COVID-19 Impact on Restaurant Consumers - June 2020 Update - Part One - Special Insights
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Special Insights COVID-19 Impact on Restaurant Consumers June 2020 Update – Part One revenuemanage.com
About the survey
RMS surveyed 1,200 people in Gender Generation
the United States from May
Gen Z 9%
13th to May 15th, 2020.
Millennials 32%
Gen X 24%
51% 48% 1% Boomers 29%
Female Male Other
No answer 6%
Food profile Restaurant usage
19% 41% 40%
Infrequent Moderate Frequent
users users users
Order from restaurants Order from restaurants
43% 57% at least 3x at least 5x
I live to eat I eat to live per week per week
2
Respondent breakdown
Marital status Employment status Region
18%
Northeast
Single 29%
Employed for wages 44% 22%
Living together 8% Retired 20% 26% Midwest
West
Self-employed 9%
Married 47%
Looking for work 7%
Divorced 10% 34%
Unable to work 5%
South
Widowed 5% Homemaker 6%
Student 6%
Other 1%
Other 3%
Children Household Income Geographic area
Under the age of 16 in the household
Under $50k 43%
3+ 5% Rural 22%
$50k to $100k 35%
2 11%
Suburban 49%
Over $100k 17%
Urban 29%
1 14%
No answer 5%
None 70%
3
Insight One
Consumers’ outlook on the industry
is more cautious than 1 month ago
Shifting perspectives from April to May
April 2020
When do you believe the restaurant industry will
recover to its pre COVID-19 business levels? 6 months
The majority (58%) believed recovery
34%
would take less than half a year.
6 months 33%
12 months
30% May 2020
12 months
25%
24% 6 months
3 months 22% 12 months
24 months The majority (55%) has shifted to
the belief that recovery will take
11% twice as long.
24 months 10%
Never
That includes a 40% drop in confidence that the
1% recovery will only take 6 months.
Never
There is also a growing concern that the industry
may never recover (jump from 1% to 10%).
April ‘20 May ‘20
4
Insight Two Deep dive
Consumers are using limited However, consumers are
contact channels more often… cautious when planning their
next dine-out experience:
Activity shift from April to May
Share of people reporting doing "more" or When do you next plan to dine-out at a restaurant?
"much more" increased since the pandemic began
1-2
weeks 3-4
Take-Out ASAP (10%) weeks
(11%)
10%
(15%)
Delivery
Shift in May
Drive-Thru
7%
Shift in May 9%
Shift in May
More than
4 weeks
(64%)
5
23% 25% 19%
in April in April in April
Insight Three
Consumers are less likely
to eat out post-pandemic
Post-pandemic, how often do you plan on eating out
versus before the pandemic?
50% 37% 13%
Less or much less About the same More or much more
Why? Why? Why?
Improved health and safety measures are not enough Desire for a sense of normalcy is driving respondents Eating out was routine for these respondents
to make respondents feel comfortable. In addition, who will return to pre-pandemic frequency. This group and they miss the experience. They are also
they state a desire to avoid crowds and the lack of believes restaurants have implemented the driven by a desire to support restaurants,
disposable income as reasons to eat out less. necessary health and safety measures. specifically local ones.
Back to Miss the
Health and Safety 41% 47% Experience 35%
Normal
Health and Support
Contamination 24% 15% Restaurants 14%
Safety
Social Distancing, Miss the No longer an
Others, Crowds 12% 15% issue 10%
Experience
Disposable Income 11%
% coverage ratio % coverage ratio
% coverage ratioInsight Three
When guest do eat out, they need Deep dive
visible implementation of hygiene
When asked what kind of information
policies to ease their concerns would be helpful, respondents
answered overwhelmingly: ‘Display
When returning and choosing restaurants, guests will be
primarily seeking out: hygiene policies within the restaurant’
§ Trust in restaurants’ handling of food is
quite high, according to our April survey.
§ Information on food handling,
preparation or ingredients may be less
impactful than showing guests clear
hygiene guidelines.
Increased sanitary More distance Restricting numbers
precautions taken by between tables of customers being
the restaurant servedInsight Three
Quotes from respondents
“They show the no-contact aspect
“Restaurants that began to have when they are getting your food.”
employees wear masks and
gloves was great to see. It put me
at ease as a customer.” “They are informing the public of the ways they
are practicing to keep the public safe.”Insight Four
Breakfast and lunch habits have
changed substantially for a third
of the respondents
Since COVID-19, have your breakfast/ They also reported…
lunch eating habits changed?
New healthy habits
33%
Yes 67% 15% believe this new breakfast habit has
led to more healthy eating.
Yes No
33%
Eating more
Of those reporting change… 14% report they are eating more for
breakfast as a result of WFH (time is more
36% 26% flexible, sleep later, etc.): notion of brunch
as a blurred experience of breakfast and
mentioned cooking refer to economic
lunch in one.
more at home and worries/hardships and
majority of comments are eating less for
imply they are mostly breakfast and/or More junk food
enjoying it lunch 4% reported (without prompts) on eating more
junk food throughout the day.
9Insight Five
Consumers expect restaurant
prices to increase
21% believe prices will
not increase
79%
believe that 54% believe the increase will be
prices at least 5%
will increase
as a result of 30% believe the increase will be
COVID-19 at least 10%
13% believe the increase will be
more than 10%
10Insight Five
Consumers expect restaurant
prices to increase… but why?
What are the drivers of price changes?
Lower total capacity in restaurants at any one time due to social distancing practices 67%
Increased sanitary precautions taken by the restaurant 65%
Increased cost of food 64%
Challenges faced in food supply and food processing 50%
Inflation 35%
Increased wages for front-line employees 33%
Increased cost of medical coverage for employees 27%
More local sources for food 13%
11Insight Six
Households are most concerned about
COVID-19’s economic and social impact on
their communities
What are your household concerns right now regarding COVID-19?
Deep dive
Very concerned Concerned Moderately Slightly Not concerned
concerned concerned
Food Supply
Socioeconomic impact 41% 24%
Concerns about food
shortages and lack of food
Food supply 24% 23%
variety rank highly
Household health 28% 21%
Household Health
Childcare 24% 23% Infecting members of their
households, access to
Social interactions 23% 21%
medical services and mental
health are also top concerns
Economic need 25% 19%
Personal recreation 20% 19% 12Insight Seven
Pre-pandemic, respondents chose
restaurants for food quality,
price/value and menu selection
When choosing a restaurant what do you look for?
Food Quality 42%
Price/Value 34%
Menu Selection 30%
Atmosphere 14%
Cleanliness 14%
Quality of Service 13%
Convenience 11%
Reputation/Reviews 7%
Local Ownership 2%
% coverage ratio
13Insight Seven
Post-pandemic, contamination,
sanitation/safety and cleanliness
are additional concerns
What concerns do you have about eating at restaurants in the future?
Contamination 24%
Safety and Sanitation Practices 19%
Cleanliness of Restaurant 19%
Social Distancing and Capacity 15% 1 in 6 respondents
Restaurant Access and Experience 13% are concerned about
Precaution of Staff 8%
their favorite restaurants
going out of business
Precaution of Other Patrons 6%
Prices 3%
% coverage ratio
14Insight Eight
Consumers anticipate that current
sanitation & social distancing guidelines
are here to stay for restaurants
What do you think are the long-term impacts to the way restaurants
operate due to COVID-19?
Sanitation and Safety 39%
Social Distancing and Capacity 27%
No
NoLong-Term
Long-term Changes
Changes 20%
Cleanliness 17%
Staff Training 14%
Operational Changes 12%
Loss of Business 11%
Physical and Personal Protections 11%
Price/Value 3%
% coverage ratio
15Summary of insights
1. Consumers’ outlook on the industry’s recovery 5. 79% of consumers expect restaurant prices
is more cautious than 1 month ago. to increase.
2. While the use of limited contact channels has 6. 65% of households are most concerned
increased in the last month; 64% of about COVID-19’s economic and social
respondents stated they are planning to wait impact on their communities.
more than 4 weeks before dining out again.
7. When choosing a restaurant, consumers now
3. 48% of consumers are less likely to eat out also consider contamination, sanitation and
post-pandemic. cleanliness criteria in addition to quality,
price/value and menu selection.
4. 33% of respondents’ breakfast and lunch habits
have changed substantially. 8. Consumers anticipate that current sanitation
& social distancing practices for restaurants
are here to stay.
16Increasing margins for food service and
hospitality companies for 25 years.
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