Restaurant And Hospitality News – January 19, 2016
By Christine Kern, contributing writer
In news this week, a new study shows travelers need their smartphones above all else; Chili’s is upping its online ordering platform game; and while 2015 saw positive growth for restaurants, the year ended on a slow note for same-store sales.
Study Shows Travelers’ Smartphones Are Their Most Important Travel Companion
Travelers are most connected to their smartphones, and report that the devices are their most important travel companion, according to results from the Expedia/Egencia Mobile Index, a global study of mobile-device-related behavior and preferences among travelers conducted online across North America, Europe, South America and Asia Pacific. The study, commissioned by Expedia and conducted by Northstar, polled 9,642 travelers across 19 countries.
“We have found that travelers are using mobile devices at every stage of the travel process, from researching and booking trips to capturing and sharing the travel experience,” said Aman Bhutani, president for Brand Expedia Group. “And just because a traveler can use their device to read work email and stay connected to the office, they also believe it improves the quality of their vacations. Consumers tell us what they do and don’t like in their mobile offerings and habits, and we’ve been listening and steadily adapting to provide what the mobile-savvy travelers demand.”
While travelers report that their smartphones are indispensable, 60 percent also said that their reliance on mobile causes them to feel that they are never truly “unplugged.” In fact, 84 percent of global travelers want to be able to access information anytime, anyplace, and more than half report that they would be “lost” without a mobile device, even on vacation. In fact, 35 percent said they use their mobile devices more on vacation than they do at home.
“Mobile devices may be a requirement for business trips, however, business travel and connectivity is changing. Various devices allow for a seamless experience with apps that enable users to be more productive and efficient, which travelers are utilizing in order to prioritize work-life balance and disconnect when possible.” said Rob Greyber, president of Egencia.
Chili’s Plans Enhancement of Online Ordering
Chili’s® Grill & Bar has announced that it will be investing in its online ordering system to support future growth of its to-go business and provide an improved digital experience for guests using smartphones, tablets, or PCs to order online. As part of this investment, Chili’s is partnering with Olo, the leading digital ordering provider, to power its online ordering platform and create an infrastructure to support future capabilities. The new online ordering platform will be implemented by Summer 2016, with fast and secure digital ordering that integrates seamlessly with Chili’s current systems. The platform will also allow the 4.3 members of Chili’s loyalty program, My Chili’s Rewards, the flexibility of ordering online and paying for to-go orders with loyalty points.
“To-go ordering is the fastest growing part of our business,” explained Wade Allen, vice president of digital innovation and customer engagement for Chili’s Grill & Bar in a statement. “This investment in technology for online ordering is a clear opportunity for further growth and lays a foundation for us to add new features that will continue to deliver a digital guest experience like no other in the casual dining industry.”
The move is part of a company strategy to differentiate the brand through technology, according to the Nation’s Restaurant News. Wyman Roberts, parent company Brinker president and CEO, stated that the company’s commitment to leverage technology is part of an overall strategy to compete “in the marketplace more specifically and more differentiated than we have in the past. We think that our ability to leverage our scale and our size and our innovation around technology really will continue to differentiate us.”
Same-Store Restaurant Growth Slows At Year’s End
While 2015 saw better sales figures than 2014 for the restaurant industry, same-store sales growth continued to decelerate during the fourth quarter, according to a report by The Nation’s Restaurant News. Data from TDn2K’s Black ox Intelligence through The Restaurant Industry Snapshot found that same-store sales rose 1.6 percent in 2015, up 1 percent from 2014 figures, and up 2.3 percent over 2013 results. The Snapshot is based on weekly sales from more than 23,000 restaurant units and more than 120 brands, representing $57 billion dollars in annual revenue. The year ended on a low note, however, with same-store sales increasing just 0.4 percent during Q4, representing a 1.2-percent decline from the third quarter, and also constituting the lowest quarterly same-store sales growth since Q3 2014.
“Although the industry has now experienced six consecutive quarters of positive same-store sales growth, it is important to mention that every quarter since Q1, we have seen lower sales growth rates than during the preceding quarter,” said Victor Fernandez, executive director of insights and knowledge for TDn2K. “What is most concerning when analyzing this persistent slowdown in sales is that the 1.2-percent drop in year-over-year same-store sales growth experienced during Q4 compared with the previous quarter is the largest decline experienced by the industry in over two years.” Among the challenges that continue to plague restaurateurs are employee turnover and consumer spending trends, which are poised to increase during 2016.