In the wake of the pandemic's impact on the restaurant industry, the evolving dynamics of the foodservice landscape have taken a new turn. Although foot traffic has returned, economic challenges persist, prompting restaurants to adapt to changing consumer behaviors. A significant shift is evident in the rise of off-premise channels, as the demand for delivery services soared during the pandemic. However, with economic uncertainty and cost-conscious consumers, the focus is now shifting towards enhancing the pickup experience, driving innovation in drive-thru services and loyalty programs.
The Rise of Pickup Lanes:
According to international restaurant and food critics Baum + Whiteman, budget-conscious consumers are steering fast-casual and fast-food chains towards reconfiguring their operations. The goal is to encourage a shift from costly delivery services to more economical pickup options, often saving customers substantial amounts, ranging from 30% to 50%. Chains like Taco Bell and KFC are leading the charge by introducing multilane pickup options for online orders. Chipotle has taken it a step further by creating pickup-only stores, streamlining the process to a mere 30 seconds at digital order-only lanes.
Drive-Thru Innovations Beyond Fast Food:
The drive-thru experience is not limited to traditional fast-food chains. Coborn's grocery store chain is breaking new ground by integrating Erbert & Gerbert's sandwich shop into its Big Lake, Minnesota location, complete with a dedicated pickup lane. In West St. Paul, Minnesota, Coborn's has even opened a drive-thru-equipped supermarket store, aligning with the growing consumer preference for drive-thrus in supermarkets, as indicated by last year's Power of Foodservice at Retail report from the Food Industry Association.
Next-Gen Loyalty Programs:
While drive-thru enhancements aim to boost convenience and reduce delivery fees, building and maintaining customer loyalty remains a crucial aspect for foodservice operations. Restaurants are now exploring next-gen loyalty programs that leverage technology to collect extensive data about customer preferences and behavior. Nation's Restaurant News reports that this data allows operators to tailor loyalty programs uniquely to their customers, creating more personalized experiences that foster higher levels of engagement.
Snooze, an A.M. Eatery, stands out as an example with its multitiered loyalty program. Customers earn 100 "jacks" for every dollar spent and progress through bronze, silver, and gold tiers, unlocking better perks with each level. The program, introduced last April, has proven successful, generating $6 million in loyalty transactions within its first year.
As the restaurant industry continues to navigate the challenges post-pandemic, the emphasis on pickup services and innovative drive-thru experiences is reshaping the way consumers interact with their favorite eateries. The integration of loyalty programs adds another layer, ensuring that customers not only find convenience in the drive-thru but also build lasting connections with their preferred brands. The future of the restaurant industry lies in its ability to adapt, innovate, and cater to the evolving needs and preferences of its patrons.