Why is Omnichannel a Must for All Restaurants?
As many of you may know, the “Diffusion of Innovation Theory” was developed by E.M. Rogers In 1962, and it is one of the oldest social science theories of modern times as we know it. This theory tried to explain how a new idea or product gains momentum and spreads through a social system.
This theory states that a product or service becomes mainstream when a 15% adoption rate has been achieved. A recent poll conducted by the National Restaurant Association in the US found out that more than 75% of consumers look up menus while 51% of them order takeout or delivery online. So, it’s safe to say that old adoption rates for innovations do not apply anymore, and omnichannel shopping has already become mainstay in our daily lives.
How do we define omnichannel? It is basically making sure that your customers are able to order and pay for food or receive assistance by using multiple channels, and that all these channels are somehow seamlesly connected and also consistent with each other.
Here’s a list of these channels in omnichannel:
1-) “In Person” (at a table-service and quick-service restaurant)
2-) “Online” (takeout or delivery)
3-) “Over the Phone” (takeout or delivery)
4-) “In Person” (with a delivery person)
5-) “In App” (mobile ordering)
6-) “On a Kiosk” (via credit card)
Why should omnichannel be so important for restaurants? The answer is in the age groups.
Millenials (1981–1995) rely on a variety of digital and social channels on their way to purchase practically anything. And, they are considered “heavy users” of technology. Moreover, Generation Z (1996–2010) is slowly coming of age, and as “true digital-natives” they are demanding high-tech services from restaurants. Collectively, these age groups will account for 63% of the global population in 2020 according to a study conducted by Bloomberg.
A study done by Payments.com stated that digital restaurant sales are projected to grow exponentially over the coming years from 6% in 2017 to 30% by 2025.
Concepts such as “Ghost Kitchens” have come to life thanks to wide-spread use of technology with these groups. So as to survive in these uncertain times, restaurants will need to adapt and modify their operating strategy to attract these highly digital customer groups. Whether it’s an online reservation and table management system or a loyalty application with integrated payment option or a mobile reporting tool, today’s restaurants need a reliable technology partner more than ever.
PROTEL has been there for many restaurants and hotel chains across the Middle East for over 30 years. Please contact our Dubai office to discuss your needs and how we can help you solve them.
