As the restaurant industry enters 2024, experts are encouraging business owners to reflect on developments made in recent years. The first half of this decade has been a challenging time for restaurants, and the future can sometimes feel uncertain. By building on what they’ve learned, though, savvy restaurateurs can pull ahead of their friendly competition. To help your eatery do just that, we’ve brought together 5 key restaurant industry data points for 2024! Based on our latest end-of-year report, this information is vital for achieving long-term restaurant success and profit.
This year, global restaurant networks expect pandemic- and inflation-driven price increases and supply chain issues to begin subsiding. While this is good news for players across the industry, it also means that competition will likely become even fiercer. Adapting to modern trends will be essential for restaurateurs seeking steady profitability as consumer tastes, habits, and buying preferences change. Also necessary? Powerful restaurant technology that makes running your front and back-of-house feel simple. See how your business can stay in-sync with today’s industry below!
Restaurant Data Point #5: Coffee shops have the industry’s highest growth.
The American coffee shop landscape passed an impressive milestone in 2023: over 40,000 locations are now currently in service. It isn’t hard to see why – cafes are one of the most trendy, versatile segments of the restaurant world. They offer interesting, varied menus that serve a wide range of tastes, and have adapted to selling packaged goods well. Coffee shops have also been succeeding in the delivery app ecosystem, with year-over-year growth on these platforms totalling nearly 30%. That’s almost 10% greater than the next-highest industry segment!
If you’re looking to get into the coffee shop game, now’s a fantastic time to begin. There are many resources online that can help you get started with your own cafe in an informed, knowledgeable way. Once you do, you’ll have access to a loyal customer segment that’s worth well over a billion dollars. Coffee shops are some of the highest-performing businesses in today’s restaurant marketplace, and aren’t expected to drop any time soon. Big or small, the right coffee shop can be your ticket to success.
Not ready to open a coffee shop? Consider adding coffee to your menu as a way to earn more sales. Coffee is the cuisine with the highest growth rate (29.6%) across the U.S. and Canada, from 2022 to 2023 followed by desserts (20.2%).
Restaurant Data Point #4: Asian cuisine is the most popular delivery cuisine.
With such a rich culture of flavors, meals, and ingredients, is it any surprise Otter delivery customers adore Asian cuisine? Asian menus are extremely popular with Millennials and Gen Z – core delivery demographics – and sell more than any other niche. As part of the “ethnic food” sector, Asian restaurant cuisine is expected to gross $100 billion by the decade’s end. That makes it one of the industry’s biggest segments, and one of the most successful categories in digital delivery.
The widespread adoption of online restaurant apps has helped Asian eateries expand more than just their sales. Many delivery platforms now have features that let customers interact with owners in their native languages, growing these restaurants’ audiences. Through digital delivery, these restaurants also gain the ability to reach new eaters in a wider range of service areas. Combined with a strong tech stack, this level of expansion has made operating an Asian restaurant excellent for consistent revenue.
Restaurant Data Point #3: 4 repeat orders often lead to customer loyalty.
In today’s restaurant industry, establishing and securing customer engagement is one of the most hotly-discussed strategies for high-performing businesses. Repeat orders make up a significant portion of restaurants’ revenue, and without a steady customer base, eateries will fall behind. Throughout our research, we discovered customers who order four times from the same restaurant are likely to become regulars. By encouraging repeat orders through rewards, discounts, and perks, restaurateurs can build up a dedicated base of brand advocates.
Restaurant loyalty tech is now an expected tool in the modern business owner’s repertoire – without it, achieving engagement is difficult. Customers can be encouraged to order repeatedly from the same business through effective delivery marketing, which incentivizes frequent engagement. Unfortunately, running promotional campaigns through delivery apps can be a time- and labor-intensive process. With software like Otter’s Marketing, though, you can leverage automation to win loyal restaurant customers and meet that 4-order goal.
Restaurant Data Point #2: A virtual brand can boost your orders by over 24%.
Virtual brands are one of the hottest topics in today’s restaurant industry, and are now a mainstay of delivery apps. In 2024, these online-only storefronts have become a significant source of revenue for restaurants across the globe. Top restaurant chains are getting in on virtual brands, too, with companies like Chili’s and Applebee’s serving unique online menus. As our most recent data discovered, running one virtual brand can boost your restaurant’s orders by more than 24%. That’s a major increase in revenue – and inventory efficiency.
The value of virtual brands mainly stems from their utilization of existing restaurant resources. Being delivery-only storefronts fulfilled through pre-established kitchens, they don’t require any extra staff, equipment, or ingredients. Impactful virtual brand platforms understand what their client restaurants serve, and pair them with the right menus for consistent sales. Restaurateurs starting with virtual brands should be aware: as delivery apps remove unprofessional menus, partnering with reputable providers like Otter is vital.
Restaurant Data Point #1: The average order cancellation rate is about 3%.
One the most telling pieces of data from Otter’s 2023 end-of-year report was about canceled restaurant orders. Our research revealed that restaurants earning $10,000 in weekly revenue can lose up to $300/week from cancellations alone. That’s over $15,000 per year lost from orders that aren’t even served, and a massive loss to restaurant productivity. The leading cause of canceled orders is internal restaurant issues, driven by poor organization and an unsynchronized staff. As such, most restaurants cancel between 1.5-3% of their total orders.
Fortunately, with the right kitchen practices and powerful restaurant tech, the impact of canceled orders can be easily overcome. Apps like Order Manager streamline the entire order intake process, making every dish easier to accept, prepare, and complete. These services give a restaurant’s staff more time to focus on cooking, improving operations and order quality in turn. They also integrate directly with today’s top delivery platforms, making growth easier for restaurants of any size. By eliminating canceled orders, you can uncover thousands of dollars in yearly revenue.
Empower your restaurant with strong data and technology!
The modern restaurant industry is evolving rapidly, and adapting to the rise of digital processes is necessary for success. We encourage you to use the data here and in our 2023 Restaurant and Delivery Insights report to future-proof your business. By doing so, you’ll develop an excellent strategy for long-term revenue, growth – and the ability to stand out amongst competition. As industry experts advise, rediscovering lessons learned from previous years can help your restaurant succeed in 2024 and beyond!
