whitepaper dec 2020 welcoming generation covid back to

Welcoming Generation COVID back to restaurantsHow hospitality operators can adapt to emerging customer needs

WHITEPAPER DEC 2020

CONTENTS01 Introduction 3

4

7

15

Challenges

Transforming for generation COVID

How to respond

Conscious spending

Community connectivity

Keep cleaning

Food transparency

Green hospitality

0203

04

3.3.

Welcoming generation COVID back to restaurants

For years, restaurant operators have spent much time and budget on finding the best ways to attract customers, focusing in particular on their ideal customer persona. Brands are constantly looking at how to extend their reach attracting new demographics and finding ways to keep them loyal and away from their competitors.

A restaurant’s customer personas and buying habits, have changed over time. Dominant until recently, Millennials have been considered a complicated personality, nurtured by their Baby Boomer parents and impacted by the emergence of digital technologies, but not quite digitally native. For them, convenience is king. Lately, Gen Z has emerged; they now constitute a quarter of the population as a well-educated generation, digitally savvy, with no memory of the world before smartphones. A socially conscious group, brands need to concentrate on engagement and promoting their ethical practices to win their loyalty.

Just as operators have started to get a handle on Gen Z, COVID-19 has prematurely bought about the dawn of a new persona: Generation COVID.

We define Generation COVID as: anyone within the global population that has suffered medically, financially and/or socially as a result of the COVID-19 pandemic. Variations, resulting from age, wealth and education, exist within the group.

Depending on circumstance, Generation COVID may have less to spend. They’re increasingly driven by digital and careful about social distancing. More than that, their values and needs have shifted dramatically. For the first time in (potentially) a lifetime, this persona feels a loss of control; they crave safety and security as a result. Working from home and avoiding crowds while ploughing the money

Introduction

they do have back into the local economy is now of fundamental importance. They want to support vendors that have demonstrated integrity throughout the crisis and are more willing than ever to build solid relationships with brands that have done so.

It’s a challenge no-one in the Western world has faced before. While influences and attitudes shift usually over a period of years, giving operators time to adapt, this change has taken place in a matter of months. To survive, restaurants must let go of years of gathered customer ‘knowledge’ and accept that what they knew before, may no longer apply.

In the following paper we’ve gathered industry insight and expertise to compile essential information for restaurant operators. Designed to help brands prepare as Generation COVID return and help them implement changes that will build trust. We want to support all operators in welcoming staff and guests back to an environment that’s safe and welcoming and offering suggestions for future sales drivers.

4.4.


Dwindling numbers of office workersThe pandemic it seems, is ushering in an age of remote and flexible working, where extravagant office-based perks have little benefit, and the home office is the workers’ preference. According to research by Eskenzi PR, 91% of employees would prefer the option to work remotely. Restaurants that cater primarily to office workers, contract caterers and others that service the office environment face challenges unlike any they’ve had before. They need to put in great care, investment and a focus on innovation if their to be successful in 2021.

With each passing year, it seems there is more focus placed on the ‘best’ offices to work in and companies to work for. Millennials, it’s widely been believed, have been attracted to roles at companies that offer perks beyond the norm. Media coverage and social media attention are given to those that offer weird and wonderful perks such as treehouses in common areas, breaktime massages, hammocks or unending buffets of fruit.

Now, Coronavirus looks set to end the trend for ‘Instagrammable’ offices, pivotingattention away from quirky features andrendering them as a nice-to-have ratherthan a necessity. Generation COVID will require a much stronger focus on welfare and health and safety.

Whilst many may still be working from home for now, challenges will remain for operators that are dependent on office workers when they return. Generation COVID will, understandably, be

Challenges

concerned about germs and contamination. This, we might assume, will lead them to rely on packed lunches and home-cooked meals rather than high street restaurants and cafés.

When (or if) office worker levels do return, individually packaged meals will be the common preference. Having been feeding themselves at home for many months, workers will be looking forward to more variety and interesting choices from their lunchtime restaurant or cafe of choice.

5.5.


ChallengesGiving Generation COVID peace of mind

Generation COVID is understandably weary about dining out after an extended period of cooking for themselves and ordering take out. Operators need to be visibly demonstrating to guests that they’re doing everything they can to ensure their safety on-site.

Cash handling

Reducing the need to interact with cash will help protect customers and staff. The use of cash in the US has been on the decline for many years, for example, cash accounts for only 14.6% of transactions with credit and debit cards making up the bulk of transactions. We go deeper into the use of cashless payments later in this paper.

Aversion to staff-customer contact During recovery, operators will need to focus on staff safety as much as their customers. They’ll need to consider:

• Limiting the use of items that staff touch, for example the till or payment devices

• Supplying face masks and additional cleaning materials such as hand sanitizer and wipes

• Taking the temperature of staff before each shift to ensure safety

Recording touch-points

The infection risk goes beyond handling cash. Menus, checks, receipts and check folders, tables, ordering devices and door handles are all potential sources of infection. Operators will have to:

• Conduct comprehensive risk assessments on touch points in the hospitality setting

• Implement enhanced cleaning regimes

• Widely communicate updated standards to ensure both compliance and consumer confidence

Contact can be reduced by allowing guests to browse disposable menus or - a less wasteful solution - view digital menus on their own phones. This would let them order and pay themselves, without the need to touch a physical menu, cash or even a Pin Entry Device (PED).

Social distancing

Keeping at least two metres apart has been at best difficult and, at worst impossible for restaurants. Especially those with limited floor space. How are operators managing the requirements?

• Operating ‘booking only’ spaces to ensure limited numbers on-site and not allowing people to stand at a bars whilst waiting for their table

• Rearranging customer traffic flow; using floor stickers and line ropes to guide visitors

6.6.


• Taking simple steps to counter physical space. Narrow corridors leading to restroom facilities, for example, have been managed with one-in-one-out policies and by keeping doors wedged open to prevent the touching of door handles (although not possible for fire doors)

• Moving tables and seating further apart. It means reduced covers but there are ways to increase table turn over (think digital ordering and payment) and make up for the shortfall of having fewer dine-in guests

Hygiene and safety practices

It has been essential for operators to carry out risk assessments, following official guidance and implementing new hygiene processes in order to keep staff and guests safe as well as build consumer confidence. Restaurants are doing this by:

• Providing staff with the appropriate Personal Protective Equipment (PPE)

• Reducing shift numbers or creating staff ‘bubbles’

• Assessing whether staff fall into any at-risk groups

• Putting processes in place to practically

maintain social distancing within staffed areas such as the kitchen

• Installing clearly visible hand washing stations near entrances so staff and customers can clean their hands as they step through the door

Service areas With dine-in capacity reduced, operators will need to think about alternative ways of delivering food to guests. Options include:

• Running front door take out stations

• Capitalizing on parking areas by turning bays into collection points

• Drive-thru or curbside delivery

• Offering traditional delivery or to go services

By making the most of outdoor areas, such as parking lots and gardens, and converting them into service areas - whether for pick-up, preparation or ordering and payment - operators can continue to drive revenue whilst adhering to social distancing and other safety measures.

7.7.


Conscious spendingCOVID-19 has spread around the planet, disrupting the lives of billions of people and forcing them to adapt their lifestyles. Consumers have had to change their habits and behavior to cope in the short-term and plan for the long. With the pandemic has come job losses and furlough, financial uncertainty and concern over the long-term economic outlook of countries, from the United States, through Germany to the UK. According to Accenture, 88% of the public is worried about the impact of COVID-19 on their economy. In the US specifically, the economy suffered a dramatic slump in its second quarter with as GDP slumped to -31.4%.

Humans are an adaptable species and so, for many, the reaction has been to hunker down and shift their spending pattern. Switching choices to daily essentials and doing away with the luxuries they’d normally splash the cash on.

That reduction is universal and includes everything from clothes and home goods to food. Generation COVID has become more mindful of what they’re buying; not only do they want to cut costs but they’re striving to limit food waste and buying more sustainable options. To appeal to the consumer looking to reduce their spend and waste, restaurants should promote their cost-effective food deals and adapt menus to strongly feature both ‘green’ food options and packaging (where possible).

This state of conscious spending and mindfulness is unlikely to evaporate in the immediate aftermath of the pandemic.

Transforming for generation COVID

When QikServe asked consumers about their approach to eating out after lockdown ended, 26% said they would understand the need for food operators to increase prices at their favorite venues, but it would stop them eating there. An additional 14% said they didn’t think prices should go up at all – meaning a total of 40% of consumers would reject operators with higher priced menus.

Another study claimed 77% of Americans plan to save more and be more conservative with their finances when stay-at-home orders end and economies reopen, 32% plan to save money instead of making purchases more often post-pandemic than they did previously,and 24% say they will compare prices more often post-pandemic.

As we come to the end of the year, there are signs that consumer outlay is increasing, spending in August exceeded last year’s level for the first time since the beginning of Lockdown. Despite this, we would expect customers to remain cautious and cash concerned.

8.8.


Running in tandem with conscious spending is a shift towards community connectivity and buying local. As consumers around the world experienced lockdown, the ability to travel and spend with large brands and supermarkets became limited. As a result, consumers began to reengage with the local brands in their hometowns, celebrating smaller businesses and supporting companies that faced severe financial hardship as a result of the pandemic. Indeed, Accenture data has revealed 80% of consumers feel more or as connected to their communities since the pandemic, and 88% expect these connections to stay intact long after the crisis has passed.

That strengthening desire to shop local has being reflected in both the products consumers buy, and the way they shop. It’s something restaurants can capitalize on simply by stocking independent brands and offering them to customers while highlighting their source. Coffees roasted by local baristas; sausages sourced from independent butchers, breads baked, either in-house or by an artisan bakery. Stocking local produce is a good start to creating a sense of community connection. A part of the focus on community connectivity is an increased awareness on how businesses interact with each other – with local communities and society in general.

Community connectivity

The actions that brands, take during this time have the power to build up, or damage, a company’s reputation – and will be remembered.

Companies need to explore ways to connect locally – yes, through highlighting local provenance, but also by engaging in locally relevant ways. Giving back to regional charities, supporting the frontline and other key workers, and demonstrating a genuine concern for the difficulties faced by groups within their society. QikServe’s own survey data revealed 65% of people were more likely to trust a business after lockdown ends that supported their community, staff and other frontline workers. All actions restaurants take to this affect should be promoted through the company’s social platforms and external marketing content.

9.9.


Cleanliness, and reassuring customers of hygiene practices will, arguably, be the most important trend coming out of the COVID-19 pandemic. The virus may be vanquished at that point, but the memory of its spread will remain fresh and cause people to act with caution for the foreseeable. Generation COVID feels anxious about the return to restaurants and the safety and hygiene procedures in place. Understanding this and working to reassure people will help rebuild trust and ensure everyone feels safe.

Several organizations have delved into consumer sentiment in regards health and safety. The NPD Group published research showing that 76% of people believe hygiene will be a more important factor in choosing a place to eat than before. The same percentage also want to see strict rules to “prevent contagion” in place. Likewise, in Spring 2020, QikServe surveyed consumers, asking them to select the three most important ways that restaurants should protect customers dining in. A trio of methods stood out: 81% said they’d like to see less tables or more space between tables; 73% want the number of people within a restaurant limited; and, 40% want access to digital ordering and payment technology to minimize physical contact. The data also showed that 60% are looking for clarity around the health and safety measures companies have taken during lockdown.

McKinsey has also been surveying consumers globally throughout the pandemic; its data shows that, where consumers are buying more based on the behavior of companies, those in the USA and UK predominantly focus on the way organizations take care of the safety of their employees. Meanwhile in Germany, Spain, Japan and India, healthy and hygienic packaging takes precedent.

Keep cleaningTo build the trust of their guests, restaurants will have to make their health and safety practices very clear; it’s better to be over, rather than under communicative in times like these. Staff should wear protective clothing and be seen to wash their hands and sanitize touch points frequently. In addition, signage must be used to make clear the cleaning policy in place. Cleaning stations and distanced seating options should also be used.

A commitment to reducing the potential for contamination can likewise be demonstrated by offering staff contactless technology for ordering and collection. Many restaurants are investing in digital services to manage order ahead (to go) or order-to-table and digital payments. By giving consumers choice and implementing different types of service options, restaurants can hope to get off to the best possible start as people return to the high street. And importantly, do it safely whilst giving their customers a convenient and enriched experience.

10.10.


The options for contactless ordering technologies are varied. Amongst those provided by QikServe are:

Mobile order and pay at table or counterGuests can use their own mobile device to scan a QR code, tap an NFC tag or enter a URL to view a menu, order and pay. They can do this at their table for dine-in operations or pay at a counter when ordering through staff. As well as a web app option which involves no download, brands might opt for a native application to enable order and payment.

Online ordering to go or for deliveryGuests can use their mobile, tablet or laptop to order and pay for their meal to go or for delivery. Orders can be placed via a web portal(integrated with the restaurant’s website) or anative application.

Tablet orderingGuests can browse the menu and order using a tablet at their table. Tablets can be cleaned down between each table.

Self-service kiosksCustomers can order and pay for their meals on a kiosk and pick their meal up from the counter when ready to either eat in or take out.

With this technology, a hygiene and screen cleaning process would need to be in place.

Mobile digital menusInstead of touching shared menus, customers can scan a QR code or tap an NFC tag to pull up a menu on their own mobile device.

Restaurants already using digital ordering should review their existing solution fixing any gaps while possible; if not doing so already, program the service to offer staggered collection times. Anyone offering digital services is going to be held to much higher standards in a post-COVID-19 world; brands providing disappointing or dubious ordering and payment experiences will be shunned; in the short term, at least, consumer loyalty will be fragile and easily shattered.

11.11.


We foresee extensive adoption of food management software as an integration with online ordering over the coming months. This is not a ‘nice to have’ technology enhancement, indeed it will become an essential for all operators in the coming years.

Digital solutions can solve a number of pain points faced by restaurants when it comes to digitizing their offerings. Brands need to make sure that the solution they are offering to their customers is robust enough to cope with future demands.

The World Allergy Organisation suggests 220-250 million people suffer from allergies. Indeed, its data indicates that there has been an increase in food allergies; with between 1-2% of people allergic to peanuts, triple the rate in the mid-1990s . It’s because of numbers

Food transparencylike this that knowing the constituents of food being served is becoming increasingly important.

In the UK, that importance is reflected in the introduction of ‘Natasha’s Law’ which, alongside current legislation, came into effect from 1st Oct 2021, requiring food businesses that sell pre-packed directly for sale (PPDS) foods to have to include product labels providing the full ingredients contained, with allergenic ingredients emphasised within it.

Restaurant operators and customers need confidence that all data is accurate, complete and up to date – only digital solutions can provide this, and as well as ‘does contain’ allergy warnings, restaurants should also be able to inform customers of any risks of cross-contamination, i.e. where a menu item ‘may contain’ an allergen as a result of operational

processes.

This accurate information allows customers to make a more informed decision about what they eat depending on their specific sensitivity.

Safer contactless ordering also means less opportunity to interact with those serving and preparing food, and therefore less opportunity for customers to questionsomeone regarding ingredients, allergensand provenance. The information presented to a customer needs to be complete and accurate

12.12.


to enable them to make safe and appropriate choices. Lockdown has impacted the health of many people who may now wish to address the balance through their diet as well as additional exercise.

Recipe management software such as Kafoodle reinforces the customer’s trust by allowing them to filter the menus based on their individual needs and requirements. By selecting an allergen to avoid, or dietary preference, or even down to individual nutritional values (ie, calories, fat, salt etc) the customer can fine-tune the menu to only show what is appropriate for a truly personal and safe customer experience.

Wherever food is being served, the technology is intended to give confidence to consumers while streamlining and enhancing kitchen processes.

The consumers desire to know more about their food is increasing; sustainability, provenance and supply chain traceability.

Transparency is the key to the solution.

More than ever consumers want

to know how their food was grown,

handled, shipped, produced and

packaged, and food companies

must respond or run the risk of

being left behind. It is vital that

customers feel they can trust the

quality and integrity of the food they

are buying.

Stanley Chia, New Food Magazine

13.13.


During lockdown, one of the few areas of life left better off than before, was theenvironment. Carbon dioxide emissions fell significantly when lockdowns were imposedaround the world. In fact, daily emissions of the greenhouse gas dipped 17% by early Aprilcompared with 2019, according to Nature Climate Change.

Green hospitality

Since travel was restricted, large swathes of Generation COVID has grown to appreciate their natural surroundings more, walking, taking up jogging and cycling as a way of going out and about. Indeed, 39% of people claimed to be exercising more since the pandemic struck and US sales of bicycles were up 75% in April. The term #QuaranTONE has been born as thousands of global social media users posted pictures of their new healthy lifestyles. A survey of more than 3,000 people across eight countries has found that 40% intend to adopt more sustainable behavior in the future.

Having a “health strategy” could prove a marketing differentiator for restaurants. There’s a hope that people will take better care of the planet – and themselves. Most (92%) consumers say they are taking steps to protect their health as a result of COVID-19; plant-based diets, already assumed to be a big trend

this year, contribute to this ideal perfectly. Not only are they seen as healthier choices for the body, but they represent a major opportunity to reduce carbon emissions and to care better for the planet. The trend has already taken root to some extent – vegan meals are the fastest growing takeout choice. What’s more, with conscious spending in mind, veganism is seen as a cost-effective choice (Americans spend $961, on meat each year).

A reduction in meat consumption aside, consumers are even more focused on the source of ingredients since the pandemic began. 33% of consumers claim sustainable food has become more important to them, and the increasing production of plant-based foods will accelerate that movement. CGA Consumer Analysis shows 57% of consumers expect to be scrutinizing what they eat more carefully than before the pandemic, while 46% state that

14.14.


the transparency of ingredients is now more important.

One of the great benefits of using a pre-ordering technology is that it clearly communicates to operators the quantities of food and drink that need to be stocked. This allows waste to be minimized, something that can prove a challenge at a time when customer numbers are fluctuating. When combined with an allergen/nutrition software, guests can easily select foods based, not just on allergies and intolerances, but on dietary preference.

To make the most of the green movement, restaurants should call out the selling points of their food. Highlighting the environmental credentials of the food and drink on offer demonstrates a brand’s commitment to health, well-being and the planet.

For generation COVID, going green is more than just a trend, it’s a way of life that’s here to stay. By offering food and drink that is seen to be environmentally friendly, restaurants can appeal to this emerging customer base while reducing expenses and the business’s environmental impact.

39% of people claim to be exercising

more since the pandemic struck and

sales of bicycles were up 75% in April.

57% of consumers expect to

be scrutinizing what they eat

more carefully than before the

pandemic, while 46% state that the

transparency of ingredients is now

more important.

15.15.


How to respondThe hospitality industry is facing the toughest trading period of the past few decades. Despite its difficulties, opportunities still exist, and restaurants should prepare to take advantage of them as the population makes its return to some form of normailty. If brands can keep their eyes on the trends influencing this new Generation COVID persona, and if they adopt a problem–solving mindset, they can help bring guests back, and engage successfully with them once there.

An investment in ordering, payment and allergen technologies will be essential for any operator that has not yet acquired these digital services. CDC guidelines encourage the use of contactless payments, and that a pre-ordering service is made available; all of this can be managed using a technology like QikServe’s QikOrder platform. Further integrating an ordering technology with an allergen management software such as Kafoodle will help reassure guests.

Now is the time for brands to redefine the relationships they hold with their customers, adapting products and presentation and reimagining the ways in which they, themselves, work. We recommend a full review of the menu; form close bonds with businesses in the community, ones that can supply local produce at cost appropriate prices and consider how sustainable the packaging and practices being used are.

Much will be up in the air in the coming months, especially as footfall fluctuates, and no plans should be set in concrete. The key will be remaining flexible and creative and investing time and money in areas that allow for scaling up or down as required. Not every aspect of this period must be negative. Consider the opportunities it presents; the chance to build a stronger, more loyal relationship with customers than pre-COVID-19.

AboutQikServeQikServe is the enterprise platform for guest self-service in hospitality. Using any channel from kiosks and tablets to web and mobile apps, hospitality operators can provide powerful in-store and off-premise solutions from ordering to payment, giving guests the convenience to order and pay for their food and drinks whenever and however they want.

www.qikserve.com

whitepaper dec 2020 welcoming generation covid back to

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