Restaurant sales

Report: Digital orders make up a third of restaurant sales

A new report from Patronix Systems Inc., a digital customer experience platform, found that digital orders have grown to one-third of total restaurant and convenience store food orders, up from just 12% before the pandemic. While in-store sales remain down nearly half, digital orders remained high at 113% of pre-pandemic levels, according to a press release.

“Our ‘new normal’ means the digital customer experience is no longer secondary to the physical experience, it’s front and center and marks one of the biggest changes I’ve seen in 20 years of working with brands,” Andrew Robbins, CEO of Paytronix, said in the statement. “The opportunity for brands to use AI to make experiences more personalized is huge. Learn directly from customers, present them with recommendations that resonate, and instantly respond to their feedback with a personalized message from the Store Manager, Elevate brands that rely on their ability to connect with their guests.”

  • Among the findings of the “Paytronix Order & Delivery Report 2022: Navigating the Digital New Normal” report:
    Increase in take-out orders. While delivery was king before and during the peak of the pandemic, more recent data indicates that take-out orders are now dominating digital orders, with numbers even higher than before the pandemic. Takeout has gone from about 35% of orders in January 2020 to a majority in March 2022, a trend that seems to be increasing.
  • Third-party delivery is here to stay. Third-party services will continue to play an important role in a customer acquisition strategy. To succeed in today’s new normal, restaurants and convenience stores must embrace new technologies and third-party options and explore how to successfully integrate them into existing operations.
  • Delivery customers are different. For much of 2021, the average delivery tip was 12.5% ​​of the subtotal, more than double takeout tipping. And takeout orders in 2021 included a tip just 37% of the time, compared to nearly 73% of delivery orders. Delivery customers are also more loyal, with 31% of orders coming from repeat customers.
  • Customer feedback. Safeguarding a customer relationship pays off. Paytronix data shows that issuing a coupon costs a restaurant $2.30 on average, but results in a $9.20 increase in that customer’s lifetime value. This 4x ROI means a timely customer recovery strategy is a must.
  • AI is essential to gauge customer sentiment. Fifteen percent of reviews with a rating of 4.5 or higher actually have negative sentiment and could benefit from action, while 3-star reviews most often contain negative sentiment.