The Future of Dining: Off‑Premise Takes the Lead

In recent years, the dining landscape has undergone a significant transformation: specifically, the rise in popularity of off-premise dining options such as takeout and delivery. Driven by the increasing demand for convenience, particularly among younger generations, this shift is not just a passing trend. Instead, it is poised to redefine the restaurant industry.

The proliferation and success of takeout and delivery in a post-Covid world highlights consumers' growing desire for convenience in all aspects of their lives. According to new research,* nearly half of all diners prefer takeout or delivery, with 59% of Gen Z consumers favoring these options. In contrast, 62% of Baby Boomers prefer to dine at a restaurant’s physical location. This generational divide underscores the need for restaurants to adapt to changing consumer preferences.

Statistics also reveal that dining in and takeout/delivery are two separate businesses, and diners appreciate the strengths of each: 48% of diners prefer takeout or delivery because it’s faster than dining in, while 60% prefer dining on-premise because the food tastes better when served fresh. However, the convenience of takeout and delivery comes at a cost, and customers are divided on whether it’s worth it. While 28% believe the convenience justifies the cost of delivery, only 19% think paying extra for priority delivery is worth it.

What This Means for the Future of Takeout and Delivery

The shift towards off-premise dining is not just about convenience; it is set to become the primary channel for restaurants. As digital ordering becomes more prevalent, restaurants must ensure their digital menus and ordering processes are seamless and user-friendly. Some restaurant apps and websites offer fragmented experiences such as incongruencies in branding, ordering flows, and methods of signing up for loyalty, which can confuse diners. Small improvements in the digital ordering process that make it easier for customers to place orders and enhance the overall guest experience can give restaurants a significant edge.

While on-premise dining will continue to focus on providing experiential and celebratory moments, off-premise dining will thrive on convenience and speed. As life gets busier and more people opt for takeout and delivery, restaurants need to excel in both areas.

Opportunities for Restaurants

One of the key opportunities for restaurants is to leverage the upsell to justify delivery expenses, much like Amazon teases shoppers with “just add a few more items and qualify for same-day delivery” messaging.

For instance, 31% of Gen Z and Millennial diners order extra food to justify delivery costs. Restaurants can use their checkout pages to offer targeted upselling strategies and buy one, get one free (BOGO) offers.

Enhancing digital experiences is another pivotal focus area. Full-service restaurants are leveraging websites and apps to simplify menu browsing and enhance payment convenience. Meanwhile, quick-service restaurants (QSRs) are prioritizing ways to speed up reordering processes and engage customers with loyalty programs, given their higher visit frequency. By creating a seamless and intuitive digital experience, restaurants can attract and retain more customers, while gaining important consumer insights.

The demand for off-premise dining is growing swiftly and shows no signs of slowing down. To stay ahead, restaurants must be proactive by using data-driven insights to inform their strategies and embracing innovative technologies. By optimizing online ordering and mobile app platforms and making the most of first-party data, restaurants can meet this increasing demand, build strong customer loyalty, and continue to gain share of stomach.

How Bounteous x Accolite Can Help

At Bounteous x Accolite, we understand the importance of adapting to the changing dining landscape. Whether through apps or websites, our expertise in digital transformation can help restaurants create seamless and intuitive digital experiences. 

Leveraging solutions like our proprietary digital accelerator, NomNom, restaurants can enhance their off-premise offerings while still providing exceptional on-premise experiences. For example, the machine learning-powered NomNom Recommendation Engine unleashes the power of focused AI on product recommendations, turning your customer data into a powerful recommendation engine to increase sales and improve conversion.

As the dining industry continues to evolve, it's critical for restaurants to stay ahead of the curve. Whether you want to improve your digital ordering process or create memorable on-premise experiences, Bounteous x Accolite is here to help you drive digital growth and succeed in this dynamic market.

* Data from 2024 Mintel report