TORONTO (November 21, 2023) – Snappy, Canada’s most innovative all-in-one restaurant technology partner, today released their foodservice industry findings for 2023 with the aim of better preparing restaurant owners to thrive in today’s market. Between rising costs, changing consumer expectations, and the need for operational efficiency, Canada’s foodservice industry faces several dynamic challenges; however, data shows great opportunity to connect with consumers in new ways moving forward.
Snappy’s 2023 foodservice industry statistics are derived from collected customer use metrics from thousands of restaurants across Canada—including a variety of restaurant types—in order to capture a clear picture of consumer dining behaviours.
“In an ever-changing economic landscape, the restaurant industry faces a multitude of challenges,” says Ricky Wang, CEO of Snappy. “The ability to adapt to changing consumer preferences, efficiently manage operations, and implement strategies to thrive in the face of inflation is paramount to finding success as a restaurant owner. As a restaurant technology partner, our tools are designed to empower each restaurant by helping them better understand their own metrics, as well as the industry as a whole.”
Key findings from Snappy’s 2023 review include:
Increased Consumer Spending: The average check amount has risen by 18% year over year (YOY), demonstrating the resilience of the restaurant industry in the face of economic uncertainties.
Loyal Customers Support Despite Costs: Consumers are willing to invest more in their dining experiences, understanding the challenges restaurants face due to inflation and rising costs. 88% of consumers express their understanding if their favorite local establishment raises prices, with 55% willing to tolerate a 1–10% price increase.
Not All Restaurants Are Equal: Quick service restaurants have seen an increase of 12%, while fine dining establishments have experienced a 24% rise in average check amounts YOY.
Efficient Wait Times: Restaurants have honed their skills in managing wait times, with an average decrease of 7% YOY. This indicates that they are becoming increasingly adept at providing a seamless dining experience. Customers, on the other hand, are still willing to wait, with the longest acceptable wait time averaging 10 minutes.
Margin Management Amid Inflation: The industry's average profit margins have experienced a slight decrease of 5% YOY due to the impact of inflation. However, this decline is offset by the increase in consumer spending, showcasing the resilience of restaurants in adapting to economic challenges.
Embracing Self-Serve Kiosks: Restaurants have witnessed a shift in consumer preferences, with 22% of customers opting for self-service methods over traditional ordering through a person. This indicates a growing preference for convenience and efficiency. Demographically, it's noteworthy that Gen Z is 31% more likely than Millennials to use self-serve kiosks to avoid interactions.
Loyalty Programs and Discounts: As inflation continues its upward trend, there has been an average increase of 23% YOY in customers signing up for loyalty programs or discounts. This underscores the importance of value and cost-saving measures for consumers during economically challenging times.
Discount Codes Driving Purchases: Data reveals that the volume of consumer purchasing at restaurants has seen fluctuations throughout the year; however, months where restaurants are offering a higher discount option have shown increased utilization, suggesting that the percentage of the discount indeed matters and can influence customer behaviour.
“As the industry continues to evolve, Snappy remains committed to helping restaurants succeed in these challenging times,” continues Wang. “This data from our comprehensive POS software will help restaurateurs curate what the dining experience will look like in 2024. Our technology has become an invaluable asset to the restaurant industry, catering to the evolving needs of merchants and consumers alike.”
For more information, visit gosnappy.io.
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