The restaurant industry is undergoing a digital transformation.
While 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’s center — and will define its future.
“Today’s diners want a seamless experience that’s 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,” 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 “Why More Restaurants Need to Bite Into Digital Transformation” which was produced by PYMNTS Intelligence in collaboration with American Express.
The convenience and speed offered by these payment technologies are becoming indispensable in enhancing the dining experience, she added.
That’s why developing convenient and seamless digital payment and ordering capabilities should be top of mind for all restaurants looking to cater to their customers’ 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.
On the business side, restaurants are equally driven to embrace innovation by the need to keep up with diners’ emerging behavioral demands.
According to American Express’ 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.
As 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.
“In 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 — meaning there are significant opportunities to enhance the service, with touchpoints supported through user-friendly technology,” Fox explained.
She highlighted platforms like Resy, which not only facilitate reservations but also offer additional functionalities.
“For example, Resy can help restaurants upgrade the front end of the house experience while providing value behind the scenes,” Fox said.
Resy 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.
“By adopting modern payment solutions, restaurants can provide a seamless experience for diners as well as operators on the back end,” 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.
Restaurants must be creative in how they work to stand out within the crowded dining landscape.
For restaurant operators exploring new payment solutions and innovations, Fox’s advice is to maintain a keen understanding of customer preferences and stay informed about technological advancements.
“The advice I would give restaurant operators in staying abreast is to stay open-minded, stay up to date with your customers’ needs, and stay on top of relevant technology and trends,” she said. “In this way, restaurants can focus on what they do best, and that’s serving the diners and providing them with best-in-class service.”
As 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.
The 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.
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