Key findings: 40% of respondents are now using small order delivery for their restaurant customers with Uber Eats the top choice for delivery. Amazon Restaurants was second, Door Dash third, Grub Hub fourth and Post Mates fifth.
Respondents said delivery is providing 2.9% in incremental sales, with slightly lower margins than in-restaurant sales. In the future, 20% more respondents plan to add delivery in the next five years.
Additional findings from survey respondents from across the state from multiple industry segments such as casual dining, quick service, fast casual, fine dining, pubs and bars, show the following trends:
- Restaurant owners saw slightly weaker consumer demand in the first quarter of 2017 after a strong fourth quarter of 2016 that was aided by mild weather.
- First-quarter 2017 same-store sales for restaurants in Ohio were up 2.2%, which was lower than 3.2% growth in the fourth quarter of 2016 and 3.1% in the third quarter last year. The growth was driven by a mix of customer traffic, which was up 1.5%.
- April 2017 same-store sales for restaurants in Ohio were up 2% and respondents remain very bullish about the rest of the year. Restaurateurs in Ohio expect sales to grow 4% for the year vs. 3% in 2016.
Barker added, "With 40% of restaurant respondents now offering delivery, customers have more choices. A combination of to go orders, delivery and catering appear to be critical elements of growth for many restaurants. This clearly aligns with busy lifestyles, two career households, boomers and millennials who value convenience.”
The survey also indicated that food costs are creeping higher after a favorable final six months of 2016, and that labor costs of a percent of sales ran above 30% for the second straight quarter reflecting higher wages. Operators continue to struggle with labor costs and availability of talent.
The ORA survey included responses from 85 restaurateurs from across the state.
The results reflect the input of more than $350 million in revenues for Ohio restaurants, which averaged 3.4 locations and $1.2 million in average unit sales. Click here to access the survey results.
About the Ohio Restaurant Association
The Ohio Restaurant Association (ORA), founded in 1920, is the leading business trade association for the Ohio foodservice industry, the third-largest private sector employer in Ohio. ORA represents the interests of Ohio's $20 billion restaurant industry, comprised of 22,023 locations and more than 574,200 employees. The ORA provides its members with advocacy, information services, education and a variety of cost-saving benefits. For more information, visit www.ohiorestaurant.org.
Phone: (614) 315-4697
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