The Evolution of Dining in the Digital Age

Diners Love a Good Deal High Earners Use Online or Mobile Deals Most In the past 3 months, have you used an online or mobile coupon at a restaurant? 50% 9 Out of 10 Diners Have Looked for a Restaurant Deal at Least Once 46% 40% 30% 20% 23% 18% 20% 14% 16% Guest Check 10% $150,000+ $100,000- $75,000- $50,000- $25,000- $0- How often do you look for deals when you go $149,000 $99,999 $74,999 $49,999 $24,999 to a restaurant? 13% Age and Location Every time I dine out Matter, Too 30% Most of the time Among people in urban 38% areas, those aged 45–54 said “yes,” they have used Sometimes a deal found online or their 14% smartphone – more than any other group. Rarely 5% However, in suburban Never areas, millennials (aged 25–34) use deals found Nearly 1 in 3 consumers have used online or their smartphone a digital coupon at a restaurant in the the most. last 3 months or plan to in the future. How do you search for restaurant deals? Deal-Seeking Drives 27% New Experiences Search engine 24% 8 out of 10 are Through a restaurant’s app or website 80% likely to try a new restaurant if it is 22% offering a deal. Through a general deals app or website 15% Newspaper 12% West Coasters are the most Other (e.g. OpenTable, Yelp, UrbanSpoon) adventurous, 84% with 84% saying they would try a new restaurant. ©2016 RetailMeNot, Inc.

Mobile Makes Its Way to the Food and Dining Scene 1 in 4 consumers currently have at least one restaurant-specific mobile app on their smartphone. Among people who dine out 8 to 10 times a week, more than two-thirds use a restaurant-specific mobile app. However, more than half of consumers still hear about new restaurants from friends or by word of mouth. % 58 32% 25% 15% 13% 12% Friends / Driving by Advertisement Online article Food & Newspaper Word of mouth Dining app (e.g. Yelp, OpenTable, etc.) Diners Feel Comfortable …but Are Less Inclined Using Their Phone to to Do So While Dining Search Beforehand… Which of the following have you done on your smartphone while dining in a restaurant? Which of the following have you done on your (Select all) smartphone? (Select all) 53% 49% 37% 32% Found a Browsed None of Took a photo restaurant a menu the above location 8% 19% 21% 37% Paid for a Checked-in None of Researched meal via on social media the above new restaurants mobile 16% 25% Looked up 19% Made reservations 35% nutritional info 17% Searched for for dining online deals Placed an order for Browsed reviews pick-up or delivery of the restaurant Consumers aged 25–34 are more likely to research new restaurants on their smartphone than any other age group (60%). ©2016 RetailMeNot, Inc.

9 Out of 10 Diners Have Looked for a Restaurant Deal at Least Once 8 out of 10 are likely to try a new restaurant if it is offering a deal. Among people in urban areas, those aged 45–54 said “yes,” they have used a deal found online or their smartphone – more than any other group. Diners Love a Good Deal High Earners Use Online or Mobile Deals Most Age and Location Matter, Too Deal-Seeking Drives New Experiences However, in suburban areas, millennials (aged 25–34) use deals found online or their smartphone the most. West Coasters are the most adventurous, with 84% saying they would try a new restaurant. 8 4% Guest Check How often do you look for deals when you go to a restaurant? 13% 30% 38% 14% 5% Every time I dine out Most of the time Sometimes Rarely Never How do you search for restaurant deals? 27% 24% 22% 15% 12% Search engine Through a restaurant’s app or website Through a general deals app or website Newspaper Other (e.g. OpenTable, Yelp, UrbanSpoon) Nearly 1 in 3 consumers have used a digital coupon at a restaurant in the last 3 months or plan to in the future. 80% In the past 3 months, have you used an online or mobile coupon at a restaurant? 46% $150,000+ 23% $100,000- $149,000 20% $0- $24,999 18% $50,000- $74,999 16% $25,000- $49,999 14% $75,000- $99,999 10% 20% 30% 40% 50% ©2016 RetailMeNot, Inc.

Additional Food for Thought Summer Is the Season to Dine Out. When do you dine out most often? 48% 26% 15% 11% SUMMER WINTER SPRING FALL Consumers Trust the Parents are more likely to Quality of Food Most At: prefer eating at national chain restaurants versus non-parents. 42% 26% Independent Local chains restaurants 17% 14% 25% 16% National chains None of Parents Non-parents the above Young millennials (aged 18–34) are the most likely (45%) to take advantage of restaurant 45% delivery services like Seamless, Postmates, Favor, UberEats and more. ©2016 RetailMeNot, Inc.

What Can Restaurants Do to Dial-In to These Consumers? Let the diner drive the experience. The best apps always start with the customer and, often, solve a need for them that goes beyond just purchasing products—this is no different for food and dining brands. Create something online or on your mobile app that adds value to your customers’ day and to their experience with your restaurant. Don’t create an app that just mimics your desktop website. Think about ways it can go above and beyond to help your consumers and design with mobile-first in mind. Don’t just stop there, though. Take the insights you have from your audience and turn them into action. Every good marketing department knows they must start by outlining their campaign goals. Is your goal to attract new customers, existing customers or both? Is your online experience meant to entertain customers and build brand awareness, or are you trying to create more loyalty and transactions? Be laser focused, especially when starting out, and make sure you track the key metrics to your success. ©2016 RetailMeNot, Inc.

Expand your ecosystem. In order to get in front of more potential customers, think about how your brand can partner in new ways with other companies that already have a large mobile reach, in order to get in front of more potential customers. According to a commissioned study conducted by Forrester Consulting on behalf of RetailMeNot, most consumers (60%) have two or fewer retail apps downloaded.¹ This makes it more important than ever to partner. By tapping into partner networks and apps, you not only expand your reach, but you also gain more access to shared shared data. In turn, the customer’s experience with your content will feel natural, not forced. Partnering is also a good solution for brands that want to increase their mobile presence but don’t have the resources or audience built to sustain their own app. 1. “The State of Mobile Apps for Retailers,” a commissioned study ©2016 RetailMeNot, Inc. conducted by Forrester Consulting onbehalf of RetailMeNot, July 2015.

Make it personal. How can you make the experience one that is unique for your consumer? Brands can utilize consumer spending habits, app interactions and order history to begin to make recommendations specific to their needs. What time of day do they frequent your restaurant? What are their favorite menu items to regularly order? Which deals push them in your restaurant when they are nearby? In today’s digital marketplace, data is abundant. Marketers need more than just data, though, they need insights curated from this data in order to build a more one-to-one customer experience. For example, allowing diners to opt in to location services or leave menu reviews allows you to send them personalized content and deals based on their preferences when they are near a specific location. Additionally, partners like RetailMeNot can help food and dining brands dive deeper into the data behind their promotions in order to make them more strategic and impactful. ©2016 RetailMeNot, Inc.