In the opening two articles of the series, we focused on consumer reactions to dining disruptions that emerged from COVID-19. Do people really want QR codes to stick around? How should orders be placed in and outside the four walls? (read the answers here). But now, it’s time to get elemental.
The decision-makers and motivators behind why guests show up (and what’s keeping them out) haven’t changed all that much. Generations show different preferences and nuanced ticks, yet overall, even with habits adjusting in the wake of technology, people still want quality food. In TouchBistro’s report, 67 percent of consumers said that remains the most important factor in deciding where to eat. Next was cuisine type and value for money (both at 54 percent).
As for generations, Gen Z diners were more likely to factor in recommendations from family and coworkers, as well as dietary restrictions when deciding on a restaurant, compared to older demographics.
How diners decide where to dine:
- Quality of food: 67 percent
- Type of cuisine: 54 percent
- Value for money: 54 percent
- Convenient location: 51 percent
- Deals/specials being offered: 31 percent
- Recommendations of family/significant other: 28 percent
- Recommendations of friends/colleagues: 26 percent
- Online reviews/ratings: 18 percent
- Dietary restrictions/preferences: 8 percent
- Curated lists (top 10 new restaurants, etc.): 7 percent
- Recommended by an influencer online: 7 percent
- Popularity on social media: 6 percent
- Other: 2 percent
- None of the above: 2 percent
Cuisine type and food quality remain lead draws. Value for money, as noted, was part of the top three list, too. This was especially true in the survey for younger diners who aren’t as financially matures as older ones. That group was slightly more influenced by how much a meal will cost, with a half (49 percent) of Gen Z ranking value for money among their top three consideration points.
Decided to try a new restaurant based solely on the following
- Type of cuisine: 84 percent
- Convenient location: 82 percent
- Quality of food: 80 percent
A shift in discovery patterns was hardly a COVID pivot, but it did hypercharge alongside digital adoption. Guests became familiar with searching a restaurant’s digital footprint simply to see if it was open, or offering carryout, and so forth. That raised the stakes on the backend, from independents to franchises, to ensure they could meet consumers where they wanted to be.
Overall, Gen Z and millennial diners in the survey said they tend to be swayed by what they see online. More than half (52 percent) of Gen Zers decided to try a new restaurant based entirely on positive social media feedback. For millennials, positive online reviews were the No. 1 motivator at 67 percent.
Inversely, Gen X and Boomer customers still lean on word-of-mouth reviews from people they know. Eighty-three percent of Gen Xers said they’ve visited a new restaurant solely due to recommendations from friends or coworkers, while 80 percent of Boomers decided to try a new spot based on feedback from family or significant others.
A digital menu remains a must. Across generations, the No. 1 thing nearly all diners in TouchBistro’s survey said they do before deciding to try a restaurant is look at the menu online. Similarly to 2022, 85 percent reported always or often doing so. Additionally, 33 percent always look at the restaurant’s website and a quarter check out reviews.
“This illustrates that online menus are paramount,” the company said, “and it means restaurants must ensure their websites are both easily searchable and user friendly.”
Although social media ranked lower on the list of things diners check, 27 percent of Gen Z noted they always look there, and 23 percent of millennials agreed—so it’s still worth operators’ time to keep those channels up to date, even if they may not always be the driving force for everybody, TouchBistro added.
Steps diners always/often take before deciding on a new restaurant
- Look at the restaurant’s menu online: 85 percent
- Look at their website: 80 percent
- Choose based on family/a partner’s advice: 78 percent
- Choose based on friend/a colleague’s advice: 77 percent
- Check their online reviews: 67 percent
- Google search: 64 percent
- Look them up on social media: 41 percent
When diners do seek out reviews, they begin with Google. In the past three months, 43 percent of survey respondents said they’ve read Google restaurant feedback, followed by 31 percent who did so on Yelp. That trend was essentially the same a year ago.
Restaurant reviews sources used in the past three months
- Google reviews: 43 percent
- Yelp: 31 percent
- Trip Advisor: 16 percent
- OpenTable: 13 percent
- A local newspaper: 12 percent
- A local blog: 8 percent
- Other: 3 percent
- None: 36 percent
A restaurant’s popularity on social media (number of followers, etc.) didn’t seem to matter much to guests. Sixty percent of diners said none of the social media platforms had any influence on where they choose to dine. Instead, recommendations from people they know and trust—like family and friends—carried more weight.
But as mentioned, social media lends heavy with millennials and Gen Z, especially Instagram, which 48 percent of Gen Zers said influenced their restaurant decisions. That was also true in 2022.
On the menu side
Customers in the survey gravitated toward locally sourced ingredients. When asked how different food choices would impact their likelihood to dine in or order off-premises, 69 percent said they’d be very or somewhat likely to choose a place that features local fare. Millennials and Gen Z were the most swayed, with 72 and 88 percent, respectively, saying they’d be very or somewhat likely to pick a spot on those criteria.
Gen Z was also highly influenced by dietary needs. Seventy-four percent said they were very or somewhat likely to visit a restaurant for its gluten-free offerings, while 65 percent felt the same about vegetarian offerings.
Diners who would be very likely/somewhat likely to choose a restaurant brand based on specific offerings
- Locally sourced ingredients: 69 percent
- Diet-specific (keto, paleo, etc.): 30 percent
- Vegetarian: 29 percent
- Gluten free: 29 percent
- Vegan: 25 percent
- Halal or Kosher: 25 percent
Price and preference
Getting deeper, there was as much to glean from what’s keeping diners out as what’s inspiring them to show up.
Nearly a third of respondents (31 percent) said if a restaurant raised prices, it would significantly impact their interest to dine there (up from 21 percent last year). Also, 41 percent said it would somewhat impact their thoughts, suggesting even those who can spend a little more are feeling less comfortable doing so, TouchBistro said. It’s another data point to illustrate consumers weathered the storm last year, understanding the high-cost dynamics. But the ceiling is here.
Diners noted similar feelings about takeout. Thirty-one percent said if a restaurant hiked prices through the channel, they’d be significantly bothered. Moreover, 43 percent noted it would somewhat dampen interest.
This data, the company said, shows that while takeout sales are up industrywide, consumers are keeping a close eye on how much they’re spending.
Menu price increase would impact visits
Gen Z
- Dine-in: 40 percent
- Takeout: 37 percent
Millennials
- Dine-in: 35 percent
- Takeout: 36 percent
Gen X
- Dine-in: 31 percent
- Takeout: 29 percent
Boomers
- Dine-in: 26 percent
- Takeout: 26 percent
Loyalty members
- Dine-in: 32 percent
- Takeout: 32 percent
Impact of menu price increases on willingness to visit
Dine-in
- Slight impact: 20 percent
- Some impact: 43 percent
- Significant impact: 31 percent
Takeout/delivery
- Slight impact: 22 percent
- Some impact: 41 percent
- Significant impact: 31 percent
Like 2022, Gen Z proved the most sensitive to price hikes, with 40 percent taking issue. That figure was only 26 percent for Boomers.
The same was true of price affecting their decision to dine off-premises—37 percent of Gen Z said price increases would dissuade them versus 26 percent for Boomers.
“These numbers aren’t surprising, given that most Gen Zs have less disposable income than older Americans,” TouchBistro said. “This group is particularly vulnerable to economic shifts, which is key for restaurateurs to remember, since Gen Zs are valuable customers who spend more at restaurants than any other age demographic.”
What’s the maximum price increases diners are willing to tolerate?
- Full-service: 11 percent
- Ordering takeout/delivery from a full-service restaurant: 10.5 percent
- Quick service: 10.4 percent
- Ordering takeout/delivery from a quick-service restaurant: 10.3 percent
Naturally, price isn’t the only detractor. Having to wait more than 25 minutes for a table was a major deterrent in the survey. The average time diners said they’d wait was 22 minutes. Yet even that pushed the limits, with 36 percent reporting they’d only wait 15 minutes for a table.
Boomers were the tightest—43 percent said they’d only wait a maximum of 15 minutes. Gen Z was more willing to stick around. Thirty-three percent would wait up to 45 minutes.
Maximum amount of time diners would wait for a table, on average
- 16–30 minutes: 45 percent
- Less than 15 minutes: 36 percent
- 31–45 minutes: 13 percent
- 46–60 minutes: 3 percent
- More than 60 minutes: 2 percent
The numbers weren’t all that dissimilar for off-premises occasions. The overall average expanded to 30 minutes before somebody would decide to cancel. More than 20 percent cut the line at 15 minutes. Boomers, again, were less patient, with 28 percent sticking to 15 minutes. Sixteen percent of millennials would wait up to an hour. “For restaurants with an older clientele,” TouchBistro said, “it’s clear that getting delivery orders out the door quickly should be a top priority.”
Maximum amount of time diners would wait for delivery before canceling it, on average
- 16–30 minutes: 38 percent
- Less than 15 minutes: 21 percent
- 31–45 minutes: 24 percent
- 46–60 minutes: 12 percent
- More than 60 minutes: 4 percent
As for other setbacks, a health inspection warning topped the list at 68 percent. Additionally, 63 percent of diners said they’d be deterred by negative feedback from friends (word of mouth still reigns).
Those figures were more striking among younger diners: 64 percent of Gen Zers said they’d avoid a restaurant because of a health inspection warning and 63 percent would be bothered by bad online reviews. For millennials, the numbers were 60 and 57 percent, respectively.
“The lesson for restaurateurs?” the company said. “Cleanliness and positive feedback (online and by word of mouth) are both critical to maintain in order to keep diners coming in.”
Restaurant visit deterrents
- A recent health inspection warnings: 68 percent
- Negative feedback from friends: 63 percent (up from 57 percent in 2022)
- Bad online reviews: 56 percent
- A table wait time over 30 minutes: 54 percent
- A distance greater than 30 miles away: 53 percent
- Auto-gratuity: 33 percent
- No bill splitting: 11 percent
Outside the four walls, there’s growing frustrating with inaccuracy (42 percent) labeled it the biggest takeout/delivery frustration, which makes sense since you’re likely not going to send it back. For 20 percent of diners, food being cold was also a recurring frustration.
Top frustrations when ordering takeout/delivery
- Order is inaccurate: 42 percent
- Food is cold: 20 percent
- Order is not ready upon arrival: 12 percent
- Lack of dedicated pickup areas or line: 4 percent
- Inability to schedule the order in advance: 3 percent
- Other: 2 percent
- None: 16 percent
The next article in the series will explore the growing role of loyalty.
