Unpacking the Future of Food Service in the Digital Age

In the rapidly evolving food service landscape, quickly adapting to changing consumer behavior and technological advancements is vital. These critical aspects were recently highlighted during Dish Up by Deliverect, our first-ever virtual event where industry leaders gathered to discuss the most pressing topics for restaurant and hospitality operators worldwide.

This article will review the main points discussed during the panel about "Improving Customer Experience," an insightful conversation led by Zhong Xu, CEO and co-founder of Deliverect, and featured guest speakers Tamer Elkhayat, co-founder and managing director of PINZA!, and Benjamin Mouflard, CEO and co-founder of ChatFood —an omnichannel ordering and data-driven marketing platform recently acquired by Deliverect.

In the words of our CEO, “Customer engagement and experience are crucial. Especially these days, we must serve our customers, who are virtually everywhere. Also, returning customers spend 67% more than first-time customers. Making this engagement successful is key.”

Keeping Things Simple, Understanding Customer Behavior

While dwelling on the importance of engagement through new revenue channels, data for decision-making, and new technologies to reach untapped niches, the panel also emphasized simplicity and deep comprehension of customer behavior as central themes. 

In today's data and digital marketing era, where complicated strategies seem to dominate, Tamer Elkhayat, Co-Founder and Managing Partner of PINZA!, stressed the importance of the often-overlooked approach of keeping things simple.

While advanced technology and tools can be helpful, a thorough understanding of customer behavior is the foundation of a thriving restaurant business.

"Keep things simple and try to understand your customer behavior. Once you understand your customer, ensure you have the right products and just keep going," Tamer Elkhayat stated.

Recent studies align with Tamer's advice. A Salesforce report indicated that 84% of customers say being treated like a person, not a number, is very important in winning your business. A PWC study found that 73% of people point to customer experience as an important factor in purchasing decisions; this further highlights the importance of understanding and catering to customer behavior. In other words, “bring hospitality to the digital world.”

The Power of Personalization and Omni-Presence

As the digital landscape evolves, businesses must meet consumers in a space that increasingly values personalization and seamless experiences. One of the most significant shifts has been towards omnichannel strategies — a multi-channel approach to marketing, selling, and serving customers that provides an integrated customer experience regardless of where a customer reaches out—think of Online Ordering Systems, Social Media Ordering, or Order and Pay solutions.

"Personalization is key, and it's important to be easily accessible everywhere - on food portals, aggregators, social media, and your own website,"— Benjamin Mouflard, CEO and co-founder of ChatFood.

A Harvard Business Review study involving 46,000 shoppers underscored the importance of an omnichannel approach. The research found that 73% of respondents used multiple channels during their shopping journey. These omnichannel customers also exhibited greater brand loyalty and were more likely to recommend the brand to friends and family.

The PINZA! brand's experience offers a real-life example of successfully implementing an omnichannel strategy. With the help of ChatFood in the Middle East region for the past five years, the company has embraced and mastered being omnipresent across all channels.

Whether through food portals, aggregators, social media, or their website, PINZA! has learned to meet customers where they are, providing personalized experiences that resonate and foster loyalty. They have recognized the importance of digital presence in the areas where their customers frequent most, significantly increasing engagement and further solidifying their relationship with their customer base.

“We contact customers via email, SMS, and targeted ads on Instagram. If they miss an email or it goes to spam, they won't miss an SMS. And even if they do, they'll see our ad on Instagram. We always try to stay top of mind. We do face competition from new restaurants offering aggressive discounts, but we've maintained a high retention rate, over 80% on ChatFood (Social Media Ordering) and 60% on aggregators.” —Tamer Elkhayat, co-founder and managing director of PINZA!

Additional insights from the Salesforce State of the Connected Customer Report also support the merits of an omnichannel strategy. The report revealed that customers expect consistency across channels, with 75% expecting businesses to provide a consistent experience wherever they engage—social media, mobile, or even in-person.

In the digital age, adopting an omnichannel approach is not just a strategy; it's a necessity. As businesses strive to navigate this landscape, keeping a pulse on customer needs and ensuring a presence across all channels becomes vital. It is the path forward to enhancing the customer experience and fostering loyalty that ultimately drives success.

Harnessing Social Media: A New Revenue Channel

The panelists also highlighted the evolving role of social media in shaping the customer experience. Each platform has its unique value, and its effectiveness varies depending on the brand and target audience.

Tamer shared his experience with PINZA!, revealing how different platforms delivered different results:

"Instagram works really well for us because our product is visually appealing. However, other platforms like TikTok have been more effective for other brands we manage." 

This underlines the need for businesses to choose their platforms wisely, harnessing the strengths of each to optimize their reach and engagement, something achievable through new online ordering solutions for restaurants like Deliverect Social Media Ordering.

“Besides Instagram, TikTok, and Facebook, other platforms like Snapchat and Twitch can be very effective. YouTube and even Netflix are also venturing into this space.” —Benjamin Mouflard.

The prior is a valuable reminder that not all social media platforms are created equal, and the product, target audience, and type of content shared dictate their effectiveness, but can now become a new revenue stream for restaurants, dark kitchens, and virtual brands looking to turn engagement into profit.

Harnessing Data for Continuous Improvement

In an increasingly data-driven world, the panelists highlighted the importance of data in understanding customer behavior and driving continuous improvement. Tamer Elkhayat elaborated on the importance of evaluating the performance of various strategies, including social media promotions, to ensure they deliver the desired results:

"You can use data to understand how well a creative piece has converted customers or generated revenue. Sometimes, a picture you think is amazing may not perform well. The numbers don't lie."

However, data coming from different sources raises the question, “How do you manage?”

Tamer shares his experience: 

“Although there's an abundance of data, it puts us in a stronger position as a company because it enables us to make smarter decisions. From a KPI perspective, we primarily look at what's selling the most... This analysis helps us streamline our menu by identifying slow-moving inventory. Over time, you learn how to cross-utilize ingredients across different concepts, like sandwich and salad concepts and our newly launched burrito concept.”
It is important to remember that data is crucial in generating valuable insights and optimizing strategies that can effectively connect with customers.

Creating Connections and Building Loyalty

According to the panelists, first impressions matter significantly in establishing connections with new customers. Offering incentives such as discounts on initial orders was identified as a powerful strategy to break the ice. Still, the focus was more on the subsequent orders that ultimately built loyalty.

PINZA!’s co-founder shared insights on the importance of encouraging repeat orders, stating:

"You need to break the customer's old habits and form new ones. Between the second and third order is when loyalty and habitual behavior start to form."

It's a valuable insight into the customer's journey, offering a deeper understanding of how businesses can move beyond attracting customers to retaining them and building brand loyalty.

ChatFood's co-founder summarized the conversation by emphasizing the importance of being present and attentive to guests: "Be everywhere and listen to your guests. If you have a good product, you’ll be in a good position.”

Closing thoughts

At the Dish Up by Deliverect, professionals in the food service industry gathered to discuss the challenges businesses face in today's digital age. The panel covered various topics, such as simplifying operations, understanding customer behavior, personalization, social media usage, and building customer loyalty.

The insightful discussions provide valuable guidance to business operators aiming to improve the customer experience. These experts' wisdom serves as a guiding light for the industry as it navigates through a rapidly changing landscape. With the constantly evolving technology, restaurants and hospitality operators can utilize these opportunities to engage customers, optimize operations, and foster long-term growth.

The future of the food service industry is undoubtedly exciting, and these insights from leading voices in the field offer a roadmap to navigate the journey ahead.