Paytronix have released their new, 2023, Online Ordering Report and you can download it here.
As the industry undergoes significant transformations, the once limited domain of third-party delivery has expanded into a diverse range of channels, each appealing to distinct demographic segments based on factors such as generation, income, and brand preference.
With the current economic uncertainties, it is clear that the evolution of online ordering is far from over. In response to the pandemic, restaurants and convenience stores have embraced new technologies to meet changing consumer expectations. However, the adoption of various technologies has resulted in complex and cumbersome tech stacks that lack integration.
Fortunately, this presents an opportunity for the next phase of online ordering: aligning it with other systems. For food establishments, this alignment translates to a leaner workforce, seamless integration with loyalty programs, and, most importantly, a personalised guest experience. By consolidating the advancements made during the pandemic, the focus shifts back to the individual ordering the food, creating a mutually beneficial scenario.
The field of online ordering is continuously evolving, with new advancements emerging. Stay ahead of the curve by downloading this guide, where Paytronix will provide you with the latest updates and insights in this year’s report.
Download the 2023 report for informative insight, here are some of the highlights:
Tipping habits driving loyalty
Orders without tips have held steady, even in the face of rising inflation. Tip percentage on orders with tips have fallen, while the dollar amount of tips has risen slightly with inflation.Good tippers are invaluable to restaurants and, to a lesser extent, convenience stores. These guests return more often and leave better reviews. The data seems to indicate that several ordering trends correlate to age. This may mean that younger generations will have different online- ordering habits.
Online ordering habits
The majority of online orders are placed by Older Millennials and Generation X. Gen Z is gaining ground, but not enough to displace older generations. In terms of habits, the Baby Boomers as a population are the best guests: They tip better, visit more frequently, and leave better reviews.
Online ordering creating a new paradigm
The total number of orders has held steady as the pandemic has receded. As customers return to their favourite brands, online ordering has maintained a steady following, with first-party ordering responsible for the growth in orders. The share of takeout orders has increased as a proportion of online orders, with over 60% of online orders for takeout. Delivery customers tend to be older, tip better, and purchase more frequently than takeout customers. While they require additional infrastructure to serve, they are a guest segment worth having.
First Party Ordering has the advantage
Order more, higher-value items more frequently than third-party customers; Tend to tip larger amounts; and are more likely to be part of a brand’s loyalty program.
Reviews, not having them, is not good!
While they still make up the majority, the percentage of 5-star ratings has fallen to a two- year low as guests express dissatisfaction with post-pandemic dining conditions. A 5-star rating correlates to a number of other positive attributes. Guest who rate highly tend to return sooner, tip better, and order more frequently in advance. As shown in the case study following this section, responding to a review increases both order frequency and ratings (even if that response is written by artificial intelligence).
The report is full of insight that will support and guide you on your online ordering journey, click below to download the report
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