CHERRY HILL, N.J., Jan. 4, 2022 /PRNewswire/ -- The pandemic has
permanently altered the consumer-restaurant relationship with
operators investing in technology and real estate to align with
changing consumer preferences, according to the 2021 Restaurant
Franchise Pulse survey, conducted by TD Bank, America's Most
Convenient Bank®.
Early in the pandemic, 72% of operators invested in delivery and
mobile/online ordering to boost revenue during mandated
stay-at-home orders according to TD's 2020 survey, and it appears
the popularity of these offerings is here to stay.
Investment in delivery and mobile ordering pays off
According to this year's survey, restaurant operators' early
investment in delivery and mobile ordering has paid off in a big
way.
- 71% rely on delivery for 11% or more of sales
- 33% rely on delivery for more than 20% of sales
- 65% rely on mobile ordering for 11% or more of sales
- 25% rely on mobile ordering for more than 20% of sales
To keep up with changing consumer preferences, operators noted
that their top areas of investment in 2022 include mobile ordering
(54%); delivery services (47%); technology such as new POS digital
signage or other in-store tech (45%); and alternative payment
methods (37%).
"Consumers have become accustomed to the speed and convenience
of mobile ordering and delivery, which in turn, has changed the
restaurant franchise landscape," said Mark
Wasilefsky, Head of Restaurant Franchise Finance Group, TD
Bank. "Even once there is no longer the active threat of the
pandemic, consumers will still turn to these mediums. Mobile
ordering and delivery have become a part of everyday life and are
no longer nice to have, but expected, and operators need to
continue to enhance these offerings to keep up with
competitors."
Restaurant real estate changes to align with consumer
preference
Along with furthering their technological investments, operators
are also altering their physical restaurant locations to cater to
delivery. While only 15% plan to reduce the number or size of their
franchise locations, operators are making other adjustments to
their real estate.
- 55% plan to add more space for pick-up
- 45% plan to provide additional drive thru locations
- 43% plan to add an outdoor on-site dining space
"What we are seeing is that the pandemic has permanently altered
consumer expectations and behaviors to the point that operators are
comfortable enough to make long-term capital investments,"
Wasilefsky added.
Operator optimism and investment fuels future credit
needs
Despite the challenges the restaurant industry has faced since
the start of the pandemic, operators have learned to pivot and as a
result, 81% of respondents feel optimistic about the future. More
than half even feel very optimistic and 47% believe their revenue
will increase significantly. This optimism and operators' planned
investment lead to strong credit needs. In fact, 61% of respondents
plan to apply for a loan or line of credit within the next
year.
Survey Methodology
This study was conducted among a representative group of 251
restaurant franchise owners and operators across the United States from November 10-22, 2021. The survey was hosted by
global research company ENGINE INSIGHTS.
About TD Bank, America's Most Convenient
Bank®
TD Bank, America's Most Convenient Bank, is one of the 10
largest banks in the U.S., providing more than 9.7 million
customers with a full range of retail, small business and
commercial banking products and services at more than 1,100
convenient locations throughout the Northeast, Mid-Atlantic, Metro
D.C., the Carolinas and Florida.
In addition, TD Bank and its subsidiaries offer customized private
banking and wealth management services through TD
Wealth®, and vehicle financing and dealer commercial
services through TD Auto Finance. TD Bank is headquartered in
Cherry Hill, N.J. To learn more,
visit www.td.com/us. Find TD Bank on Facebook
at www.facebook.com/TDBank and on Twitter
at www.twitter.com/TDBank_US and www.twitter.com/TDNews_US.
TD Bank, America's Most Convenient Bank, is a member of
TD Bank Group and a subsidiary of The Toronto-Dominion Bank of
Toronto, Canada, a top 10
financial services company in North
America. The Toronto-Dominion Bank trades on the
New York and Toronto stock exchanges under the ticker
symbol "TD". To learn more, visit www.td.com/us.
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SOURCE TD Bank