value personalization from mobile-app loyalty programs
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- Figure 27: Mobile-app-based loyalty program motivators – NET any rank, by income, May 2019
- Ongoing discounts appeal to majority of White consumers
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- Figure 28: Mobile-app-based loyalty program motivators – NET any rank, by race and Hispanic origin, May 2019
Attitudes around On-premise Technology
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- Consumers are notably interested in tableside payment
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- Figure 29: Attitudes around on-premise technology, May 2019
- Gen Z appreciates tech-based personalization on premise
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- Figure 30: Attitudes around on-premise technology, by generation, May 2019
- Technology is a restaurant visitation driver for Hispanics
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- Figure 31: Attitudes around on-premise technology, by race and Hispanic origin, May 2019
Interest in On-premise Technology Concepts
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- Consumers are still relatively wary of innovative on-premise tech
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- Figure 32: Interest in on-premise technology concepts, May 2019
- Women are particularly interested in dedicated drive-thru lanes for mobile orders
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- Figure 33: Interest in on-premise technology concepts, by gender, May 2019
- FSRs can attract young consumers by allowing them to order and pay online before dine-in meals
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- Figure 34: Interest in on-premise technology concepts, by age, May 2019
- Asian consumers are the most interested in fully automated service and integrated restaurant kiosks
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- Figure 35: Interest in on-premise technology concepts, by race and Hispanic origin, May 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – The Consumer
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- CHAID Analysis Methodology
- TURF Analysis Methodology
Appendix – The Market
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- Figure 36: Total US revenues and forecast of restaurants and eating places*, by segment, at current prices, 2018 and 2023
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