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Restaurant and Dining Industry Head Towards Recovery in 2021

Published Date
Author Anna Rash

In 2020, nearly all restaurants had to pivot their dining experiences and offerings to meet the safety needs of Americans. Further, the National Restaurant Association reported $659 billion in Restaurant industry sales in 2020, down $240 billion from expected levels. But this year promises to shine new light on food and dining as more consumers are eager to enjoy their favorite meal out again. The latest insights from RetailMeNot show that the restaurant industry may just be 2021’s comeback kid story. 

After 365 days of shutdown, restrictions and social distancing, RetailMeNot’s Q1 2021 survey reveals 48% of Americans say they miss going out to eat as often as they used to prior to COVID-19 and nearly the same amount say they will be more grateful for special dining out experiences in the future. Baby boomers especially miss eating out, with 90% reporting they would like to dine at restaurants more frequently, according to the National Restaurant Association.

Quality of Food, Discounts and Price Top Decision Factors

Last year, the restaurant industry was forced to pivot their dining experiences as consumer expectations shifted. However, with a vaccine now in market, nearly half of Americans (44%) say they plan to dine outside of their homes more often moving forward.

So, what are the top factors driving diner’s decisions in 2021? 

  1. Food quality

  2. How well the restaurant is following safety protocols

  3. Price

  4. Distance between tables

  5. The number of people the restaurant is seating

Lingering safety protocols hang on from 2020, but food and price are still among the most important decision-making factors. Additionally, 73% of Americans say that finding deals and discounts is more important to them than recommendations from friends (71%) and free delivery (68%) when considering a restaurant in 2021.

Online Ordering, Curbside Pickup and Increased Delivery Capabilities Enable Momentum

As droves of consumers settled into life at home last year, the itch to get out of the home kitchen and enjoy a meal at a favorite restaurant pushed Americans to become more comfortable with ordering through online channels -- and forced restaurants to embrace digital technology like never before. RetailMeNot data found that more than half of consumers ordered food from a casual dining restaurant (57%), fast casual or fast food establishment (55%) via an app or website in the last year. And four in 10 ordered online ahead of time for fine dining.

While the industry expects app usage, online ordering and curbside trends to stay post-pandemic, there is still growing consumer desire for a meal out. Currently, Gen Z feels most comfortable dining in restaurants given restrictions (52%), followed by Millennials (46%), Gen X (43%) and Boomers (38%). 

It’s no surprise that Americans miss the social aspect of dining out, and are sure to return in full force in coming months, but factors like value and convenience will play an important role as well as Americans continue to recover from the economic impact of 2021. Restaurants can stand out with clear messaging of offers, safety guidelines and making sure they are where the consumer is -- which looks more digital than ever. 

For more information on RetailMeNot restaurant insights check out our latest infographic here. Want to know how to partner with our team? Visit www.retailmenot.com/corp

 

Source: RetailMeNot Q1 Consumer Survey, Kelton Research, January 2021, n=5,134.