It’s one of the eternal questions in the restaurant world: at what price point would consumers be persuaded to come in for pickup instead of delivery? Medallia, a customer and employee experience research firm, suggests a formula: if your pickup pricing is 25 percent cheaper than delivery, you have a deal.
This is just one of the findings from Medallia’s latest survey, in which it gathered insights from 1,852 U.S. consumers.
Another of its findings is a ranking of delivery features. Number one was heating/cooling packs with packaging. Second was premium packaging, such as better-than-normal materials. Third, perhaps surprisingly, was faster or priority delivery.
Having convenient and flexible ordering options is important, with 8 percent of consumers saying they would choose a restaurant over competitors for having a preferred method of available ordering, such as order ahead and delivery.
For operators pondering a marketing spend directed at Gen Z, the survey results should indicate a green light. In a question about consumer spending, Gen Z ranked the highest among generations in assuming that if a product is more expensive than a competitor, it must have increased value. Forty-three percent of Gen Z affirmed on this, followed by Millennials at 38 percent, Gen X at 29 percent, and Boomers at 22 percent.
If there is a macro-takeaway from the survey it is this: don’t be afraid to spiff up your offerings. Consumers may hang in there with you, with 52 percent of customers feeling a better experience is worth extra coin. It also found that only 41 percent of customers went with the cheapest brand option in its most recent restaurant transaction. Give consumers heightened value and you may keep them in your channels.
