New Dining Survey Finds Biggest Disparities
between Millennials, Gen-Xers, and Baby Boomers Exist in Use of
Digital Customer Service Platforms, Tipping Preferences, and Social
Media
Digital technology, including emerging trends in online ordering
and delivery services, tabletop ordering, and the influence of
social media, is changing the way consumers discover, interact with
and experience restaurants, according to the 2017 American Express
Restaurant Trade Survey. While diners’ appetites for new technology
vary widely by generation, Millennials are leading the charge in
favoring and adopting new dining preferences that blend the
convenience of technology with social conscious trends, including
food waste reduction and a preference for locally-sourced
ingredients.
Take-Out Tech to Grow
Millennial consumers are more likely than any other generation
to order take-out using a mobile app or website, according to the
survey, which covers a wide array of consumer trends impacting the
restaurant industry. For example, Millennials were twice as likely
(62%) than Baby Boomers (28%) to have used a restaurant’s mobile
app or website to order take-out in the past month. When it comes
to ordering and delivery services like Grubhub and Seamless,
Millennials are significantly more likely (58%) to have used such a
service than Gen-Xers (35%) or Baby Boomers (21%). Restaurant
operators are taking notice. Twenty-four percent of restaurateurs
currently use an online ordering and delivery platform like Grubhub
or Seamless, and another 31% say they are planning to or are
considering adopting such services. Additionally, 24% of
restaurateurs are currently offering the ability to order ahead
through their own website or mobile app, and another 42% plan to or
are considering adopting the technology.
“The survey results confirm what we’ve long heard, especially
from our Millennial diners: that consumers value being able to
order the foods they love, on mobile or desktop, from their
favorite local restaurants,” said Stan Chia, chief operating
officer, Grubhub. “Online ordering and delivery not only meet the
expectations of today's busy, convenience-minded diners, but also
drive order volume and increase revenue for restaurants. A trusted
partner is essential to ensuring that restaurateurs spend their
time making food and focusing on the diner experience, rather than
managing and delivering orders.”
To Tip or Not To Tip
Consumers’ tipping practices and preferences also differ by
generation. In recent years, some Restaurateurs have discouraged
tipping or adopted policies that do away with the practice in their
establishments, usually in favor of higher wages for the servers.
According to the survey, 15% of restaurants have already adopted or
plan to adopt a no-tipping policy, and 14% said they might
eliminate tipping if their competitors do. At the same time, the
majority of consumers (63%) say they prefer being able to tip their
server. However, when broken down by generational groups,
preferences differed. Millennials are the generation most likely to
prefer not to continue tipping (46%) compared to Gen-Xers (34%) and
Baby Boomers (32%). However, Millennials were more likely (18%) to
support having a service charge added to their bills in lieu of a
tip than Gen-Xers (8%) or Baby Boomers (6%). Additionally, when
paying with a credit or charge card, the majority of customers
(59%) will add the tip to their card. Millennials, however, are
more likely to leave a cash tip when paying with a credit or charge
card (46%) than Gen-Xers (36%) or Baby Boomers (36%).
Diners More Likely to Post about their Plate than their
Date
Social media is a key component of the dining experience for
consumers. Among diners who post about their restaurant experiences
on social media, they are nearly twice as likely to post photos of
their meal/drink (16%) than the people they are dining with (9%).
Millennials also stand out in this category – nearly three-quarters
(72%) will post about their restaurant experience on social media,
including one-quarter (25%) who will post photos of their
meal/drink. It’s no surprise, then, that 83% of restaurateurs view
social media as having a very or somewhat positive impact on their
business, and a majority use some type of social media promotion
for their business, most frequently Facebook (85%) and Instagram
(46%).
With a Positive Financial Outlook, Restaurateurs Plan Tech
Investments & Hiring; Fight Food Waste
Overall, restaurant operators are generally positive about the
future. More than half (54%) say revenues are greater than they
were one year ago, and nearly three-quarters (72%) are expecting a
continued increase during the next 12 months. Part of this optimism
is reflected in planned technology investments – two-thirds (65%)
have plans for tech investments in the next 12 months – as well as
hiring – more than eight-in-ten plan to hire both front and back of
house staff in the next year (83%, each).
Innovations are being planned to stay competitive as well,
particularly in restaurants’ ability to combat food waste and make
better use of local ingredients:
- Half of restaurant owners/managers
believe food waste has a significant impact (48% very/somewhat) on
their restaurant’s profitability, and most are taking some measures
for reducing it.
- 38% of restaurateurs are repurposing
ingredients or offering special menu items made with excess
food.
- Six-in-ten evaluate their inventory
(61%) or train staff on waste reduction (59%), and over half (53%)
monitor the portion sizes they provide to their customers to reduce
waste.
- When it comes to locally-sourced
ingredients, 44% of restaurants currently use them, and another
four-in-ten are either planning to (15%) or are considering doing
so (24%)
Diners agree. More than half of consumers (56%) believe that it
is important for a restaurant to use locally-sourced ingredients in
their menu. Like restaurant owners, they too don’t want to see
their food go to waste. The vast majority of diners (83%) say they
ask to have their leftover food wrapped. For some, making leftovers
their actual in-restaurant meal is not off the table – 27% percent
of consumers are likely to order a meal made from leftover
ingredients. When focusing on generational groups, Millennials are
more likely to embrace this concept (39%) than Gen-Xers (24%) and
Baby Boomers (19%).
Tech at the Table: Keeping the Human Touch in a Digital
World
Restaurants are increasingly turning to digital technology to
enhance customers’ dining experiences. Currently, 7% of restaurant
owners/managers use automated customer service technology such as
digital kiosks or table-side ordering. However, that trend is
expected to grow as 26% say they plan to or are considering
adopting this technology in the future. While the majority of
consumers (75%) favor a restaurant with traditional wait staff who
can provide in-person service, 25% say they prefer restaurants with
digital customer service platforms. That percentage is even higher
for Millennials (39%). This disparity shows that restaurants should
strongly consider their target customer base, or pairing
traditional customer services with the convenience of technology at
the table, when deciding how to augment their approach to servicing
with technology.
About American Express
American Express is a global services company, providing
customers with access to products, insights and experiences that
enrich lives and build business success. Learn more at
americanexpress.com and connect with us on
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linkedin.com/company/american-express, twitter.com/americanexpress,
and youtube.com/americanexpress.
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Survey Methodology
Consumer data for the 2017 American Express Restaurant Trade
Survey is based on a sample of 1,016 respondents weighted to U.S.
census based upon gender, age, education, race and region. Unless
otherwise noted, responses among consumers represent those who have
visited a restaurant in the past month based on self-reported
responses. The anonymous survey was conducted online April 13-17,
2017. Restaurant owner/manager data is based on an online study
conducted among a sample of 488 respondents who are
owners/managers/directors/CEO/etc. of an independently owned
restaurant, and are involved in at least two of the following
areas: Finance/HR/IT/Operations. The sample for the study came from
an online panel. Invitations to participate in the study were sent
beginning on April 20, 2017 and data collection continued through
May 1, 2017.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170522005910/en/
American ExpressAndrew Johnson,
212-640-8610andrew.r.johnson@aexp.com
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