Are takeaway services reshaping the hospitality industry for better or worse?
Just Eat, Deliveroo, and UberEATS, came to the UK in 2019 and have grown ever since. Since then, a significant number of restaurants in the country are available on takeaway services and I think it’s changed the way customers see restaurants.
I’ve worked in the industry for around 6 years in every position possible so am writing this with a combination of marketing and insider experience. I was a chef when restaurants started picking up these services back in 2019 (yes, that beeping still haunts me), and greeted takeaway drivers as a host just last year.
This article will be examining how different brands try to attract customers through their doors and how takeaway services are making that difficult. Some other key factors will be touched on, such as food quality and rising prices, but that’s not the focus here.
Why do you Eat at a Restaurant?
From my experience as a server, I’ve observed 3 key reasons for why someone would eat out instead of cook in.
To Celebrate an Occasion
Restaurants make the most money during service from customers out to celebrate an occasion such as a birthday, promotion at work, or a date. This is because these groups are likely to go “all out” and order more drinks and bigger dishes than usual. These customers are also likely to be in a group of 6 to 10 people, meaning more money spent overall.
Whilst this reason does make the restaurant the most money, it does rely on a consistent level of high-quality service since this type of customer will often choose to dine at the restaurant. This can be difficult to achieve if previous experiences have been negative, which can sometimes be completely out of the restaurants control (a busy dinner service resulting in a long wait for food) and is even harder to manage when a restaurant is part of a chain with multiple locations.
This group will often come in the evening and are not effected much by the sway of takeaway services. They’re coming for an occasional which includes the vibe, the convenience, the service, and anything else that the restaurant offers.
For Convenience / Spontaneous Dining
This customer will often come into the restaurant during the day (10am-5pm) simply because they’re nearby and want to eat. This is the most common type of customer however they often don’t order much or anything big, resulting in less money spent but consistent business.
These customers are not typically affected by takeaway services, as they are often on the move and not at a fixed delivery address. This could change however as back in 2016 some pizza takeaways were trailing a “deliver to your location” service where a driver would meet you at a pinpointed location. This was dropped however I can see some services picking up this option down the line to tackle this type of customer, especially during the summer when it’s nice to sit outside and eat.
For the Food
These customers will come to a restaurant because they liked the food last time they were there, have heard good things and want to try it out for themselves, or there is a certain dish they love. These are the best type of customer for restaurants as they’re often repeat customers, however they’re unpredictable and usually only come for 1 dish which sometimes could be a loss leader. This does get customers through the door but then relies on them ordering several drinks or more expensive dishes to make up for the initial loss.
Takeaway services are a threat to restaurants with these customers as if they can order the food at home then they have no reason to come to the restaurant.
How do Restaurants Attract Customers?
A little insider information here, but there are only 3-5 big food supplies that serve the majority of chains and restaurants in the UK. It’s only the seasoning, way of cooking, sauces, and any additional modifications that changes the flavour.
This means that most chains rely on the experience to get customers through the doors. They’re aiming to create a unique experience that’s good, memorable, and that you tell others about. For example, TGI Fridays staff will sing and dance if it’s your birthday, Harvester has a free unlimited salad bar and is cheap, and Wagamama’s imitates a traditional Japanese noodle bar. Appropriate music, crockery, and décor is then used to enhance the vibe they’re aiming to create.
These experiences do play a small subconscious role on where you decide to eat out it the feelings (or vibe) you experienced is stored in your long term memory. Studies have shown that we often forget what exactly was said or what happened during an event, but we remember how the event made us feel and then remember the specifics around that. We see this most often in political debates where a candidate will make a funny remark (or “zingers” as they’re officially called) and that’s what remembered from the debate months later.
However, I wouldn’t say they’re a big reason for why customers choose one restaurant over another. If it’s for an occasion then it plays a bigger role, specifically birthdays and whatever the restaurant does for them, but for a spontaneous dinner date the experience isn’t taken too much into account.
How has Takeaway Services Changed our Eating out Behaviour?
Back in the day, you would usually only ever get Asian cuisine or Kebab delivered to your home. Some restaurants offered a “pick up” service but these were limited and did require you to go to the location. It’s completely different today with almost every restaurant in the country being available through a takeaway service. Not only is every restaurant food available through takeaway, but now every restaurant in your area is accessible through a single app which makes it even easier to browse choices and place an order.
The app is where the real change has happened as it’s now ridiculously easy to order from anywhere without the need to have physical menus, speak to someone on the phone, or deal with any of the minor inconveniences of ordering in person. You simply open the app, browse, place your order, and it then turns up at your door. All of your favourite dishes are now available at almost no effort to yourself, and you don’t even need to worry about having cash on you.
This mostly effects the Spontaneous Dining (if in a fixed location) and For the Food customers since they can now order from the comfort of their home however doesn’t effect the Occasions customer as much. In my experience, families will always prefer to go out for a meal instead of order food in as this turns the evening from a simple dinner to an experience. I’d also include the older generation in this category as many of them find peace and enjoyment when being in a restaurant.