Pent-up demand
While there’s little question consumers will be cautious in those early reopening days, the other side of the equation is that they’ll also be itching to get out of the house and back to normal routines. Restaurants have always provided this cost-effective outlet for people.
Datassential found that more than half of diners would at least consider dining in at a restaurant right away after it reopens. Males, millennials, and households with kids were more likely to be jump the eating-out gun. It suggests the true share fight for restaurants might not be inspiration, but retention. Making sure they’re doing all the right things to inspire a repeat visit. That’s where the trust element will really develop in the upcoming weeks and months.
“How would you feel about dining in at a restaurant right away once they reopen?”
- 41 percent: There’s no way I would consider dining in right away
- 39 percent: Might consider dining in right away
- 20 percent: Absolutely would dine in right away
Gen Z:
- Absolutely: 25 percent
- Might: 46 percent
- No way: 30 percent
Millennials
- Absolutely: 31 percent
- Might: 35 percent
- No way: 34 percent
Gen X
- Absolutely: 18 percent
- Might: 37 percent
- No way: 44 percent
Boomers
- Absolutely: 10 percent
- Might: 42 percent
- No way: 48 percent
As the days go on, this next group of data could change. Or it could stay the same. Like all COVID-19 things, it’s a bit of a mystery. But whether or not America emerges in a recession is something all restaurants should monitor as they begin to plot their menu calendars. Value might shift back to 2008 aims, and split away from what we’ve seen in recent years, which is a movement toward check building via a la carte offerings and barbell approaches that favor premium items to leverage a more willing consumer. This concept was born out of an oversaturated industry in recent years that saw traffic slide throughout the restaurant lexicon.
Brands were covering fewer transactions with higher checks, and doing so by raising prices alongside strategies to upsell (think kiosks, suggestive selling tech at the drive thru, etc.)
Right now, though, with almost half of Americans feeling May 1 is too soon to reopen businesses, it’s not surprising that consumers are most hesitant about dining in for health and safety reasons. The financial topic could surface in force later.
“If restaurants were to reopen for dining in on May 1, what would be the biggest factor preventing you from eating inside a restaurant?”
- 74 percent: Safety/health
- 14 percent: Finances
- 12 percent: Neither
How will this unfold?
When asked whether their first trip back to a dining room should be a quick, streamlined affair to minimize their risk of exposure to COVID-19 or a full-length dining experience, consumers were split across all demographics, Datassential said. There was one notable exception. People who indicate they “absolutely” would return to restaurants right away tend to want the entire eating experience they’ve been missing. Those who would return right away nonetheless think restaurants should speed things up to make dining out safer.
This is a positive spin for full-service restaurants, which have taken the brunt of transaction loss since COVID-19.
The NPD Group reported Monday that, in the week ending April 19, the sit-down segment saw a 72 percent decline in transactions versus a 79 percent drop the prior week. The rate of decline for casual dining improved 12 points from a decline of 77 percent in the week ending April 12 to 65 percent the week ending April 19.
Quick service, meanwhile, was down “just” 34 percent.
“Would you want a faster, streamline dining experience or a full-length dine-in experience with safety measures in place to make you feel safe and comfortable?”
- 51 percent: Full-length dine-in experience (63 percent among those willing to dine in right away)
- 49 percent: Faster dine-in experience
The two-way street with restaurants
Datassential said consumers expect restaurants to maintain a safe environment once reopened. People will do their part as well, and won’t be quick to abandon COVID-19 learned behaviors, like social distancing and extra sanitizing. Many said they would also avoid open and uncooked foods.
Consumers ready to dine right away put more trust in restaurants, while those who “might consider” feel safer taking extra precautions.
Simply, restaurants shouldn’t abandon their COVID-19 learned practices, either. What operational changes manifested during this time, from accelerated in-store cleaning measures to employee wellness checks, need to linger past reopening dates. And customers want to see all of it in action.
“What measures would consumers adopt to minimize risk at sit-down restaurants?”
Wash hands more frequently
- Total: 86 percent
- I would dine-in right away (group): 70 percent
- No way I’d dine-in right away (this is the group to keep in mind when it comes to winning over or winning back customers. It’s where the biggest whitespace lies): 91 percent
Maintain distance from other diners
- Total: 86 percent
- I would dine-in right away: 69 percent
- No way I’d dine-in right away: 92 percent
Avoid crowded waiting areas
- Total: 83 percent
- I would dine-in right away: 63 percent
- No way I’d dine-in right away: 90 percent
Avoid restaurants with “open” food
- Total: 79 percent
- I would dine-in right away: 61 percent
- No way I’d dine-in right away: 88 percent
Disinfect/wipe down surfaces
- Total: 66 percent
- I would dine-in right away: 53 percent
- No way I’d dine-in right away: 75 percent
Avoid ordering raw/uncooked foods
- Total: 64 percent
- I would dine-in right away: 52 percent
- No way I’d dine-in right away: 71 percent
Avoid ordering shared foods
- Total: 59 percent
- I would dine-in right away: 52 percent
- No way I’d dine-in right away: 69 percent
Maintain distance from others in my party
- Total: 52 percent
- I would dine-in right away: 47 percent
- No way I’d dine-in right away: 58 percent
Wear gloves/masks to and inside restaurants
- Total: 44 percent
- I would dine-in right away: 42 percent
- No way I’d dine-in right away: 55 percent
Bring own utensils, straws, and pens
- Total: 35 percent
- I would dine-in right away: 43 percent
- No way I’d dine-in right away: 38 percent
What should your restaurant do?
This is going to be a balancing act. How can restaurants show they’re taking every safety precaution necessary yet not make the experience unsettling?
Datassential said diners appear appreciate of just about anything that keeps them away from others and minimizes exposure to COVID-19. Yet they’re resistant to tactics that get too personal, like requiring proof of wellness or taking temperatures.
“As you might expect, the most risk averse are supportive of almost anything that reduces the possibility of exposure,” Datassential said. “Because the ‘might considers’ evaluate each situation and are open to social distancing and sanitation efforts, restaurants that demonstrate extra precautions in these areas are more likely to win their business.”
“Which would you support to ensure your safety dine in at a restaurant?”
6 feet or more distance required
- Total: 85 percent
- I would dine-in right away: 68 percent
- No way I’d dine-in right away: 92 percent
Customers sanitize hands upon entering
- Total: 81 percent
- I would dine-in right away: 66 percent
- No way I’d dine-in right away: 88 percent
Customers at bar must have a seat
- Total: 81 percent
- I would dine-in right away: 69 percent
- No way I’d dine-in right away: 88 percent
Must wait outside if waiting for a table
- Total: 73 percent
- I would dine-in right away: 58 percent
- No way I’d dine-in right away: 82 percent
Seating by reservation only
- Total: 69 percent
- I would dine-in right away: 58 percent
- No way I’d dine-in right away: 78 percent
No physical menus
- Total: 65 percent
- I would dine-in right away: 57 percent
- No way I’d dine-in right away: 75 percent
Customers temperature taken upon entering
- Total: 61 percent
- I would dine-in right away: 56 percent
- No way I’d dine-in right away: 66 percent
Customers required to show proof of wellness
- Total: 41 percent
- I would dine-in right away: 44 percent
- No way I’d dine-in right away: 46 percent
What will people put up with?
Restaurants should enjoy some leeway early on, not unlike how people are waiting in line to enter grocery stores with customer limits today. While most support strategies that might inconvenience them to a degree, like pre-ordering before seating or cashless payments, they don’t rank as high as social distancing maneuvers.
“Taking extra precautions that don’t require the diner to be too inconvenienced may help to coax the more wary to start dining in sooner,” Datassential said.
“Which would you support to ensure your safety dining in at a restaurant?”
Staff member enforcing capacity at the door
- Total: 83 percent
- I would dine-in right away: 68 percent
- No way I’d dine-in right away: 91 percent
Pickup customers wait outside
- Total: 77 percent
- I would dine-in right away: 60 percent
- No way I’d dine-in right away: 86 percent
No large groups allowed
- Total: 76 percent
- I would dine-in right away: 60 percent
- No way I’d dine-in right away: 86 percent
Allow takeout only
- Total: 75 percent
- I would dine-in right away: 54 percent
- No way I’d dine-in right away: 87 percent
Seating by pre-order only
- Total: 67 percent
- I would dine-in right away: 54 percent
- No way I’d dine-in right away: 76 percent
Vulnerable customers allowed certain times to dine in
- Total: 63 percent
- I would dine-in right away: 56 percent
- No way I’d dine-in right away: 71 percent
No cash payment accepted
- Total: 59 percent
- I would dine-in right away: 54 percent
- No way I’d dine-in right away: 67 percent
Customers required to wear masks when not eating/drinking
- Total: 52 percent
- I would dine-in right away: 48 percent
- No way I’d dine-in right away: 63 percent
What does your restaurant need to do?
When it’s time to reopen, just like before COVID-19, restaurants will start to separate themselves from the pack with top-notch operations. Customers want to see the basics. Now, beyond just thorough and frequent cleaning, people will also seek out assurance of healthy staff and steps to social distance. The extras don’t hurt, either.
“How do consumers feel about the following safety measures?”
Common areas deep cleaned daily
- People like it: 94 percent
- People require it: 76 percent
Surfaces sanitized after every meal
- People like it: 94 percent
- People require it: 76 percent
Disinfect or dispose menu each time
- People like it: 92 percent
- People require it: 68 percent
Sick staff need to be tested for COVID-19 before returning
- People like it: 91 percent
- People require it: 65 percent
6 feet or more between tables
- People like it: 93 percent
- People require it: 64 percent
6 feet or more in common areas
- People like it: 99 percent
- People require it: 63 percent
Sanitizer/wipes at every table
- People like it: 92 percent
- People require it: 65 percent
Staff must take temperature
- People like it: 90 percent
- People require it: 61 percent
Staff member at door to manage traffic
- People like it: 91 percent
- People require it: 57 percent
No shared condiment bottles
- People like it: 88 percent
- People require it: 55 percent
Double-wash dishes, glasses, and utensils
- People like it: 89 percent
- People require it: 52 percent
No cloth napkins used
- People like it: 86 percent
- People require it: 51 percent
Only sealed/wrapped utensils used
- People like it: 89 percent
- People require it: 49 percent
Waitstaff wear masks and gloves
- People like it: 85 percent
- People require it: 47 percent
Contactless payment
- People like it: 87 percent
- People require it: 44 percent
Only serve sealed beverages
- People like it: 81 percent
- People require it: 44 percent
Laid-off/furloughed employees rehired
- People like it: 88 percent
- People require it: 43 percent
Pre-order so food is ready when you arrive
- People like it: 79 percent
- People require it: 35 percent
Does it matter if you reduce your menu?
Many restaurants will take this approach as they try to restock and get staff back in order. Also, as they take the pulse of how much business they’ll truly be doing under regulatory changes.
“How do you feel about restaurants offering a reduced menu initially?”
- I have no problem with this: 76 percent
- I would be disappointed: 24 percent
The latest is greater among Gen Z (43 percent), singles (30 percent) and people who would ine out right away (84 percent). The first is higher among boomers (87 percent) and those unwilling to dine out right away (84 percent).
