Hospitality Insight

Despite the benefits of online food ordering, few restaurants are taking advantage. According to the report Online, Mobile, and Text Food Ordering in the U.S. Restaurant Industry, restaurants are taking a cautious approach to online food ordering. Consumers, on the other hand, appear ready to embrace online ordering. A recent survey of 277 respondents found that 187 (67%) said they have ordered food online; nearly half prefer to order takeout online. The most common foods respondents had ordered online: Pizza (88%), Asian food (32%), Chicken Concepts (32%), and Mexican (28%).

The report, published by Cornell’s Center for Hospitality Research (CHR), concluded that order accuracy and productivity also increases with online ordering. With the online order comes a paper trail that allows the order taker and kitchen to get the order right. Online orders are also usually taken in advance, particularly with group and catering order.

CHR cited a Technomic survey of 1,000 adults. Of the 18-34 year-olds, 59 percent who used electronic ordering indicated it was easier than speaking to a live person. In this same key consumer target, 42 percent said their order fulfillment was more accurate and 59 percent indicated it was faster. Interestingly, Technomic’s report also found that a significant portion of respondents felt less “rushed” using electronic ordering.

McDonald’s is by far the top chain restaurant in the U.S., according to the 2011 Technomic Top 500 Chain Restaurant Report. The limited-service segment grew sales 1.9% and was responsible for the net increase in total restaurant industry sales. McDonald’s, representing 9% of the entire industry’s take, saw U.S. sales increase 4.4% to $32.4 billion. Subway experienced another exceptional year of growth, reaching $10.6 billion in U.S. system wide sales, an increase of 6%. Starbucks, now the third largest restaurant chain in the U.S., recovered from a year when it closed hundreds of underperforming stores in 2009, achieving a U.S. system wide sales increase of 8.7% in 2010.

The Top 500 U.S. restaurant chains, which represent nearly two-thirds of the U.S. restaurant industry’s total sales, increased sales 1.8% to $234 billion in 2010, a turnaround from the 0.8% aggregate sales decline experienced in the prior year. Limited-service chains within the Top 500 ranking grew sales 2.6% overall, whereas full-service chains’ sales remained flat compared to 2009.

The Technomic Top 500 Chain Restaurant Report is available to the Cornell community from the Nestlé Library website. From the Technomic home page, click the Current Release tab under the Publications section.

After years of struggling in a negative business environment, restaurant technology spending is back, according to the 2011 Restaurant Technology Study published by Hospitality Technology.

The annual publication (in its 13th year) tracks information technology trends within the restaurant industry. This year’s study covers crucial areas such as IT spending by technology type, direction of change in business metrics, point-of-sale systems, and more.

A copy of the 2011 Restaurant Technology Study can be found on the reference shelf in the library (call number TX945 A57).

The Nestlé Library has received the 2011 copy of the Restaurant Industry Forecast from the National Restaurant Association. The 42nd annual publication provides research and insights based on analysis of the latest economic data, as well as extensive surveys or restaurateurs and consumers.

This year’s report sections include: Inside the Mind of Today’s Consumer, Sales Outlook, Workforce Outlook,  and Food & Menu Trends.

The 2011 Restaurant Industry Forecast can be found on the library’s reference shelves (call number TX943 N38).

The annual National Restaurant Association survey of American Culinary Federation member chefs is a comprehensive culinary forecast and menu trends prediction report. More than 1,800 professional chefs ranked nearly 215 culinary items as a “hot trend,” “yesterday’s news,” or “perennial favorite” on restaurant menus in 2010. The following received the most votes in the Top Trends category:

1. Locally grown produce
2. Locally sourced meats and produce
3. Sustainability
4. Bite-size/mini desserts
5. Locally produced wine and beer
6. Nutritonally balanced children’s dishes
7. Smaller portions for a reduced price
8. Farm/estate-branded ingredients
9. Gluten-free/food allergy conscious
10. Sustainable seafood

View the full survey from the National Restaurant Association (PDF file).

Restaurants are still trying  to find ways to take advantage of the rising popularity of social networking. A recent article in Restaurants & Institutions offers nine ways that restaurants can take advantage of social media.

Examples include using social media to: find employees, get feedback on new menu items, create a dialogue with customers, and more. The article provides examples of restaurants using social media tools such as Twitter and Facebook.

Read the full article from the Restaurants & Institutions web site. Cornell students can find current, and older, editions of Restaurants & Institutions on the periodical shelves in the Nestlé library.