Digitalization in the catering industry

If just 5-10 years ago, people chose which restaurant to go to based on recommendations from friends or the one that suited them better by location, and table reservations were made in person at the restaurant or, in a better case, over the phone, now the restaurant market has changed dramatically. The pandemic has been a difficult time for every caterer. However, it has accelerated the changes that restaurants are undergoing due to digitization and the development of new technologies.

What is digitalization?

Digitization is the transformation of paper documents, in-person services, and in-house processes into electronic form.

When it comes specifically to the catering industry, digitalization means:

  • Each restaurant or catering business creates its own website.
  • Social networking sites are actively promoted and developed.
  • Opinion aggregators play an important role in the customer attraction process.
  • Internet marketing requires a bigger chunk of business investments.

Such changes result not only in the opening of a large number of restaurants but also in the closure of those that have not survived in the market through high competition. Where there is demand, there will also always be a proposal. 

According to the statistics, 60% of restaurants close after the first year of existence, and of the remaining 40%, four restaurants out of five close within the next five years. Competition in the restaurant industry is stronger than ever before. The dynamics of growth in the number of dining establishments create a situation where every restaurateur is expected to realize that the restaurant has to be known and its brand must encourage people to visit the establishment.

What advantages does digitalization bring?

The catering companies NYC can become highly successful by taking advantage of the tremendous technological developments that have completely changed people’s lifestyles. Most guests are increasingly modernizing and applying technological innovations to their lives. They expect the same behavior from the restaurant industry to make the restaurant experience match their lifestyles.

What can you do? There are many different options for accomplishing this task:

  • Website
  • Application
  • Reviews
  • Social media
  • Marketing tools

What effects will it bring?

  • Expansion of services – the ability of online ordering and delivery gives the chance to acquire customers even in remote areas where you would normally not operate. The more clients know about your business, the higher profits you earn.
  • A better understanding of consumers – most restaurateurs consider phone contact the primary source of relationship when booking, however, 22% of restaurateurs believe Facebook is the primary source of contact.
  • Greater efficiency and profitability – automated booking service and digital menus will decrease the number of customer requests. The time you save up can be used for cooking and serving optimization. 

Christopher Stern

Christopher Stern is a Washington-based reporter. Chris spent many years covering tech policy as a business reporter for renowned publications. He has extensive experience covering Congress, the Federal Communications Commission, and the Federal Trade Commissions. He is a graduate of Middlebury College. Email:[email protected]

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