The article is relatively long and mostly, in English. But it would be a shame to miss the figures, findings and strategic thoughts that McKinsey & Company has gathered in this study that reviews 6 months of health crisis.
How will business models evolve? What are the strong, emerging or reinforced trends that the sector is seeing emerge in the context of Covid-19 - and which we can already see are here to stay? What (powerful) role does digital play, without compromising the point-of-sale experience, which is evolving more or less radically depending on the profile of the restaurants and chains?
... and the catering sector in all this? (hint: CRS is already in the game)
To save you time, we've selected the strongest numbers, data and insights from the study. Let's get started!
1- What to remember about the context
- In France, as in the rest of Europe, restaurants are resuming their activity in a context marked by waves of contamination, legal constraints including the reduction of the capacity of reception (and social distancing), as well as the concerns expressed or felt by their customers.
- The market will not return to normal in terms of consumer expectations and behavior.
- The quality/price ratio and the search for "healthy" options are on the rise
- Sales are picking up, especially for fast food restaurants.
And with these trends in mind... what do you need to change, as a restaurateur, to secure your future?
2- Double or nothing? The 3 axes of evolution that will make the difference
According to the results of the McKinsey investigation, 3 key areas stand out:
- the multi-channel strategy (including online ordering)
- menu optimization
- the birth of new business models
Omnichannel growth: numbers, trends and opportunities
- The pandemic has accelerated the use of digital channels (adoption, but also increase in use): delivery, Click and Collect, contactless...
- "Staying in is the new going out": according to Deliveroo figures, Friday and Saturday night orders have increased by 36% across Europe(+16% in France)
- Telecommuting is affecting restaurants, especially in office locations, but the increase in breakfast and lunch orders represents new opportunities.
- 1%: the share of consumers who tried home delivery for the first time in the context of the health crisis (compared to 4% in Germany)
- 13%: the share of existing customers who have increased their order frequency
- 35-55%: the proportion of customers across Europe who are willing to continue to use these services more in the coming months (McKinsey study)
- The massive adoption of delivery poses the question of adapting to this new model (according to the modalities specific to the profile of each store), and accelerates the development of the Dark Kitchen model.
- Pre-ordering and Click&Collect are booming, allowing restaurateurs to smooth out peak hours and offer payment alternatives that meet the demands of the health environment
Improving the point-of-sale experience
Here again, digital resources play an important role.
- The data collected can help minimize team interactions and optimize restaurant life planning.
- Data also allows us to better target and retain consumers according to their profile and preferences.
- Onsite, ordering at the table via an app enhances customer protection while increasing the average basket.
Adaptation of the offer and menus
Consumer trends
- Beyond the context of Covid-19, strong trends have emerged over the last 3 years: the search for healthy and sustainable food and the strengthening of the demand for vegan offers.
- In terms of home delivery, Deliveroo has seen a pronounced demand for products that are difficult to replicate or cook at home, such as desserts.
Compatibility with the delivery
- Making sure your products don't lose quality during delivery is crucial. 23% of negative reviews found by Deliveroo in 2019 mention food temperature!
- A watchword: be "delivery-friendly".
Quality / price ratio
- 35% of those surveyed by McKinsey believe they will be cutting back on their delivery or takeout budget in the coming weeks.
- The article suggests exploring ways for foodservice and delivery players to collaborate in order to create new joint strategies to reach customers.
Kitchen kits at home
Previously reserved for a niche market (7% of the under-35s in Great Britain, for example), these offers have grown in importance in the context of the health crisis and suggest a significant potential.
3- Evolution of restaurant business models
The pandemic has accelerated the creation or reinvention of models: joint offers between restaurants and grocery stores, the launch of direct delivery between wholesalers and consumers... in the coming months, restaurateurs will have to adapt to a rapidly changing market.
- Closing physical sites or negotiating rents according to locations: the question arises for many brands.
- The 100% dedicated delivery model (like Dark Kitchens) is growing faster, with a 75-80% reduction in personnel costs.
- Innovative partnerships and mergers and acquisitions continue to take place in the sector. This was and is also the case in foodservices (acquisition of Feedr by Compass, Sodexo and FoodChéri...).
McKinsey believes that an ever-increasing convergence between B2B and B2C is to be expected.
Find the entire article at this address.
