The Human Connection Lives On in the Restaurant Experience

Editor’s note: This is part two in a series about the state of the restaurant consumer. Part one can be found here.

In the last article, much of the focus centered on dine-in and what’s driving guests into restaurants, higher costs or not. But let’s focus outside the four walls and the impact tech is making on the circular experience.

In TouchBistro’s survey, pickup and drive-thru were the preferred methods. While third-party delivery apps might be convenient, diners have mixed feelings, as always. That’s a combination of price and trying to find a specific restaurant. The data showed when guests know what they want to order, it’s faster and more accurate to call a location directly. People also found third-party apps took longer to confirm orders and deliver food because someone needs to accept the order pickup first. It’s a sentiment reflected across nearly all age groups.

Nearly a third of respondents (30 percent) said they prefer to go into a restaurant to pick up their takeout orders. Drive-thru ranked a close second at 26 percent. Those figures were essentially unchanged from the prior year. Gen Xers were the most frequent drive-thru users (34 percent), while Gen Z was partial to delivery (46 percent).

In terms of placing takeout orders, Boomers (38 percent) opted to call in. Younger cohorts and loyalty program members gravitated toward white-label apps, like McDonald’s or Starbucks’ respective platforms. Twenty-three percent of millennials and 23 percent of Gen Zers, as well as 27 percent of loyalty program members, said they prefer this approach.

Preferred takeout method

Pickup: 30 percent
Drive-thru: 26 percent
Delivery: 24 percent (46 percent for Gen Z)
Walk-In: 19 percent

How diners usually place a to-go order

Order over the phone: 29 percent
Directly through a restaurant’s website: 24 percent
Through the restaurant’s own app: 19 percent
Though a third-party app: 13 percent
Other: 11 percent
Through the restaurant’s Google listing: 2 percent
Through a discovery app: 2 percent

As for the third-party apps themselves, DoorDash was the favorite. The aggregator has risen significantly in popularity through TouchBistro’s yearly surveys. It was 68 percent in 2022 and 79 percent in 2023. Uber Eat also earned high marks, with 60 percent saying they use the network. Uber Eat was less present with Gen X diners (38 percent) and Boomers (35 percent).

Getting deeper into tech

AI, understandably, collects much industry buzz these days. That’s as much an indicator of its potential as a sign operators aren’t sure where to deploy it yet. The same is materially true of consumers. When asked which innovations they’d most like to see at restaurants, 23 percent picked the option to pre-schedule pickup and delivery orders. Only 2 percent wanted AI-generated order recommendations, “which signals that restaurants should proceed with caution when incorporating AI into their customer experience,” TouchBistro said, “as the human element is still a major draw.”

What’s worth noting about that point is disruption doesn’t turn like a switch. Consumers often don’t realize what they’re willing to embrace until they know what it is, or whether or not what they’re being promised is a better alternative to “the old ways.” That isn’t to say AI should be approached with open arms in the guest experience today; it’s only to note there’s generally a level-set of expectations needed before consumers buy in.

For now, though, Gen Z diners appear the most open to AI recommendations. Overall, the number was just 8 percent.

Diners were hardly against tech, broadly speaking. Those who saw the value of QR code ordering systems said they believe it enhances the experience by offering the ability to include pictures for every menu item. Additionally, 15 percent of millennial diners said they want to see restaurants add self-serve kiosks and 14 percent of Gen Zers were eager for restaurants to try text-to-order options—two figures that suggest younger consumers are increasingly open to customer-facing restaurant tech, TouchBistro said.

Most desired takeout innovations

Option to pre-schedule pickup/delivery orders

2023: 23 percent
2022: 22 percent

Dedicated drive-thru for mobile orders

2023: 22 percent
2022: 21 percent

Saved order history/favorite orders

2023: 15 percent
2022: 17 percent

Self-serve kiosks

2023: 12 percent
2022: 14 percent

Ability to text to order

2023: 11 percent
2022: 11 percent

AI-generated order recommendations

2023: 2 percent
2022: N/A percent

Other

2023: 10 percent
2022: 9 percent

A comment from a 37-year-old: “Tech should always be easy to use because if I have any questions or there are any issues, then it overrides all of that convenience.”

Back into the dining room (with tech)

One of the pulsing trends to emerge in TouchBistro’s report this year, especially measured against last year’s, was diners’ overwhelming desire to order from physical menus and speak to “real servers” when they got to a restaurant. It flashed at 85 percent.

“This shows just how critical the human element is to the dining experience and how important customer service still is to a restaurant’s success,” TouchBistro said.

Only 4 percent of respondents said they preferred contactless QR code menus. Even with Gen Z, QR code ordering was preferred by 15 percent.

Customers said they prioritize a more traditional, server-led payment experience as well (50 percent for a server to take payment and process it away from the table). Seventeen percent favorited QR code payments.

Thirty-three percent said they prefer when a server brings a handheld payment terminal to the table.

Preferred method of placing an order

Viewing a physical menu and speaking directly with a server: 85 percent (98 percent for Boomers)
Through an iPad or tablet at the tables: 6 percent
Through a self-serve kiosk: 4 percent
Through a QR code: 4 percent
Other: 1 percent

Reservation trends varied in the survey. Most preferred to save them for special occasions, like holidays. Widely, 27 percent said they occasionally make one when dining out; 36 percent rarely do; and 27 percent never try. However, reservations were popular among younger diners. For Gen Z and millennials customers, 59 and 33 percent, respectively, said they occasionally make reservations.

TouchBistro said these findings ultimately point dining-in being a spontaneous activity for older guests—one that can be accommodated by accepting walk-ins. Younger diners, on the other hand, are best served by having the option to book.

At least for now, phone was the primary tool. Respondents said they’d use third-party reservation apps if a restaurant’s website redirected them to do so, but most (63 percent) felt more confident things would go smoothly if they could speak to somebody over the phone.

Nearly half (48 percent) also preferred using a restaurant’s direct website. Thirty-three percent said they use platforms like OpenTable. This was a lift from last year (25 percent). So, perhaps, diner habits are starting to (slowly) shift away from the phone.

But in the meantime, it’s not just an older generation reaction. Sixty-four percent of Gen Z and 57 percent of millennials said they use phones (call in) to make reservations. Among those who prefer the method, they said they value the ability to ask staff questions while doing so.

Channels used to make reservations

Phone (call in)