How Restaurants can Survive a Revolution in Takeout & Delivery Sectors

Traditional restaurants are increasingly finding themselves in big trouble. Millennials, judging by some studies, are either more independent or antisocial than their parents. It depends on how people would like to define the terms, but in either case it spells disaster for the industry because it means that fewer people with disposable incomes will be eating out in the near future.

Some industry analysts are predicting much the same behavior from members of the so-called Generation Z, which includes those born in the mid-1990s. As these people come of age, they're going to want to communicate with the brands they love through the Internet. After all, they're the first generation of consumers who can't remember a time when Internet technology wasn't easily accessible.

Fortunately, companies can continue to make money in this kind of environment regardless of how different shopping habits have become. Firms need to leverage delivery and takeout services if they plan on surviving.

Delivery & Takeout Services Driven by Millennial Demand

Pundits have opined that Millennials and members of Generation Z don't care to go out to eat, but that doesn't mean that they don't want restaurant-quality food. The recent growth in the number of delivery apps would suggest that they'd be more interested in having food delivered as they sit and home and enjoy online streaming media. The rise of delivery services like Uber Eats and other similar companies seems to back this idea up.

In spite of this apparent focus on the world directly around them, people who fall in these age groups aren't just interested in the food itself. Many have expressed the wish to buy only from brands that do good for the local community. Companies that hold food-based fundraisers have been able to attract customers who wouldn't otherwise show much interest.

Some firms have gone so far as to capitalize on this idea by encouraging Millennial participation through raising money for good causes. This kind of marketing focuses on the idea that these consumers might very well be impressed by such efforts and recommend a particular business to their friends.

Perhaps more importantly, they're also likely to share recommendations on social media.

Leveraging the Power of Technology to Recapture this Market Segment

Social media posts might actually matter more to this demographic than any other form of advertising, but that's not the only way that some restaurants have tried to leverage technology. Some establishments that use a traditional POS system for food service orders have installed hasty upgrades in the hopes of improving payment flexibility.

Younger audiences value the ability to use whatever payment method they've personally adopted. Apple recently announced a new card, which has helped attract attention to restaurants that are already capable of accepting the new method.

Some particularly forward-thinking delivery services have converted to POS devices that allow consumers to buy their meals with cryptocurrency. This isn't particularly common as of yet, but those who want to capture a technologically-savvy segment of the market are looking into it.

At the same time, other restaurants have begun taking PayPal. Millennials and even many older consumers have had problems with the fact that certain retailers won't accept PayPal. Considering that some businesses now actually fulfill employee salaries with it, restaurants may want to work with POS devices that support PayPal.

Promoting a Delivery and Takeout Business

Since the industry is growing, it's quickly become rather saturated. This can make promotion a difficult proposal for small business owners.

At the same time, the percentage of millennials who visit traditional restaurants multiple times during a week has fallen to just over half. This has made it difficult for advertisers to come up with ways to share their message that will actually excite younger consumers enough to get them to open their wallets.

On the other hand, takeout sales have topped $40 billion so there's certainly an incentive to at least try.

Word-of-mouth advertising from the previously mentioned charity fundraisers has been a large portion of what's going on, but some companies are looking into social media influencers as a way of slowly convincing to order out during special events.

Others have focused on trying to attract attention by serving areas that hadn't previously had access to delivery. Consumers in New Jersey quickly adopted new food delivery services when they became available in 2018.

Perhaps the most innovative firms have experimented with marketing through new media. Internet radio stations are expected to continue to grow in terms of partnership through at least 2024, which makes them an attractive option for advertisers focused on millennial shoppers.

Surviving and Thriving in Any Situation

Adapting to these kinds of changes can be difficult for restaurants that have never offered delivery and takeout services before. However, small businesses that already have at least some presence in the market can use that to their advantage. Always make sure to build on whatever you've done in the past. That will help avoid wasteful spending in the near future. Best of all, firms that do so will be able to weather the storm without losing the clientele they've already built up.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.