Sales Through Digital Ordering Platforms More Than Triple Since Pandemic Onset
Most digital sales came from customers who were new to the brand, according to Paytronix report.
NEWTON, Mass. — Since the onset of the COVID-19 pandemic, sales generated through digital ordering platforms have more than tripled, according to Paytronix Systems Inc.'s Paytronix Annual Order & Delivery Report: 2021.
Additionally, most of those sales came from people who had never previously interacted with the brand.
The annual Paytronix report examines industry trends across the digital ordering landscape, from enterprise brands to independent restaurants, in sales, guest experience and retention, and fulfillment method.
Key insights include:
Sales generated through digital ordering platforms grew more than three times than after the onset of the pandemic.
A significant portion of the customers responsible for this increase in online ordering were entirely new to the brand, having never ordered online or in-store before.
Many of the brands that weathered the pandemic well benefitted from the closure of what the National Restaurant Association estimates was 110,000 eating and drinking establishments. These closures presented the surviving brands with the opportunity to acquire new guests.
Customers who place orders for delivery spend, on average, 10 percent more than customers who place orders for takeout, even before factoring in taxes or delivery fees.
Brand value means more than food quality. Those who rated their food at 1 star were 27 percent likely to return, while those who gave the restaurant's value 1 star were only 20 percent likely to return.
"What we're seeing in the online ordering and delivery market is a complete change in how guests interact with their brands. In fact, the pandemic presented brands with an opportunity build stronger guest engagement and then continue by providing a great guest experience," said Paytronix CEO Andrew Robbins. "The brands that will succeed in the future are those who can bridge the gap between off-premises order and delivery, and on-premises dining. Those brands will understand how to offer a great brand experience, no matter how the guest chooses to interact."
The report examines these and other macro trends in the 2020 online ordering landscape, including online sales, tips, reviews, and fulfillment (takeout or delivery). All data referenced in the report is sourced from the Paytronix database of in-store and online transactions that occurred between Jan. 1, 2019 and Dec. 31, 2020, unless otherwise noted. It is available for download here.
Newton-based Paytronix provides software as a service customer experience management solutions for restaurants and convenience stores.