The restaurant industry is undergoing a digital transformation.
\nWhile the evolution is being driven by a growing demand by customers for seamless, efficient and personalized experiences, innovations in payment technologies are at the transformation\u2019s center \u2014 and will define its future.
\n\u201cToday\u2019s diners want a seamless experience that\u2019s quick and super easy. This includes digital perks like online reservations, viewing menus via the QR code, receiving alerts and customer surveys to their devices, and paying with a digital wallet,\u201d Tatia Adams Fox, vice president and general manager for U.S. travel and entertainment merchants at American Express, told PYMNTS during a conversation centered on findings from the report \u201cWhy More Restaurants Need to Bite Into Digital Transformation\u201d which was produced by PYMNTS Intelligence in collaboration with American Express.
\nThe convenience and speed offered by these payment technologies are becoming indispensable in enhancing the dining experience, she added.
\nThat\u2019s why developing convenient and seamless digital payment and ordering capabilities should be top of mind for all restaurants looking to cater to their customers\u2019 preferences as well as support their own operational and business needs, she said. As they explore new technologies, restaurants will still need to carefully consider how to integrate these tools and ensure their own brands can stand out from a more crowded pack.
\nOn the business side, restaurants are equally driven to embrace innovation by the need to keep up with diners\u2019 emerging behavioral demands.
\nAccording to American Express\u2019 latest Digital Payment Trendex, 27% of consumers surveyed said they always or almost always use mobile wallets and/or apps on a smartphone for in-store purchases. Merchants are responding in kind, as 68% of merchants surveyed already accept mobile wallet payments, and an additional 30% plan to adopt them within the next year or would consider adopting. Similarly, merchant-branded payment apps have witnessed an increase, with 40% offering their own payment apps, compared to 29% in 2021.
\nAs Fox noted, this indicates a readiness among merchants and consumers to adopt new technologies that can enhance customer satisfaction. Modern solutions are available that cater to both customer experience and back-end operations.
\n\u201cIn full-service restaurants, a huge portion of the hospitality opportunity is at the table and how the staff engages with the diners before, after and during \u2014 meaning there are significant opportunities to enhance the service, with touchpoints supported through user-friendly technology,\u201d Fox explained.
\nShe highlighted platforms like Resy, which not only facilitate reservations but also offer additional functionalities.
\n\u201cFor example, Resy can help restaurants upgrade the front end of the house experience while providing value behind the scenes,\u201d Fox said.
\nResy enables customers to use major credit cards and allows American Express card members to pay their bills using Membership Reward points through Resy Pay. Via Resy, operators can deploy surveys directly to customers using the reservation system, enabling direct communication based on customer feedback.
\n\u201cBy adopting modern payment solutions, restaurants can provide a seamless experience for diners as well as operators on the back end,\u201d Fox said, noting that for businesses looking to implement new payment solutions, it is crucial to determine the options that best fit their unique needs.
\nRestaurants must be creative in how they work to stand out within the crowded dining landscape.
\nFor restaurant operators exploring new payment solutions and innovations, Fox\u2019s advice is to maintain a keen understanding of customer preferences and stay informed about technological advancements.
\n\u201cThe advice I would give restaurant operators in staying abreast is to stay open-minded, stay up to date with your customers\u2019 needs, and stay on top of relevant technology and trends,\u201d she said. \u201cIn this way, restaurants can focus on what they do best, and that\u2019s serving the diners and providing them with best-in-class service.\u201d
\nAs for the relevant technology trends out there today, restaurants have access to solutions that help automate transactions, streamline cash flow management and prevent late payments and invoicing inaccuracies. Payment partners like American Express can assist by offering access to consolidated tools and solutions, making the digitization process easier, Fox said.
\nThe more restaurants continue to adopt modern payment solutions and stay attuned to customer preferences, the better positioned they will be in the competitive restaurant industry.
\nThe post Amex: Restaurant Sector Digital Payment Innovation Helps Meet Diner Demands appeared first on PYMNTS.com.
\n", "content_text": "The restaurant industry is undergoing a digital transformation.\nWhile the evolution is being driven by a growing demand by customers for seamless, efficient and personalized experiences, innovations in payment technologies are at the transformation\u2019s center \u2014 and will define its future.\n\u201cToday\u2019s diners want a seamless experience that\u2019s quick and super easy. This includes digital perks like online reservations, viewing menus via the QR code, receiving alerts and customer surveys to their devices, and paying with a digital wallet,\u201d Tatia Adams Fox, vice president and general manager for U.S. travel and entertainment merchants at American Express, told PYMNTS during a conversation centered on findings from the report \u201cWhy More Restaurants Need to Bite Into Digital Transformation\u201d which was produced by PYMNTS Intelligence in collaboration with American Express.\nThe convenience and speed offered by these payment technologies are becoming indispensable in enhancing the dining experience, she added.\nThat\u2019s why developing convenient and seamless digital payment and ordering capabilities should be top of mind for all restaurants looking to cater to their customers\u2019 preferences as well as support their own operational and business needs, she said. As they explore new technologies, restaurants will still need to carefully consider how to integrate these tools and ensure their own brands can stand out from a more crowded pack.\nConsumer Demands Driving Payments Innovation\nOn the business side, restaurants are equally driven to embrace innovation by the need to keep up with diners\u2019 emerging behavioral demands.\nAccording to American Express\u2019 latest Digital Payment Trendex, 27% of consumers surveyed said they always or almost always use mobile wallets and/or apps on a smartphone for in-store purchases. Merchants are responding in kind, as 68% of merchants surveyed already accept mobile wallet payments, and an additional 30% plan to adopt them within the next year or would consider adopting. Similarly, merchant-branded payment apps have witnessed an increase, with 40% offering their own payment apps, compared to 29% in 2021.\nAs Fox noted, this indicates a readiness among merchants and consumers to adopt new technologies that can enhance customer satisfaction. Modern solutions are available that cater to both customer experience and back-end operations.\n\u201cIn full-service restaurants, a huge portion of the hospitality opportunity is at the table and how the staff engages with the diners before, after and during \u2014 meaning there are significant opportunities to enhance the service, with touchpoints supported through user-friendly technology,\u201d Fox explained.\nShe highlighted platforms like Resy, which not only facilitate reservations but also offer additional functionalities.\n\u201cFor example, Resy can help restaurants upgrade the front end of the house experience while providing value behind the scenes,\u201d Fox said.\nResy enables customers to use major credit cards and allows American Express card members to pay their bills using Membership Reward points through Resy Pay. Via Resy, operators can deploy surveys directly to customers using the reservation system, enabling direct communication based on customer feedback.\n\u201cBy adopting modern payment solutions, restaurants can provide a seamless experience for diners as well as operators on the back end,\u201d Fox said, noting that for businesses looking to implement new payment solutions, it is crucial to determine the options that best fit their unique needs.\nFuture Innovations in Restaurant Payments\nRestaurants must be creative in how they work to stand out within the crowded dining landscape.\nFor restaurant operators exploring new payment solutions and innovations, Fox\u2019s advice is to maintain a keen understanding of customer preferences and stay informed about technological advancements.\n\u201cThe advice I would give restaurant operators in staying abreast is to stay open-minded, stay up to date with your customers\u2019 needs, and stay on top of relevant technology and trends,\u201d she said. \u201cIn this way, restaurants can focus on what they do best, and that\u2019s serving the diners and providing them with best-in-class service.\u201d\nAs for the relevant technology trends out there today, restaurants have access to solutions that help automate transactions, streamline cash flow management and prevent late payments and invoicing inaccuracies. Payment partners like American Express can assist by offering access to consolidated tools and solutions, making the digitization process easier, Fox said.\nThe more restaurants continue to adopt modern payment solutions and stay attuned to customer preferences, the better positioned they will be in the competitive restaurant industry.\nThe post Amex: Restaurant Sector Digital Payment Innovation Helps Meet Diner Demands appeared first on PYMNTS.com.", "date_published": "2024-09-25T04:00:53-04:00", "date_modified": "2024-09-24T21:38:02-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/09/Amex-restaurant-innovation.jpg", "tags": [ "American Express", "Amex", "Digital Payments", "digital transformation", "digital wallets", "Featured News", "food and beverages", "Mobile Payments", "Mobile Wallets", "News", "payment innovation", "Payment Methods", "payments", "PYMNTS Intelligence", "PYMNTS News", "pymnts tv", "Restaurants", "ResTech", "Tatia Adams Fox", "video", "Restaurant innovation" ] }, { "id": "https://www.pymnts.com/?p=2019444", "url": "https://www.pymnts.com/restaurant-innovation/2024/blackbird-labs-debuts-check-settlement-platform-for-restaurants/", "title": "Blackbird Labs Debuts Check-Settlement Platform for Restaurants", "content_html": "Hospitality tech firm Blackbird Labs has launched a new payments product for restaurants.
\n\u201cPowered by Blackbird\u2019s new blockchain, the Blackbird Flynet, Blackbird Pay gives restaurants a fresh way to address the ever growing problem of shrinking margins and eroding cash reserves by providing them with their very own end-to-end payments and check settlement network for the first time,\u201d the company said in a news release Tuesday (July 30).
\nAccording to the release, restaurants on the network pay on average 2% per transaction while diners can enjoy automatic settlement, not having to wait for the check. In addition, diners can be in \u201c$FLY,\u201d described as \u201cBlackbird\u2019s native rewards points.\u201d
\nBlackbird Labs was founded by Ben Leventhal, also the co-founder of food and drink magazine Eater and restaurant reservation platform Resy.
\n\u201cThe restaurant business model is broken,\u201d Leventhal told TechCrunch last year after the company raised $24 million.\u00a0\u201cIt can be really expensive to remain at the top of a sea of competition. Operational costs are also at an all-time high, and restaurants need revenue. There\u2019s only two paths forward: creating new revenue streams or creating regulars who\u2019ll want to come back.\u201d
\nAs PYMNTS wrote in June, one of the things that could keep patrons coming back is the option to pay at the table. While QR codes on menus haven\u2019t quite caught on, the technology is finding an audience with diners who are fans of the pay-at-the table concept.
\n\u201cWith that technology (literally) in hand, restaurant-goers pay for their meals with their phones at the point of sale with a device used by the waitstaff,\u201d that report said.
\nPYMNTS wrote earlier this month that the restaurant sector is facing \u201ca pivotal opportunity with the rise of frictionless digital payments, responding to growing customer demand for convenience.\u201d
\nDespite these advances, adoption rates have been slow, thanks to the entrenched use of traditional payment methods and ongoing staffing obstacles.
\nThe new PYMNTS Intelligence\u2019s study, \u201cWhy More Restaurants Need to Bite Into Digital Transformation,\u201d examines at how consumers are embracing technologies like digital wallets, mobile apps and QR codes because they meet the wishes of tech-savvy diners, while also improving operational efficiency and helping staff to enhance the dining experience.
\n\u201cTo stay competitive in this digital-first era, restaurants must integrate these modern payment solutions to ensure seamless dining experiences and avoid falling behind more innovative competitors,\u201d PYMNTS wrote.
\nThe post Blackbird Labs Debuts Check-Settlement Platform for Restaurants appeared first on PYMNTS.com.
\n", "content_text": "Hospitality tech firm Blackbird Labs has launched a new payments product for restaurants.\n\u201cPowered by Blackbird\u2019s new blockchain, the Blackbird Flynet, Blackbird Pay gives restaurants a fresh way to address the ever growing problem of shrinking margins and eroding cash reserves by providing them with their very own end-to-end payments and check settlement network for the first time,\u201d the company said in a news release Tuesday (July 30).\nAccording to the release, restaurants on the network pay on average 2% per transaction while diners can enjoy automatic settlement, not having to wait for the check. In addition, diners can be in \u201c$FLY,\u201d described as \u201cBlackbird\u2019s native rewards points.\u201d\nBlackbird Labs was founded by Ben Leventhal, also the co-founder of food and drink magazine Eater and restaurant reservation platform Resy.\n\u201cThe restaurant business model is broken,\u201d Leventhal told TechCrunch last year after the company raised $24 million.\u00a0\u201cIt can be really expensive to remain at the top of a sea of competition. Operational costs are also at an all-time high, and restaurants need revenue. There\u2019s only two paths forward: creating new revenue streams or creating regulars who\u2019ll want to come back.\u201d\nAs PYMNTS wrote in June, one of the things that could keep patrons coming back is the option to pay at the table. While QR codes on menus haven\u2019t quite caught on, the technology is finding an audience with diners who are fans of the pay-at-the table concept.\n\u201cWith that technology (literally) in hand, restaurant-goers pay for their meals with their phones at the point of sale with a device used by the waitstaff,\u201d that report said.\nPYMNTS wrote earlier this month that the restaurant sector is facing \u201ca pivotal opportunity with the rise of frictionless digital payments, responding to growing customer demand for convenience.\u201d\nDespite these advances, adoption rates have been slow, thanks to the entrenched use of traditional payment methods and ongoing staffing obstacles.\nThe new PYMNTS Intelligence\u2019s study, \u201cWhy More Restaurants Need to Bite Into Digital Transformation,\u201d examines at how consumers are embracing technologies like digital wallets, mobile apps and QR codes because they meet the wishes of tech-savvy diners, while also improving operational efficiency and helping staff to enhance the dining experience.\n\u201cTo stay competitive in this digital-first era, restaurants must integrate these modern payment solutions to ensure seamless dining experiences and avoid falling behind more innovative competitors,\u201d PYMNTS wrote.\nThe post Blackbird Labs Debuts Check-Settlement Platform for Restaurants appeared first on PYMNTS.com.", "date_published": "2024-07-30T19:39:19-04:00", "date_modified": "2024-07-30T19:39:19-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/restaurants-payments-QR-codes.jpg", "tags": [ "Blackbird Labs", "faster payments", "food and beverages", "News", "Payment Methods", "PYMNTS News", "QR codes", "restaurant payments", "Restaurant Technology", "Restaurants", "ResTech", "What's Hot", "Restaurant innovation" ] }, { "id": "https://www.pymnts.com/?p=2015691", "url": "https://www.pymnts.com/restaurant-innovation/2024/three-big-ideas-from-pymnts-intelligences-restaurants-digital-transformation-report/", "title": "3 Big Ideas From PYMNTS Intelligence\u2019s Restaurants\u2019 Digital Transformation Report", "content_html": "The restaurant industry faces a pivotal opportunity with the rise of frictionless digital payments, responding to growing customer demand for convenience. Despite these advancements, adoption rates lag due to entrenched use of traditional payment methods and ongoing staffing challenges.
\nPYMNTS Intelligence\u2019s new study, \u201cWhy More Restaurants Need to Bite Into Digital Transformation,\u201d delves into consumers embracing technologies like digital wallets, mobile apps and QR codes because they not only meets the preferences of tech-savvy diners, but also enhance operational efficiency and empower staff to elevate the overall dining experience.
\nTo stay competitive in this digital-first era, restaurants must integrate these modern payment solutions to ensure seamless dining experiences and avoid falling behind more innovative competitors.
\nIn today\u2019s dining landscape, the push toward adopting frictionless digital payments represents a pivotal opportunity for restaurants, backed by compelling statistics and industry insights.
\nRestaurants that integrate digital wallets, mobile apps and QR codes meet rising customer demand for contactless payments, enhancing satisfaction while streamlining operations and minimizing errors. This integration also liberates staff to focus on enhancing the overall dining experience, ensuring smoother service and greater efficiency.
\nCustomer preference for contactless payments is robust in both limited-service and full-service restaurants in the U.S. A National Restaurant Association study shows 68% of patrons at limited-service venues favor contactless or mobile options, including 65% for smartphone apps, 63% for self-service kiosks, 61% for digital wallets, and 48% for QR codes.
\nSimilarly, 62% of diners at full-service establishments prefer contactless payments, with 57% favoring digital wallets, 55% smartphone apps and 46% QR codes. Square\u2019s survey noted a 7% year-over-year rise in diners preferring contactless methods, with digital wallet usage up by 42% and adoption of contactless payment kiosks by 15%, highlighting the rapid adoption of modern payment technologies.
\nAdvanced POS systems that unify in-store and digital orders benefit restaurants by enhancing operational efficiency and customer loyalty through robust analytics. Currently, only 38% of restaurants in the U.S. and Canada have integrated these systems, but they cite efficient order processing as a key advantage.
\nIn the fast casual and quick-service restaurant segment, 65% prioritize adopting unified POS platforms to optimize service and menu offerings using detailed analytics. Despite an 11% increase in off-premises and digital sales, broader adoption of integrated POS solutions is needed to meet rising consumer preferences.
\nInvestment in contactless payment solutions remains moderate, with 41% of full-service and 42% of limited-service restaurants planning investments in 2024, citing concerns over costs, integration and ROI.
\nDespite the advantages of advanced POS systems, there is room for broader adoption. Restaurant off-premises and digital sales have seen an 11% increase from 2022, underscoring the growing importance of integrated POS solutions in meeting evolving consumer preferences.
\nAmid a slow recovery in restaurant post-pandemic employment rates, technology and automation are increasingly crucial tools in addressing staffing shortages. As of May, restaurant employment has grown by less than 1% despite high demand. This ongoing staffing crunch is pushing restaurants to rely more on technology and automation, including for payment processing.
\nAmong establishments using automation, 67% report direct benefits to diner experiences. Specifically, more than one-third of these establishments cite payment acceptance as a key area of impact. Implementing automated payment processing and digital ordering platforms not only enhances operational efficiency but also reduces cash handling, providing employees with quicker access to wages and tips. This approach significantly boosts staff retention and satisfaction in the face of ongoing labor challenges.
\nAs the industry navigates these challenges, technological solutions are proving essential for maintaining service standards and meeting customer expectations.
\nThe post 3 Big Ideas From PYMNTS Intelligence’s Restaurants\u2019 Digital Transformation Report appeared first on PYMNTS.com.
\n", "content_text": "The restaurant industry faces a pivotal opportunity with the rise of frictionless digital payments, responding to growing customer demand for convenience. Despite these advancements, adoption rates lag due to entrenched use of traditional payment methods and ongoing staffing challenges.\nPYMNTS Intelligence\u2019s new study, \u201cWhy More Restaurants Need to Bite Into Digital Transformation,\u201d delves into consumers embracing technologies like digital wallets, mobile apps and QR codes because they not only meets the preferences of tech-savvy diners, but also enhance operational efficiency and empower staff to elevate the overall dining experience.\nTo stay competitive in this digital-first era, restaurants must integrate these modern payment solutions to ensure seamless dining experiences and avoid falling behind more innovative competitors.\nFrictionless Digital Payments on the Rise\nIn today\u2019s dining landscape, the push toward adopting frictionless digital payments represents a pivotal opportunity for restaurants, backed by compelling statistics and industry insights.\nRestaurants that integrate digital wallets, mobile apps and QR codes meet rising customer demand for contactless payments, enhancing satisfaction while streamlining operations and minimizing errors. This integration also liberates staff to focus on enhancing the overall dining experience, ensuring smoother service and greater efficiency.\nCustomer preference for contactless payments is robust in both limited-service and full-service restaurants in the U.S. A National Restaurant Association study shows 68% of patrons at limited-service venues favor contactless or mobile options, including 65% for smartphone apps, 63% for self-service kiosks, 61% for digital wallets, and 48% for QR codes.\nSimilarly, 62% of diners at full-service establishments prefer contactless payments, with 57% favoring digital wallets, 55% smartphone apps and 46% QR codes. Square\u2019s survey noted a 7% year-over-year rise in diners preferring contactless methods, with digital wallet usage up by 42% and adoption of contactless payment kiosks by 15%, highlighting the rapid adoption of modern payment technologies.\nBroader Adoption of Advanced POS Systems Needed\nAdvanced POS systems that unify in-store and digital orders benefit restaurants by enhancing operational efficiency and customer loyalty through robust analytics. Currently, only 38% of restaurants in the U.S. and Canada have integrated these systems, but they cite efficient order processing as a key advantage.\nIn the fast casual and quick-service restaurant segment, 65% prioritize adopting unified POS platforms to optimize service and menu offerings using detailed analytics. Despite an 11% increase in off-premises and digital sales, broader adoption of integrated POS solutions is needed to meet rising consumer preferences.\nInvestment in contactless payment solutions remains moderate, with 41% of full-service and 42% of limited-service restaurants planning investments in 2024, citing concerns over costs, integration and ROI.\nDespite the advantages of advanced POS systems, there is room for broader adoption. Restaurant off-premises and digital sales have seen an 11% increase from 2022, underscoring the growing importance of integrated POS solutions in meeting evolving consumer preferences.\nTech, Automation Vital in Addressing Staffing Challenges\nAmid a slow recovery in restaurant post-pandemic employment rates, technology and automation are increasingly crucial tools in addressing staffing shortages. As of May, restaurant employment has grown by less than 1% despite high demand. This ongoing staffing crunch is pushing restaurants to rely more on technology and automation, including for payment processing.\nAmong establishments using automation, 67% report direct benefits to diner experiences. Specifically, more than one-third of these establishments cite payment acceptance as a key area of impact. Implementing automated payment processing and digital ordering platforms not only enhances operational efficiency but also reduces cash handling, providing employees with quicker access to wages and tips. This approach significantly boosts staff retention and satisfaction in the face of ongoing labor challenges.\nAs the industry navigates these challenges, technological solutions are proving essential for maintaining service standards and meeting customer expectations.\nThe post 3 Big Ideas From PYMNTS Intelligence’s Restaurants\u2019 Digital Transformation Report appeared first on PYMNTS.com.", "date_published": "2024-07-24T04:00:54-04:00", "date_modified": "2024-07-24T17:59:18-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/restaurants-contactless-payments-payment-methods.png", "tags": [ "Connected Economy", "contactless payments", "Digital Payments", "digital transformation", "Featured News", "food and beverages", "jobs", "Mobile Payments", "News", "Payment Methods", "PYMNTS Intelligence", "PYMNTS News", "restaurant jobs", "Restaurants", "Why More Restaurants Need to Bite Into Digital Transformation", "Restaurant innovation" ] }, { "id": "https://www.pymnts.com/?post_type=tracker_posts&p=1962087", "url": "https://www.pymnts.com/tracker_posts/why-more-restaurants-need-to-bite-into-digital-transformation/", "title": "Why More Restaurants Need to Bite Into Digital Transformation", "content_html": "Today\u2019s restaurant customers crave the convenience of contactless payments, and opportunities abound to provide them. However, the comfort of conventional payment methods, coupled with the challenges of staffing shortages and broader macroeconomic factors, is impacting adoption rates, leaving some restaurants at risk of losing diners to more innovative competitors.
\nNewer technologies such as digital wallets, mobile apps and QR codes can not only satisfy tech-savvy diners but also help streamline operations, reduce errors and, critically, free up staff to focus on enhancing the overall dining experience. To thrive in this competitive, increasingly digital-first landscape, restaurants will need to embrace these modern payment solutions \u2014 the missing ingredients for seamless dining experiences.
\nGreater adoption of frictionless digital payment options represents an important business opportunity for restaurants.
\nLimited-service restaurants live by quick service and high customer volume, making them excellent candidates for contactless payments. Diners in the United States agree: 68% of customers in this segment would pay using contactless or mobile options if available, including smartphone apps (65%), self-service kiosks (63%), digital wallets (61%) and QR codes (48%), according to the National Restaurant Association. More than just payment methods, these offerings can shake up workflows in ways that could drive measurably higher throughput during peak hours.
\nof limited-service restaurant diners would opt for contactless or mobile payment options if offered.
\nThe National Restaurant Association also found that 62% of full-service U.S. restaurant diners would choose contactless or mobile payment options if available, with 57% opting for digital wallets, 55% for smartphone apps and 46% for QR codes. In other words, even at sit-down restaurants, where human interaction is central to the dining experience, more than 3 in 5 diners prefer a digital or contactless payment process. This trend offers full-service restaurants a significant opportunity to score big on customer satisfaction and optimize staff allocation, thereby boosting efficiency and loyalty.
\nA recent survey by Square across four key restaurant markets \u2014 the U.S., Canada, the United Kingdom and Australia \u2014 reveals a 7% year-over-year jump in diners preferring contactless payment methods. Usage of digital wallets surged by 42%, while that of contactless payment kiosks climbed 15%. Satisfying consumer demand is only half the story. Integrating these methods also mitigates transaction reconciliation pain points. The knock-on effects are substantial, including speeding up end-of-day closing processes and improving overall accounting accuracy. Perhaps more importantly, preference for a digitally transformed restaurant industry is gaining momentum, suggesting that restaurants hesitating to adapt may find themselves at a competitive disadvantage.
\nRestaurant payment innovation still has a way to go to keep up with diner preferences and persistent staffing shortages.
\nOnly 42%
\nof limited-service restaurants plan to invest in contactless ordering/payment solutions in 2024.
\nIncisiv\u2019s 2024 State of the Industry report shows that just 38% of restaurants in the U.S. and Canada have integrated POS systems for both in-store and digital ordering, but others may wish to consider investing as well. More than half of U.S. food and beverage businesses using these systems cite efficient order and payment processing as their top benefit. Additionally, 65% of the fast casual and quick-service restaurant (QSR) segment in the U.S. is prioritizing a move to next-generation unified POS platforms, likely aiming to leverage granular data analytics on diner behavior and operational bottlenecks for strategic decision-making. This is a start, but with restaurant off-premises and digital sales showing an 11% increase from 2022, there is room for more adoption.
\nDespite the strong demand from diners, only 41% of full-service and 42% of limited-service restaurants plan to invest in contactless payment solutions in 2024. Investments in self-order and self-pay solutions are even lower, with just 30% of limited-service and 20% of full-service restaurants including them in their innovation agendas. Delays may stem from concerns over initial costs, integration challenges and uncertainty regarding return on investment. Nevertheless, the popularity of digital and contactless payments continues to rise, ensuring their top billing on the menu of the future.
\nFour years after the pandemic\u2019s onset, the restaurant industry is finally seeing a return to pre-pandemic employment levels, but only by less than 1% as of May 2024, despite high demand. The ongoing staffing crunch is pushing restaurants to reach increasingly for technology and automation, including for payment processing. Among those using automation, 67% report direct benefits to diner experiences, with more than one-third specifically citing payment acceptance as a key area of impact.
\nPYMNTS Intelligence interviews Toast\u2019s Michel Rbeiz, General Manager of FinTech, and Susie Riley, Vice President of New Ventures, on why innovations in payment variety and the use of data promise to serve up a growing feast for restaurants well into the future.
\n\nRestaurants are generally in the business of hospitality, and meeting the customer with their preferred way to pay aligns with that.\u201d
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\n[Our AI benchmarking tool is] an industry-first comprehensive solution that pairs data at scale with an easy experience.\u201d
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Both restaurant consumers and staff are increasingly valuing convenience and flexibility in their payment preferences, Rbeiz told PYMNTS Intelligence in a recent interview. This applies to both sit-down and takeout options.
\n\u201cConsumers are embracing contactless payments like tap-to-pay and mobile wallets [that help] restaurants serve guests more efficiently,\u201d he noted. \u201cAdditionally, consumers want seamless payment options for digital orders, such as using a card on file or a mobile wallet, to make completing a takeout or delivery order quick and easy.\u201d
\nAccording to Rbeiz, restaurants are responding to these changes in guest expectations by adopting digital ordering platforms that are designed to improve the payment experience and shopping cart-to-order conversion. A prime example is Toast\u2019s online ordering platform. Moreover, he said, the use of digital applications is growing on the staff side of the restaurant equation as well.
\n\u201cWe\u2019ve found that only a small minority of employees prefer to be paid via check,\u201d he said. \u201cInstead, employees are motivated by having earlier access to their wages and tips instead of the traditional paycheck every week or two.\u201d
\nFor example, Toast payment methods such as its pay card and tip payout options are a great alternative to direct deposit, Rbeiz said, as they allow employees to have early access to a portion of their earned wages and tips before payday.
\n\u201cThis also means that restaurants don\u2019t need to keep cash on hand to pay out daily tips, and it allows them to fully automate the pooling of tips, which can save them up to 60 minutes per day,\u201d he explained.
\nIn addition, he noted, offering on-demand pay and tips is a benefit that can attract employees and support retention by allowing them to reap the benefits of greater financial flexibility.
\n\u201cRestaurants are generally in the business of hospitality, and meeting the customer with their preferred way to pay aligns with that,\u201d Rbeiz observed.
\nFor example, he enumerated, Toast\u2019s handheld mobile point-of-sale (POS) device allows restaurant staff to take orders anywhere on premises and consumers to pay with multiple payment methods at their tables \u2014 whether by tapping their phones, leveraging contactless cards, or using the typical chip or card swiping. Mobile payments via QR codes also allow consumers the flexibility of paying quickly via their phones. Finally, he said, offline processing on the company\u2019s hardware provides additional flexibility, ensuring that restaurants never skip a beat with a consumer\u2019s payment.
\n\u201cThese various consumer payment options help keep service moving, boost sales and enhance customer satisfaction by allowing them to pay in the way that is most convenient to them,\u201d Rbeiz explained.
\nOne of the challenges that comes with multiple payment options, Rbeiz stated, is the need to train staff on how to serve guests and provide a positive customer experience with a variety of options.
\n\u201cFor example, if there is an option to order and pay via a digital ordering app and alternatively order and pay via the traditional way, the staff need to adapt to a variety of service models throughout a shift,\u201d he observed.
\nAnother challenge is the lack of integrated systems if different platforms are used across different ordering and payment options for a consumer. Unified systems can overcome this challenge.
\n\u201cWith Toast, our customers benefit from a single system that takes care of it all,\u201d he said.
\nWhile Rbeiz described the importance of restaurants offering payment variety, Riley explained how data is key to running a successful restaurant and her belief that Toast is well positioned to lead the charge in this area.
\nData has always been critical to the restaurant industry, she noted, but the ways restaurants can harness data have remained largely the same since the advent of cloud-based POS systems. This, she asserted, is about to change.
\n\u201cOne area that has been especially challenging for restaurateurs is understanding price, menu and sales trends in their specific markets,\u201d she explained. \u201cDespite all the data from the millions of restaurant transactions that happen every day, there has been a need for a better way to harness this data for restaurateurs to look beyond their own four walls.\u201d
\nWith this critical need in mind, Toast recently launched a reporting tool that helps restaurants view sales, price and menu trends in their local markets based on aggregated data from more than 100,000 restaurant locations on the Toast platform. The data is categorized and analyzed leveraging an artificial intelligence (AI)-based classification tool.
\nRiley said the tool provides restaurateurs with valuable insights, thanks to the AI-based feature that helps categorize more than 500 million menu items and decide, for example, whether a \u201cWhiskey Donut\u201d is a dessert or an alcoholic beverage.
\n\u201c[Our AI benchmarking tool is] an industry-first comprehensive solution that pairs data at scale with an easy experience,\u201d she elaborated. \u201cAs we see how these trends play out over the next few years, we believe Toast will continue to lead in this space, given the combination of proprietary technology and the power that comes from the unique mix of restaurants on our platform. Our goal is to help restaurants thrive, and we believe we can leverage data and AI to help them do just that.\u201d
\nFor the restaurant industry, diners are the only critics who matter \u2014 and their reviews are in: More contactless and digital payments, please. Adoption rates among restaurants are trailing demand, a lag that is felt especially keenly given the staffing challenges many restaurants continue to face. These factors make payment efficiency even more crucial for maintaining smooth operations. Restaurants can no longer afford to serve anything less than a modern payments experience. It\u2019s time to plate up the future of payments and give customers the fresh experience they crave.
\nPYMNTS Intelligence prescribes the following actionable roadmap for restaurants:
\n![\"Tatia](\"https://www.pymnts.com/wp-content/uploads/2024/07/Tatia-Adams-Fox-headshot.jpg\")
\nAs food and labor costs rise, it\u2019s important that restaurants find efficiencies in other areas, including upgrading their payment technologies and back-end processes. By adopting automated payment solutions \u2014 like One AP, offered by American Express \u2014 restaurants can help increase efficiency and reduce errors when paying suppliers. This allows more time to focus on customers and can help the restaurant\u2019s economics overall.\u201d
\n
![](\"https://www.pymnts.com/wp-content/uploads/2024/01/American-Express-logo.png\"){kind=logo}
Acknowledgment
\nThe B2B and Digital Payments Tracker\u00ae Series is produced in collaboration with American Express, and PYMNTS Intelligence is grateful for the company\u2019s support and insight. PYMNTS Intelligence retains full editorial control over the above findings, methodology and data analysis.
The post Why More Restaurants Need to Bite Into Digital Transformation appeared first on PYMNTS.com.
\n", "content_text": "Today\u2019s restaurant customers crave the convenience of contactless payments, and opportunities abound to provide them. However, the comfort of conventional payment methods, coupled with the challenges of staffing shortages and broader macroeconomic factors, is impacting adoption rates, leaving some restaurants at risk of losing diners to more innovative competitors.\nNewer technologies such as digital wallets, mobile apps and QR codes can not only satisfy tech-savvy diners but also help streamline operations, reduce errors and, critically, free up staff to focus on enhancing the overall dining experience. To thrive in this competitive, increasingly digital-first landscape, restaurants will need to embrace these modern payment solutions \u2014 the missing ingredients for seamless dining experiences.\n\n\n\nContactless and Digital Payments: The New Table Stakes in Dining\nPayments Technology Appetites Outstrip Adoption\nWhy Digital Innovation Is the Secret Sauce for Restaurant Success\nHarnessing Technology to Satisfy Diners and Boost the Bottom Line\n\n\n\nContactless and Digital Payments: The New Table Stakes in Dining\nGreater adoption of frictionless digital payment options represents an important business opportunity for restaurants.\nContactless offers speed and satisfaction to limited-service restaurants.\n\n\n\nLimited-service restaurants live by quick service and high customer volume, making them excellent candidates for contactless payments. Diners in the United States agree: 68% of customers in this segment would pay using contactless or mobile options if available, including smartphone apps (65%), self-service kiosks (63%), digital wallets (61%) and QR codes (48%), according to the National Restaurant Association. More than just payment methods, these offerings can shake up workflows in ways that could drive measurably higher throughput during peak hours.\n\n\n68%\nof limited-service restaurant diners would opt for contactless or mobile payment options if offered.\n\n\n\nSit-down diners have tasted contactless convenience \u2014 and like it.\nThe National Restaurant Association also found that 62% of full-service U.S. restaurant diners would choose contactless or mobile payment options if available, with 57% opting for digital wallets, 55% for smartphone apps and 46% for QR codes. In other words, even at sit-down restaurants, where human interaction is central to the dining experience, more than 3 in 5 diners prefer a digital or contactless payment process. This trend offers full-service restaurants a significant opportunity to score big on customer satisfaction and optimize staff allocation, thereby boosting efficiency and loyalty.\nDiners want more contactless options, and restaurants can benefit too.\nA recent survey by Square across four key restaurant markets \u2014 the U.S., Canada, the United Kingdom and Australia \u2014 reveals a 7% year-over-year jump in diners preferring contactless payment methods. Usage of digital wallets surged by 42%, while that of contactless payment kiosks climbed 15%. Satisfying consumer demand is only half the story. Integrating these methods also mitigates transaction reconciliation pain points. The knock-on effects are substantial, including speeding up end-of-day closing processes and improving overall accounting accuracy. Perhaps more importantly, preference for a digitally transformed restaurant industry is gaining momentum, suggesting that restaurants hesitating to adapt may find themselves at a competitive disadvantage.\nPayments Technology Appetites Outstrip Adoption\nRestaurant payment innovation still has a way to go to keep up with diner preferences and persistent staffing shortages.\nNext-gen POS systems enhance restaurant efficiency.\n\n\n\nOnly 42%\nof limited-service restaurants plan to invest in contactless ordering/payment solutions in 2024.\n\n\nIncisiv\u2019s 2024 State of the Industry report shows that just 38% of restaurants in the U.S. and Canada have integrated POS systems for both in-store and digital ordering, but others may wish to consider investing as well. More than half of U.S. food and beverage businesses using these systems cite efficient order and payment processing as their top benefit. Additionally, 65% of the fast casual and quick-service restaurant (QSR) segment in the U.S. is prioritizing a move to next-generation unified POS platforms, likely aiming to leverage granular data analytics on diner behavior and operational bottlenecks for strategic decision-making. This is a start, but with restaurant off-premises and digital sales showing an 11% increase from 2022, there is room for more adoption.\n\n\n\nRestaurant investment in contactless payment solutions is still moderate.\nDespite the strong demand from diners, only 41% of full-service and 42% of limited-service restaurants plan to invest in contactless payment solutions in 2024. Investments in self-order and self-pay solutions are even lower, with just 30% of limited-service and 20% of full-service restaurants including them in their innovation agendas. Delays may stem from concerns over initial costs, integration challenges and uncertainty regarding return on investment. Nevertheless, the popularity of digital and contactless payments continues to rise, ensuring their top billing on the menu of the future.\nWhen kitchens are short-handed, automation steps up.\nFour years after the pandemic\u2019s onset, the restaurant industry is finally seeing a return to pre-pandemic employment levels, but only by less than 1% as of May 2024, despite high demand. The ongoing staffing crunch is pushing restaurants to reach increasingly for technology and automation, including for payment processing. Among those using automation, 67% report direct benefits to diner experiences, with more than one-third specifically citing payment acceptance as a key area of impact.\nWhy Digital Innovation Is the Secret Sauce for Restaurant Success\nPYMNTS Intelligence interviews Toast\u2019s Michel Rbeiz, General Manager of FinTech, and Susie Riley, Vice President of New Ventures, on why innovations in payment variety and the use of data promise to serve up a growing feast for restaurants well into the future.\n\n\n\n\n\n Restaurants are generally in the business of hospitality, and meeting the customer with their preferred way to pay aligns with that.\u201d\nMichel Rbeiz\nGeneral Manager, FinTech\n\n\n\n\n\n\n\n\n [Our AI benchmarking tool is] an industry-first comprehensive solution that pairs data at scale with an easy experience.\u201d\nSusie Reilly\nVice President, New Ventures\n\n\n\n \nFour years after the pandemic prompted an immediate pivot, the demand for digital payments is growing strong in the restaurant sector.\nBoth restaurant consumers and staff are increasingly valuing convenience and flexibility in their payment preferences, Rbeiz told PYMNTS Intelligence in a recent interview. This applies to both sit-down and takeout options.\n\u201cConsumers are embracing contactless payments like tap-to-pay and mobile wallets [that help] restaurants serve guests more efficiently,\u201d he noted. \u201cAdditionally, consumers want seamless payment options for digital orders, such as using a card on file or a mobile wallet, to make completing a takeout or delivery order quick and easy.\u201d\nAccording to Rbeiz, restaurants are responding to these changes in guest expectations by adopting digital ordering platforms that are designed to improve the payment experience and shopping cart-to-order conversion. A prime example is Toast\u2019s online ordering platform. Moreover, he said, the use of digital applications is growing on the staff side of the restaurant equation as well.\n\u201cWe\u2019ve found that only a small minority of employees prefer to be paid via check,\u201d he said. \u201cInstead, employees are motivated by having earlier access to their wages and tips instead of the traditional paycheck every week or two.\u201d\nFor example, Toast payment methods such as its pay card and tip payout options are a great alternative to direct deposit, Rbeiz said, as they allow employees to have early access to a portion of their earned wages and tips before payday.\n\u201cThis also means that restaurants don\u2019t need to keep cash on hand to pay out daily tips, and it allows them to fully automate the pooling of tips, which can save them up to 60 minutes per day,\u201d he explained.\nIn addition, he noted, offering on-demand pay and tips is a benefit that can attract employees and support retention by allowing them to reap the benefits of greater financial flexibility.\nProviding multiple payment options to their customers and staff makes a crucial difference for restaurants.\n\u201cRestaurants are generally in the business of hospitality, and meeting the customer with their preferred way to pay aligns with that,\u201d Rbeiz observed.\nFor example, he enumerated, Toast\u2019s handheld mobile point-of-sale (POS) device allows restaurant staff to take orders anywhere on premises and consumers to pay with multiple payment methods at their tables \u2014 whether by tapping their phones, leveraging contactless cards, or using the typical chip or card swiping. Mobile payments via QR codes also allow consumers the flexibility of paying quickly via their phones. Finally, he said, offline processing on the company\u2019s hardware provides additional flexibility, ensuring that restaurants never skip a beat with a consumer\u2019s payment.\n\u201cThese various consumer payment options help keep service moving, boost sales and enhance customer satisfaction by allowing them to pay in the way that is most convenient to them,\u201d Rbeiz explained.\nRestaurants still face challenges when implementing and managing multiple payment options. Platforms can help.\nOne of the challenges that comes with multiple payment options, Rbeiz stated, is the need to train staff on how to serve guests and provide a positive customer experience with a variety of options.\n\u201cFor example, if there is an option to order and pay via a digital ordering app and alternatively order and pay via the traditional way, the staff need to adapt to a variety of service models throughout a shift,\u201d he observed.\nAnother challenge is the lack of integrated systems if different platforms are used across different ordering and payment options for a consumer. Unified systems can overcome this challenge.\n\u201cWith Toast, our customers benefit from a single system that takes care of it all,\u201d he said.\nInnovation around data is set to have a transformative impact on the restaurant industry over the next few years.\nWhile Rbeiz described the importance of restaurants offering payment variety, Riley explained how data is key to running a successful restaurant and her belief that Toast is well positioned to lead the charge in this area.\nData has always been critical to the restaurant industry, she noted, but the ways restaurants can harness data have remained largely the same since the advent of cloud-based POS systems. This, she asserted, is about to change.\n\u201cOne area that has been especially challenging for restaurateurs is understanding price, menu and sales trends in their specific markets,\u201d she explained. \u201cDespite all the data from the millions of restaurant transactions that happen every day, there has been a need for a better way to harness this data for restaurateurs to look beyond their own four walls.\u201d\nWith this critical need in mind, Toast recently launched a reporting tool that helps restaurants view sales, price and menu trends in their local markets based on aggregated data from more than 100,000 restaurant locations on the Toast platform. The data is categorized and analyzed leveraging an artificial intelligence (AI)-based classification tool.\nRiley said the tool provides restaurateurs with valuable insights, thanks to the AI-based feature that helps categorize more than 500 million menu items and decide, for example, whether a \u201cWhiskey Donut\u201d is a dessert or an alcoholic beverage.\n\u201c[Our AI benchmarking tool is] an industry-first comprehensive solution that pairs data at scale with an easy experience,\u201d she elaborated. \u201cAs we see how these trends play out over the next few years, we believe Toast will continue to lead in this space, given the combination of proprietary technology and the power that comes from the unique mix of restaurants on our platform. Our goal is to help restaurants thrive, and we believe we can leverage data and AI to help them do just that.\u201d\nHarnessing Technology to Satisfy Diners and Boost the Bottom Line\nFor the restaurant industry, diners are the only critics who matter \u2014 and their reviews are in: More contactless and digital payments, please. Adoption rates among restaurants are trailing demand, a lag that is felt especially keenly given the staffing challenges many restaurants continue to face. These factors make payment efficiency even more crucial for maintaining smooth operations. Restaurants can no longer afford to serve anything less than a modern payments experience. It\u2019s time to plate up the future of payments and give customers the fresh experience they crave.\nPYMNTS Intelligence prescribes the following actionable roadmap for restaurants:\n\nIntegrate an advanced POS system for unified operations: Implement cutting-edge, unified POS systems that process both in-store and digital orders and harvest robust analytics on diner behavior. Use these insights to refine service strategies and optimize menu offerings, ultimately driving improved operational efficiency and enhancing the overall dining experience.\nModernize and diversify payment options: Expand the range of accepted payment methods to include multiple digital and contactless methods. Variety is the secret ingredient for enhanced customer engagement and streamlined transaction processes, contributing to increased sales and customer loyalty.\n\n\n\n\n\n\n As food and labor costs rise, it\u2019s important that restaurants find efficiencies in other areas, including upgrading their payment technologies and back-end processes. By adopting automated payment solutions \u2014 like One AP, offered by American Express \u2014 restaurants can help increase efficiency and reduce errors when paying suppliers. This allows more time to focus on customers and can help the restaurant\u2019s economics overall.\u201d\nTatia Adams Fox\nVice President & General Manager, Travel & Entertainment, National Client Group\n\n\n\n\nAcknowledgment\nThe B2B and Digital Payments Tracker\u00ae Series is produced in collaboration with American Express, and PYMNTS Intelligence is grateful for the company\u2019s support and insight. PYMNTS Intelligence retains full editorial control over the above findings, methodology and data analysis.\nThe post Why More Restaurants Need to Bite Into Digital Transformation appeared first on PYMNTS.com.", "date_published": "2024-07-19T04:03:48-04:00", "date_modified": "2024-07-21T21:42:47-04:00", "authors": [ { "name": "Ashley McLeod", "url": "https://www.pymnts.com/author/amcleod/", "avatar": "https://secure.gravatar.com/avatar/5fcbfee0fc4dc81613187d709d661036?s=512&d=blank&r=g" } ], "author": { "name": "Ashley McLeod", "url": "https://www.pymnts.com/author/amcleod/", "avatar": "https://secure.gravatar.com/avatar/5fcbfee0fc4dc81613187d709d661036?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/b2b-payments-restaurant-pos-technology.jpg", "tags": [ "American Express", "Amex", "automation", "B2B", "B2B Payments", "commercial payments", "contactless payments", "Digital Payments", "digital transformation", "digital wallets", "Featured News", "News", "PYMNTS Intelligence", "PYMNTS News", "Restaurants", "Tracker Series", "Restaurant innovation" ] }, { "id": "https://www.pymnts.com/?p=1952096", "url": "https://www.pymnts.com/restaurant-innovation/2024/restaurant-supply-chains-may-boost-account-to-account-momentum/", "title": "Restaurant Supply Chains May Boost Account-to-Account Momentum", "content_html": "Matching supply and demand is both art and science, and the restaurant supply chain is all about \u201cjust in time\u201d inventory management.
\nAfter all, food spoils.
\nMisjudge the crush of the lunchtime crowd, and you might get stocked out of the day\u2019s most popular dishes.
\nThe net result is lost sales, lost cash that might otherwise be headed into the corporate coffers.
\nSupply chains, of course, are built link by link.\u00a0 For restaurants \u2014 especially the mom and pop organizations that line Main Street and where the National Restaurant Association estimates that 9 in 10 restaurants have fewer than 50 employees (and qualify as small businesses) \u2014 strong vendor relationships are key.
\nWhile PYMNTS Intelligence data has noted that most sectors have overcome the volatility and the vagaries of the pandemic, efficiency is an ever moving target, and there\u2019s been a continued shift to digital conduits to get things done, and to pay and be paid (naturally).
\nThere may be a groundswell for account-to-account payments in the restaurant sector.
\nWe noted in our latest \u201cRestaurant Edition\u201d of the \u201cSmall Business Real-Time Payments Barometer\u201d that a full three quarters of restaurant SMBs, generating less than $10 million in annual top lines, sent instant payments last year. Instant PayPal and debit cards are the two most common instant payment methods at around 40% each.\u00a0 Instant pay-by-bank trailed a bit, at 20%.
\nThere\u2019s at least some lack of familiarity at work here. Separate PYMNTS Intelligence research showed at the end of last year that more than a third of consumers \u2014 and business owners are, of course, consumers, as trying new payment methods in everyday life lends itself well to using them in a business setting \u2014 did not know how account-to-account payments (A2A) payments work.\u00a0 Those that tried it tended to like it, at 84% of consumers surveyed.
\nThe A2A model moves funds directly from a sender\u2019s bank account to a recipient\u2019s bank account \u2014 through both \u201cpush\u201d and \u201cpull\u201d scenarios \u2014 with no additional parties in the mix.\u00a0 Our data shows that 76% of restaurant SMBs that opt for A2A instant options as a preferred payment method have healthy balance sheets, at a majority of all revenue \u201clevels.\u201d\u00a0 For the firms that have top lines of between $250,000 to $1 million, the \u201chealthy balance sheet\u201d population rises to 86%. \u00a0For these smaller players, the relatively lower fees tied to the direct-bank options can be attractive to margin. That\u2019s especially true when managing daily operating expenses such as utilities and other recurring payments \u2014 which can of course include deliveries from suppliers. The suppliers have cash in their own accounts rather than waiting to \u201csettle up.\u201d
\nThere\u2019s a positive ripple effect for the local banks that are the mainstays of Main Street businesses. Our data show that instant payment options are most important to the small restaurants that opt to bank locally, at 47% of SMBs in the food space.
\nThe post Restaurant Supply Chains May Boost Account-to-Account Momentum appeared first on PYMNTS.com.
\n", "content_text": "Matching supply and demand is both art and science, and the restaurant supply chain is all about \u201cjust in time\u201d inventory management.\nAfter all, food spoils.\nMisjudge the crush of the lunchtime crowd, and you might get stocked out of the day\u2019s most popular dishes.\nThe net result is lost sales, lost cash that might otherwise be headed into the corporate coffers.\nSupply chains, of course, are built link by link.\u00a0 For restaurants \u2014 especially the mom and pop organizations that line Main Street and where the National Restaurant Association estimates that 9 in 10 restaurants have fewer than 50 employees (and qualify as small businesses) \u2014 strong vendor relationships are key.\nWhile PYMNTS Intelligence data has noted that most sectors have overcome the volatility and the vagaries of the pandemic, efficiency is an ever moving target, and there\u2019s been a continued shift to digital conduits to get things done, and to pay and be paid (naturally).\nThere may be a groundswell for account-to-account payments in the restaurant sector.\nWe noted in our latest \u201cRestaurant Edition\u201d of the \u201cSmall Business Real-Time Payments Barometer\u201d that a full three quarters of restaurant SMBs, generating less than $10 million in annual top lines, sent instant payments last year. Instant PayPal and debit cards are the two most common instant payment methods at around 40% each.\u00a0 Instant pay-by-bank trailed a bit, at 20%.\nFamiliarity Breeds Satisfaction \nThere\u2019s at least some lack of familiarity at work here. Separate PYMNTS Intelligence research showed at the end of last year that more than a third of consumers \u2014 and business owners are, of course, consumers, as trying new payment methods in everyday life lends itself well to using them in a business setting \u2014 did not know how account-to-account payments (A2A) payments work.\u00a0 Those that tried it tended to like it, at 84% of consumers surveyed.\nThe A2A model moves funds directly from a sender\u2019s bank account to a recipient\u2019s bank account \u2014 through both \u201cpush\u201d and \u201cpull\u201d scenarios \u2014 with no additional parties in the mix.\u00a0 Our data shows that 76% of restaurant SMBs that opt for A2A instant options as a preferred payment method have healthy balance sheets, at a majority of all revenue \u201clevels.\u201d\u00a0 For the firms that have top lines of between $250,000 to $1 million, the \u201chealthy balance sheet\u201d population rises to 86%. \u00a0For these smaller players, the relatively lower fees tied to the direct-bank options can be attractive to margin. That\u2019s especially true when managing daily operating expenses such as utilities and other recurring payments \u2014 which can of course include deliveries from suppliers. The suppliers have cash in their own accounts rather than waiting to \u201csettle up.\u201d\nThere\u2019s a positive ripple effect for the local banks that are the mainstays of Main Street businesses. Our data show that instant payment options are most important to the small restaurants that opt to bank locally, at 47% of SMBs in the food space.\nThe post Restaurant Supply Chains May Boost Account-to-Account Momentum appeared first on PYMNTS.com.", "date_published": "2024-06-02T22:47:08-04:00", "date_modified": "2024-06-02T22:47:08-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/12/restaurants-social-media.jpg", "tags": [ "A2A payments", "Account-To-Account Payments", "B2B", "B2B Payments", "Featured News", "instant payments", "News", "PYMNTS News", "Restaurants", "SMBs", "supply chain management", "vendors", "Restaurant innovation" ] }, { "id": "https://www.pymnts.com/?p=1941559", "url": "https://www.pymnts.com/restaurant-innovation/2024/report-mcdonalds-to-launch-digital-marketing-fund-add-ordering-channels/", "title": "Report:\u00a0McDonald\u2019s\u00a0to Launch Digital Marketing Fund, Add Ordering Channels", "content_html": "McDonald\u2019s\u00a0is reportedly set\u00a0to modernize its marketing strategy by launching a digital marketing fund to be paid into by its U.S. franchisees.
\nThe move aims to modernize the fast-food\u00a0giant\u2019s\u00a0marketing approach, enhance its competitive advantage\u00a0and\u00a0strengthen its position in the digital business landscape, CNBC\u00a0reported\u00a0Thursday (May 9), citing an internal company memo.
\nMcDonald\u2019s\u00a0did not immediately reply to\u00a0PYMNTS\u2019\u00a0request for comment.
\nThe company plans to require its U.S. operators to contribute to the digital marketing fund starting next year, according to the report.
\nThe introduction of the digital marketing fund is part of\u00a0McDonald\u2019s\u00a0broader efforts to expand its digital business, the report said, citing the memo.\u00a0The company plans to invest hundreds of millions of dollars\u00a0in the coming years\u00a0to improve its loyalty program and introduce new ordering channels.\u00a0These initiatives include web orders without the need to download an app.
\nMcDonald\u2019s\u00a0loyalty program members generated over $6 billion in\u00a0system-wide\u00a0sales globally during the first quarter, per the report.
\nThe company recognizes the importance of digital marketing in gaining a competitive edge, according to the report.\u00a0With 34 million active digital customers in the U.S.,\u00a0McDonald\u2019s\u00a0aims to leverage its digital presence to attract and retain more customers and reach 100 million loyalty program members by 2027.
\nTo fund the digital marketing initiatives,\u00a0McDonald\u2019s\u00a0is recommending\u00a0that franchisees allocate a portion of their existing marketing contribution, the report said. Currently, franchisees\u00a0are required to\u00a0spend at least 4% of gross sales on marketing. Starting next year, U.S. operators will contribute 1.2% of projected identified digital sales, such as transactions made through the loyalty program or delivery orders.
\nThe digital marketing fund will not be limited to the U.S. market, per the report. Franchisees in the U.K., Canada, Australia and Germany will also contribute to the global digital marketing fund. McDonald\u2019s plans to gradually transition the rest of its markets to this approach in the future.
\nWhen announcing its goal to add 100 million\u00a0loyalty program\u00a0members by 2027, bringing its total to 250 million,\u00a0McDonald\u2019s\u00a0President and CEO\u00a0Chris Kempczinski\u00a0said the company\u00a0also\u00a0plans to more than double\u00a0systemwide\u00a0sales attributable to those users.
\n\u201cWe have a clear trajectory for future growth as we continue to build on brand strength, global footprint and digital ecosystem that have resulted in unparalleled competitive advantages and cemented McDonald\u2019s as one of the world\u2019s leading consumer-facing brands,\u201d Kempczinski said in a Dec. 6 statement.
\nFor all PYMNTS digital transformation coverage, subscribe to the daily\u00a0Digital Transformation Newsletter.
\nThe post Report:\u00a0McDonald\u2019s\u00a0to Launch Digital Marketing Fund, Add Ordering Channels appeared first on PYMNTS.com.
\n", "content_text": "McDonald\u2019s\u00a0is reportedly set\u00a0to modernize its marketing strategy by launching a digital marketing fund to be paid into by its U.S. franchisees.\nThe move aims to modernize the fast-food\u00a0giant\u2019s\u00a0marketing approach, enhance its competitive advantage\u00a0and\u00a0strengthen its position in the digital business landscape, CNBC\u00a0reported\u00a0Thursday (May 9), citing an internal company memo.\nMcDonald\u2019s\u00a0did not immediately reply to\u00a0PYMNTS\u2019\u00a0request for comment.\nThe company plans to require its U.S. operators to contribute to the digital marketing fund starting next year, according to the report.\nThe introduction of the digital marketing fund is part of\u00a0McDonald\u2019s\u00a0broader efforts to expand its digital business, the report said, citing the memo.\u00a0The company plans to invest hundreds of millions of dollars\u00a0in the coming years\u00a0to improve its loyalty program and introduce new ordering channels.\u00a0These initiatives include web orders without the need to download an app.\nMcDonald\u2019s\u00a0loyalty program members generated over $6 billion in\u00a0system-wide\u00a0sales globally during the first quarter, per the report.\nThe company recognizes the importance of digital marketing in gaining a competitive edge, according to the report.\u00a0With 34 million active digital customers in the U.S.,\u00a0McDonald\u2019s\u00a0aims to leverage its digital presence to attract and retain more customers and reach 100 million loyalty program members by 2027.\nTo fund the digital marketing initiatives,\u00a0McDonald\u2019s\u00a0is recommending\u00a0that franchisees allocate a portion of their existing marketing contribution, the report said. Currently, franchisees\u00a0are required to\u00a0spend at least 4% of gross sales on marketing. Starting next year, U.S. operators will contribute 1.2% of projected identified digital sales, such as transactions made through the loyalty program or delivery orders.\nThe digital marketing fund will not be limited to the U.S. market, per the report. Franchisees in the U.K., Canada, Australia and Germany will also contribute to the global digital marketing fund. McDonald\u2019s plans to gradually transition the rest of its markets to this approach in the future.\nWhen announcing its goal to add 100 million\u00a0loyalty program\u00a0members by 2027, bringing its total to 250 million,\u00a0McDonald\u2019s\u00a0President and CEO\u00a0Chris Kempczinski\u00a0said the company\u00a0also\u00a0plans to more than double\u00a0systemwide\u00a0sales attributable to those users.\n\u201cWe have a clear trajectory for future growth as we continue to build on brand strength, global footprint and digital ecosystem that have resulted in unparalleled competitive advantages and cemented McDonald\u2019s as one of the world\u2019s leading consumer-facing brands,\u201d Kempczinski said in a Dec. 6 statement.\nFor all PYMNTS digital transformation coverage, subscribe to the daily\u00a0Digital Transformation Newsletter.\nThe post Report:\u00a0McDonald\u2019s\u00a0to Launch Digital Marketing Fund, Add Ordering Channels appeared first on PYMNTS.com.", "date_published": "2024-05-09T15:54:44-04:00", "date_modified": "2024-05-09T15:54:44-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/05/McDonalds-QSRs-fast-food.png", "tags": [ "advertising", "app", "digital marketing", "digital transformation", "fast food", "food and beverages", "franchise", "loyalty", "marketing", "McDonald's", "McDonald's franchisees", "News", "PYMNTS News", "QSRs", "quick service restaurants", "Restaurant innovation", "Restaurants" ] }, { "id": "https://www.pymnts.com/?p=1939854", "url": "https://www.pymnts.com/restaurant-innovation/2024/square-debuts-restaurant-kiosk-for-self-serve-ordering/", "title": "Square Debuts Restaurant Kiosk for Self-Serve Ordering", "content_html": "Square\u00a0has introduced a tool to allow self-service ordering at fast food restaurants.
\nSquare Kiosk,\u00a0announced Tuesday (May 7), is a combined software, hardware and payment solution designed to work in tandem with the company\u2019s Square for Restaurants offering and larger broader ecosystem of banking, customer engagement and business insights tools.\u00a0
\n\u201cFor diners, using Square Kiosk is a sleek and simple experience that lets them bypass lines and easily customize their orders,\u201d the company said in a news release.
\n\u201cGuests are able to select exactly what they want, with customization options being sent directly to the kitchen, and restaurants can grow their check sizes by offering upgrades and add-ons on every order without any awkward exchanges.\u201d
\nWith labor costs rising, the release added, Square Kiosk lets operators reduce wait times and increase staffing in other parts of their businesses while still taking orders.\u00a0
\nPYMNTS explored the demand for self-service among consumers in a recent interview with\u00a0Brandon Barton, CEO of self-service kiosk provider\u00a0Bite, which recently raised $9 million in its\u00a0Series A funding round.
\nHe said that his company, which has been focused on restaurants, was getting \u201cmore inquiries today from retail brands\u201d than ever before.\u00a0
\nRetailers, Barton told PYMNTS, are seeing the opportunity to use the ordering solution to address customer demand for\u00a0omnichannel experiences\u00a0in a way that maintains their focus on the shopping journey.
\n\u201cWhat you want people to do is go to the internet and check [product information], because then it\u2019s scalable and updated with the most recent info, with the most recent sale and everything, but the minute somebody takes out their phone, they have 70 notifications from Slack, Instagram email and texts that distract them,\u201d he said.\u00a0
\n\u201cSo, if you have a self-service kiosk that sits beside and is complementary to a retail experience, you blend online and offline in what I think is an elegant way for the consumer purchase journey,\u201d Barton added.\u00a0
\nMeanwhile, research by PYMNTS intelligence has shown that customers are more enthusiastic about self-service at quick-service and fast-casual restaurants than at full-service dining establishments.\u00a0
\nThe PYMNTS Intelligence study\u00a0\u201cThe Digital Divide: Technology, the Metaverse and the Future of Dining Out\u201d\u00a0showed that a little more than half of grab-and-go customers said ordering using a self-service kiosk have a positively impact on their satisfaction, while just 20% of dine-in customers said the same.
\nThe post Square Debuts Restaurant Kiosk for Self-Serve Ordering appeared first on PYMNTS.com.
\n", "content_text": "Square\u00a0has introduced a tool to allow self-service ordering at fast food restaurants.\nSquare Kiosk,\u00a0announced Tuesday (May 7), is a combined software, hardware and payment solution designed to work in tandem with the company\u2019s Square for Restaurants offering and larger broader ecosystem of banking, customer engagement and business insights tools.\u00a0\n\u201cFor diners, using Square Kiosk is a sleek and simple experience that lets them bypass lines and easily customize their orders,\u201d the company said in a news release.\n\u201cGuests are able to select exactly what they want, with customization options being sent directly to the kitchen, and restaurants can grow their check sizes by offering upgrades and add-ons on every order without any awkward exchanges.\u201d\nWith labor costs rising, the release added, Square Kiosk lets operators reduce wait times and increase staffing in other parts of their businesses while still taking orders.\u00a0\nPYMNTS explored the demand for self-service among consumers in a recent interview with\u00a0Brandon Barton, CEO of self-service kiosk provider\u00a0Bite, which recently raised $9 million in its\u00a0Series A funding round.\nHe said that his company, which has been focused on restaurants, was getting \u201cmore inquiries today from retail brands\u201d than ever before.\u00a0\nRetailers, Barton told PYMNTS, are seeing the opportunity to use the ordering solution to address customer demand for\u00a0omnichannel experiences\u00a0in a way that maintains their focus on the shopping journey.\n\u201cWhat you want people to do is go to the internet and check [product information], because then it\u2019s scalable and updated with the most recent info, with the most recent sale and everything, but the minute somebody takes out their phone, they have 70 notifications from Slack, Instagram email and texts that distract them,\u201d he said.\u00a0\n\u201cSo, if you have a self-service kiosk that sits beside and is complementary to a retail experience, you blend online and offline in what I think is an elegant way for the consumer purchase journey,\u201d Barton added.\u00a0\nMeanwhile, research by PYMNTS intelligence has shown that customers are more enthusiastic about self-service at quick-service and fast-casual restaurants than at full-service dining establishments.\u00a0\nThe PYMNTS Intelligence study\u00a0\u201cThe Digital Divide: Technology, the Metaverse and the Future of Dining Out\u201d\u00a0showed that a little more than half of grab-and-go customers said ordering using a self-service kiosk have a positively impact on their satisfaction, while just 20% of dine-in customers said the same.\nThe post Square Debuts Restaurant Kiosk for Self-Serve Ordering appeared first on PYMNTS.com.", "date_published": "2024-05-07T12:14:50-04:00", "date_modified": "2024-05-07T22:51:50-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/10/Square.jpg", "tags": [ "food and beverages", "News", "PYMNTS News", "Restaurants", "ResTech", "self-service", "Self-service Kiosks", "Square", "Square Kiosk", "What's Hot", "Restaurant innovation" ] }, { "id": "https://www.pymnts.com/?p=1938966", "url": "https://www.pymnts.com/restaurant-innovation/2024/starbucks-ex-ceo-urges-leaders-return-stores/", "title": "Starbucks Ex-CEO Urges Leaders to Return to Stores", "content_html": "Starbucks\u2019 former CEO said the chain\u2019s leaders\u00a0need to\u00a0spend more time at its stores.
\nHoward Schultz\u00a0made the argument\u00a0on\u00a0LinkedIn\u00a0Sunday (May 5), days after the company reported its steepest drop in U.S. customer traffic in 14 years.
\nTo combat that problem, Schultz said, Starbucks\u2019 leadership needs to focus on its stores, which he said require \u201cmaniacal focus on the customer experience.\u201d
\n\u201cSenior leaders \u2014 including board members \u2014 need to spend more time with those who wear the green apron,\u201d Schultz wrote, referring to the uniforms worn by Starbucks\u2019 rank-and-file workers. \u201cOne of their first actions should be to reinvent the mobile ordering and payment platform \u2014 which Starbucks pioneered \u2014\u00a0to once again make\u00a0it the uplifting experience it\u00a0was designed\u00a0to be.\u201d
\nSchultz, who served three terms as Starbucks\u2019 CEO and remains its largest individual shareholder, also called for an overhaul of the company\u2019s go-to-market strategy \u201cwith coffee-forward innovation that inspires partners and creates differentiation in the marketplace.\u201d
\nStarbucks last week released\u00a0earnings\u00a0showing a 1% year-over-year decline in revenue, with store sales falling 4%,\u00a0driven largely\u00a0by negative growth in North America and China.
\nThe company attributed its decline to factors that include a\u00a0tough\u00a0macroeconomic environment, slower-than-expected growth in China (its biggest market aside from the U.S.), severe weather, and ongoing caution among consumers.
\n\u201cThe remainder of our challenges were attributable to fewer visits from our more occasional customers,\u201d Starbucks CEO\u00a0Laxman Narasimhan\u00a0said on an earnings call.
\nThe chain\u2019s troubles are part of a broader trend of consumers avoiding\u00a0fast-food\u00a0eateries amid climbing prices.
\nFast-food traffic in the U.S. dropped 3.5% year over year in the first quarter of 2024, while prices at these restaurants were 33% higher in March than 2019 levels.
\nIn addition to Starbucks,\u00a0Yum Brands, owner of several chains,\u00a0reported\u00a0its\u00a0own\u00a0decline in sales last week, with\u00a0Pizza Hut\u00a0and\u00a0KFC\u00a0falling\u00a0a respective\u00a07% and 2%.
\n\u201cThis pattern underscores broader trends affecting the fast-food industry, including fluctuating\u00a0consumer spending\u00a0habits,\u201d PYMNTS wrote May 1. \u201cThe decrease in sales at Pizza Hut and KFC could\u00a0be linked\u00a0to a general reduction in discretionary spending, a sentiment echoed across the sector, including by peers like\u00a0McDonald\u2019s.\u201d
\nThe post Starbucks Ex-CEO Urges Leaders to Return to Stores appeared first on PYMNTS.com.
\n", "content_text": "Starbucks\u2019 former CEO said the chain\u2019s leaders\u00a0need to\u00a0spend more time at its stores.\nHoward Schultz\u00a0made the argument\u00a0on\u00a0LinkedIn\u00a0Sunday (May 5), days after the company reported its steepest drop in U.S. customer traffic in 14 years.\nTo combat that problem, Schultz said, Starbucks\u2019 leadership needs to focus on its stores, which he said require \u201cmaniacal focus on the customer experience.\u201d\n\u201cSenior leaders \u2014 including board members \u2014 need to spend more time with those who wear the green apron,\u201d Schultz wrote, referring to the uniforms worn by Starbucks\u2019 rank-and-file workers. \u201cOne of their first actions should be to reinvent the mobile ordering and payment platform \u2014 which Starbucks pioneered \u2014\u00a0to once again make\u00a0it the uplifting experience it\u00a0was designed\u00a0to be.\u201d\nSchultz, who served three terms as Starbucks\u2019 CEO and remains its largest individual shareholder, also called for an overhaul of the company\u2019s go-to-market strategy \u201cwith coffee-forward innovation that inspires partners and creates differentiation in the marketplace.\u201d\nStarbucks last week released\u00a0earnings\u00a0showing a 1% year-over-year decline in revenue, with store sales falling 4%,\u00a0driven largely\u00a0by negative growth in North America and China.\nThe company attributed its decline to factors that include a\u00a0tough\u00a0macroeconomic environment, slower-than-expected growth in China (its biggest market aside from the U.S.), severe weather, and ongoing caution among consumers.\n\u201cThe remainder of our challenges were attributable to fewer visits from our more occasional customers,\u201d Starbucks CEO\u00a0Laxman Narasimhan\u00a0said on an earnings call.\nThe chain\u2019s troubles are part of a broader trend of consumers avoiding\u00a0fast-food\u00a0eateries amid climbing prices.\nFast-food traffic in the U.S. dropped 3.5% year over year in the first quarter of 2024, while prices at these restaurants were 33% higher in March than 2019 levels.\nIn addition to Starbucks,\u00a0Yum Brands, owner of several chains,\u00a0reported\u00a0its\u00a0own\u00a0decline in sales last week, with\u00a0Pizza Hut\u00a0and\u00a0KFC\u00a0falling\u00a0a respective\u00a07% and 2%.\n\u201cThis pattern underscores broader trends affecting the fast-food industry, including fluctuating\u00a0consumer spending\u00a0habits,\u201d PYMNTS wrote May 1. \u201cThe decrease in sales at Pizza Hut and KFC could\u00a0be linked\u00a0to a general reduction in discretionary spending, a sentiment echoed across the sector, including by peers like\u00a0McDonald\u2019s.\u201d\nThe post Starbucks Ex-CEO Urges Leaders to Return to Stores appeared first on PYMNTS.com.", "date_published": "2024-05-06T09:56:50-04:00", "date_modified": "2024-05-06T09:56:50-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2022/02/starbucks.jpg", "tags": [ "Business", "Consumer Spending", "Digital Ordering", "food and beverage", "Howard Schultz", "News", "PYMNTS News", "QSRs", "Restaurants", "starbucks", "What's Hot", "Restaurant innovation" ] }, { "id": "https://www.pymnts.com/?p=1894855", "url": "https://www.pymnts.com/restaurant-innovation/2024/card-linked-offers-shape-data-access-and-personalized-offers-for-restaurants/", "title": "Card-Linked Offers Shape Data Access and Personalized Offers for Restaurants", "content_html": "With Small Business Week coming up\u00a0April\u00a029, it\u2019s a good time to focus on the restaurant sector, because according to\u00a0industry data, 90% of restaurants meet the\u00a0criteria.
\nIn fact, 70% of them are single-unit operations. And when you\u2019re dealing with the changing dining and payment preferences of the consumer, restaurants need to get as much data and promotional help as they can access.
\nPart of that data and promotion can come from card-linked offers. According to\u00a0PYMNTS Intelligence, 93% of consumers who use special savings or rewards attached to a merchant or product say they plan on maintaining or increasing their use in the next year.
\nAs Steve Fusco, president at\u00a0Rewards Network, told PYMNTS, card-linked offers can be the key to accessing data and partnerships to deliver the best options, in the right context, to consumers.
\nThe conversation came together on the heels of\u00a0the announcement in early April that\u00a0J.P. Morgan Chase had launched a retail media network, Chase Media Solutions, enabling personalized advertising within the banking sector. The approach\u00a0is one that uses\u00a0transaction-level data to target, craft\u00a0and\u00a0deliver personalized offers. Rewards Network\u2019s\u00a0own\u00a0offers have been made available via Chase for more than a year.
\nSaid Fusco: \u201cIf you look at what Chase is doing with CMS, this has been our\u00a0go-to\u00a0market approach,\u201d and offers that this is \u201can example of how to use our content in different ways.\u201d
\nRewards Network was founded in the 1980s, and was among the first platforms to fashion card-linked offers, said Fusco. Rewards Network now has over 20,000 restaurants in its network, all offering rewards through this platform.
\nAsked about Rewards Network\u2019s\u00a0own\u00a0partnership efforts, Fusco said getting the right alliances in place remains \u201cvery, very important in this ecosystem.\u201d Rewards Network\u2019s approach, he said, is to find partners with significant size and scale.
\n\u201cYou\u2019re looking for a partner with a diverse membership base that has a demonstrated engagement with a valued currency,\u201d he said. For the Rewards Network platform, he said, valued currencies are miles and points as well as cash back or statement credits, all of which the platform enables.
\nDiners who are members of Reward Network\u2019s participating airline and hotel loyalty programs and fuel savings programs among others, earn rewards (points or cash back) as they eat at independent restaurants advertising to those consumers. For the customers themselves, having a large inventory of relevant offers presented to them, on a tailored one-to-one basis, proves valuable as well.
\n\u201cEach partner brings in a different type of diner,\u201d said Fusco, who added, \u201cWe also recognize that local dining is a very important value differentiator to our partners \u2014 and they see that [dining out] is a critical way of engaging their member bases \u2026 regardless of geography or preferences.\u201d\u00a0
\nRewards Network, he said, has a\u00a0broad-based, real-time view of the industry, as it works with fine-dining establishments, fast-casual restaurants, quick serve, and everything in between.
\nWith the ever-increasing trove of data on hand, Fusco said, \u201cIt\u2019s less a question of whether or not a dining offer will be relevant \u2014 it\u2019s more a question of which dining offer will be relevant. We connect with them, in context, when they\u2019re in the restaurant, and we reinforce that they\u2019re receiving a reward.\u201d
\nVerified reviews, he said, are another platform feature that helps restaurants better manage their operations and dining experience at a granular level, right down to the menus offered.
\n\u201cWe\u2019re able to conduct \u2018relevance engine data mining,\u2019\u201d Fusco said, \u201cenabling us to provide a restaurant owner, across a large number of locations, with specific call-outs on the experience that their customers are having.\u201d
\nAs he told PYMNTS, \u201cWe\u2019re able to observe peoples\u2019 preferences and offer up relevant opportunities to earn rewards in any major market, across the spectrum of dining opportunities.\u201d
\nThe post Card-Linked Offers Shape Data Access and Personalized Offers for Restaurants appeared first on PYMNTS.com.
\n", "content_text": "With Small Business Week coming up\u00a0April\u00a029, it\u2019s a good time to focus on the restaurant sector, because according to\u00a0industry data, 90% of restaurants meet the\u00a0criteria. \nIn fact, 70% of them are single-unit operations. And when you\u2019re dealing with the changing dining and payment preferences of the consumer, restaurants need to get as much data and promotional help as they can access.\nPart of that data and promotion can come from card-linked offers. According to\u00a0PYMNTS Intelligence, 93% of consumers who use special savings or rewards attached to a merchant or product say they plan on maintaining or increasing their use in the next year. \nAs Steve Fusco, president at\u00a0Rewards Network, told PYMNTS, card-linked offers can be the key to accessing data and partnerships to deliver the best options, in the right context, to consumers.\nThe conversation came together on the heels of\u00a0the announcement in early April that\u00a0J.P. Morgan Chase had launched a retail media network, Chase Media Solutions, enabling personalized advertising within the banking sector. The approach\u00a0is one that uses\u00a0transaction-level data to target, craft\u00a0and\u00a0deliver personalized offers. Rewards Network\u2019s\u00a0own\u00a0offers have been made available via Chase for more than a year.\nSaid Fusco: \u201cIf you look at what Chase is doing with CMS, this has been our\u00a0go-to\u00a0market approach,\u201d and offers that this is \u201can example of how to use our content in different ways.\u201d \nRewards Network was founded in the 1980s, and was among the first platforms to fashion card-linked offers, said Fusco. Rewards Network now has over 20,000 restaurants in its network, all offering rewards through this platform.\nAsked about Rewards Network\u2019s\u00a0own\u00a0partnership efforts, Fusco said getting the right alliances in place remains \u201cvery, very important in this ecosystem.\u201d Rewards Network\u2019s approach, he said, is to find partners with significant size and scale.\nDiverse Membership, Partnerships That Scale\n\u201cYou\u2019re looking for a partner with a diverse membership base that has a demonstrated engagement with a valued currency,\u201d he said. For the Rewards Network platform, he said, valued currencies are miles and points as well as cash back or statement credits, all of which the platform enables. \nDiners who are members of Reward Network\u2019s participating airline and hotel loyalty programs and fuel savings programs among others, earn rewards (points or cash back) as they eat at independent restaurants advertising to those consumers. For the customers themselves, having a large inventory of relevant offers presented to them, on a tailored one-to-one basis, proves valuable as well.\n\u201cEach partner brings in a different type of diner,\u201d said Fusco, who added, \u201cWe also recognize that local dining is a very important value differentiator to our partners \u2014 and they see that [dining out] is a critical way of engaging their member bases \u2026 regardless of geography or preferences.\u201d\u00a0\nRewards Network, he said, has a\u00a0broad-based, real-time view of the industry, as it works with fine-dining establishments, fast-casual restaurants, quick serve, and everything in between. \nWith the ever-increasing trove of data on hand, Fusco said, \u201cIt\u2019s less a question of whether or not a dining offer will be relevant \u2014 it\u2019s more a question of which dining offer will be relevant. We connect with them, in context, when they\u2019re in the restaurant, and we reinforce that they\u2019re receiving a reward.\u201d \nVerified reviews, he said, are another platform feature that helps restaurants better manage their operations and dining experience at a granular level, right down to the menus offered.\n\u201cWe\u2019re able to conduct \u2018relevance engine data mining,\u2019\u201d Fusco said, \u201cenabling us to provide a restaurant owner, across a large number of locations, with specific call-outs on the experience that their customers are having.\u201d\nAs he told PYMNTS, \u201cWe\u2019re able to observe peoples\u2019 preferences and offer up relevant opportunities to earn rewards in any major market, across the spectrum of dining opportunities.\u201d\nThe post Card-Linked Offers Shape Data Access and Personalized Offers for Restaurants appeared first on PYMNTS.com.", "date_published": "2024-04-26T04:02:22-04:00", "date_modified": "2024-04-28T17:18:52-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/04/restaurant-rewards-network-2-TV-overlay.jpg", "tags": [ "card-linked rewards", "customer data", "data analysis", "Data Mining", "Featured News", "News", "PYMNTS News", "pymnts tv", "Restaurant innovation", "rewards & loyalty", "Rewards Network", "Small Business Week", "Steve Fusco", "video" ] }, { "id": "https://www.pymnts.com/?p=1888267", "url": "https://www.pymnts.com/restaurant-innovation/2024/ghost-kitchens-vanish-as-in-person-dining-returns/", "title": "Ghost Kitchens Vanish as In-Person Dining Returns", "content_html": "The ghost kitchen industry has become a shadow of its former self.
\nThese\u00a0online-only dining spaces boomed during the pandemic, but as a report Friday (April 12) by The New York Times (NYT) noted, they\u2019ve since begun to fade.\u00a0
\nFor example, the report said, commercial real estate company CBRE predicted in 2021 that ghost kitchens would make up a little more than a fifth of all restaurant sales by 2025. But once the pandemic waned and people began dining in person again, restaurants became overburdened and had to rethink their strategies, with brands like Wendy\u2019s and Kroger\u2019s scaling back their ghost kitchen operations.
\n\u201cConsumers are going out to eat at restaurants again and craving that relationship with the brands themselves,\u201d\u00a0Dorothy Calba, a senior research analyst for food service at\u00a0Euromonitor International, told NYT. \u201cVirtual brands just did not have that connection with consumers.\u201d
\nThe report cited the example of Brinker International, owner of\u00a0Chili\u2019s\u00a0and\u00a0Maggiano\u2019s Little Italy. The company launched two virtual brands: It\u2019s Just Wings and Maggiano\u2019s Italian Classics, initially popular with diners tired of home cooking.
\nBut as in-person dining returned, Brinkers found it could not juggle both physical and virtual operations, leading the company to close down Maggiano\u2019s Italian Classics and incorporate It\u2019s Just Wings offerings onto its restaurant menus.
\n\u201cEveryone thought if you have the labor and the equipment, it would be easy to run virtual brands, but the reality is, most of the delivery times for virtual brands transact during busy times for the regular restaurant,\u201d said Kevin Hochman, Brinker\u2019s chief executive. \u201cIt was too much to have a busy dinner rush with an influx of virtual orders coming in, too.\u201d
\nAs noted here last year, research by PYMNTS Intelligence has shown that a majority of consumers \u201cwant to know that their food is coming from somewhere with a tangible, brick-and-mortar presence.\u201d
\nThat report \u2013\u00a0\u201cConnected Dining: The Robot Will Take Your Order Now,\u201d \u2014 found that of the 48% of diners who do enjoy ordering from virtual kitchens, 30% said this interest comes at least in part from the fact that these digital restaurants require no interaction with other people.
\nThat report also notes \u2014 as did the recent NYT piece \u2014 that the rapid proliferation of virtual brands has come with complaints about quality. It led Uber last year to remove 8,000 virtual restaurants\u00a0from its marketplace, a reduction of 20%.
\n\u201cWith the boom in virtual restaurants over the past several years, we\u2019ve noticed a wide range of approaches to creating virtual restaurant brands,\u201d John Mullenholz, Uber\u2019s head of virtual restaurants and dark kitchens for the U.S. and Canada, said in a statement at the time.
\nThe post Ghost Kitchens Vanish as In-Person Dining Returns appeared first on PYMNTS.com.
\n", "content_text": "The ghost kitchen industry has become a shadow of its former self.\nThese\u00a0online-only dining spaces boomed during the pandemic, but as a report Friday (April 12) by The New York Times (NYT) noted, they\u2019ve since begun to fade.\u00a0\nFor example, the report said, commercial real estate company CBRE predicted in 2021 that ghost kitchens would make up a little more than a fifth of all restaurant sales by 2025. But once the pandemic waned and people began dining in person again, restaurants became overburdened and had to rethink their strategies, with brands like Wendy\u2019s and Kroger\u2019s scaling back their ghost kitchen operations.\n\u201cConsumers are going out to eat at restaurants again and craving that relationship with the brands themselves,\u201d\u00a0Dorothy Calba, a senior research analyst for food service at\u00a0Euromonitor International, told NYT. \u201cVirtual brands just did not have that connection with consumers.\u201d\nThe report cited the example of Brinker International, owner of\u00a0Chili\u2019s\u00a0and\u00a0Maggiano\u2019s Little Italy. The company launched two virtual brands: It\u2019s Just Wings and Maggiano\u2019s Italian Classics, initially popular with diners tired of home cooking.\nBut as in-person dining returned, Brinkers found it could not juggle both physical and virtual operations, leading the company to close down Maggiano\u2019s Italian Classics and incorporate It\u2019s Just Wings offerings onto its restaurant menus.\n\u201cEveryone thought if you have the labor and the equipment, it would be easy to run virtual brands, but the reality is, most of the delivery times for virtual brands transact during busy times for the regular restaurant,\u201d said Kevin Hochman, Brinker\u2019s chief executive. \u201cIt was too much to have a busy dinner rush with an influx of virtual orders coming in, too.\u201d\nAs noted here last year, research by PYMNTS Intelligence has shown that a majority of consumers \u201cwant to know that their food is coming from somewhere with a tangible, brick-and-mortar presence.\u201d\nThat report \u2013\u00a0\u201cConnected Dining: The Robot Will Take Your Order Now,\u201d \u2014 found that of the 48% of diners who do enjoy ordering from virtual kitchens, 30% said this interest comes at least in part from the fact that these digital restaurants require no interaction with other people.\nThat report also notes \u2014 as did the recent NYT piece \u2014 that the rapid proliferation of virtual brands has come with complaints about quality. It led Uber last year to remove 8,000 virtual restaurants\u00a0from its marketplace, a reduction of 20%.\n\u201cWith the boom in virtual restaurants over the past several years, we\u2019ve noticed a wide range of approaches to creating virtual restaurant brands,\u201d John Mullenholz, Uber\u2019s head of virtual restaurants and dark kitchens for the U.S. and Canada, said in a statement at the time.\nThe post Ghost Kitchens Vanish as In-Person Dining Returns appeared first on PYMNTS.com.", "date_published": "2024-04-14T16:10:43-04:00", "date_modified": "2024-04-14T16:10:43-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/04/ghost-kitchen.jpg", "tags": [ "connected dining", "ghost kitchens", "in-person dining", "News", "PYMNTS News", "Restaurant innovation", "Restaurants", "virtual restaurants", "What's Hot" ] } ] }