Restaurant Operators Adapt to Changing Consumer Preferences, Fueling Strong Credit Needs

The COVID-19 pandemic has fundamentally altered the relationship between consumers and restaurants, with operators investing in technology and real estate to meet shifting consumer demands. As a result, restaurant operators are optimistic about the future, planning to continue investing in mobile ordering, delivery, and real estate to stay competitive. According to the 2021 Restaurant Franchise Pulse survey conducted by TD Bank, 81% of respondents feel optimistic about the future, with 47% believing their revenue will increase significantly.

Key Takeaways:

71% of restaurant operators rely on delivery for 11% or more of sales, while 33% rely on delivery for more than 20% of sales.
65% of operators rely on mobile ordering for 11% or more of sales, with 25% relying on mobile ordering for more than 20% of sales.
Operators' top areas of investment for 2022 include mobile ordering (54%), delivery services (47%), technology such as new POS digital signage or other in-store tech (45%), and alternative payment methods (37%).
55% of operators plan to add more space for pick-up, while 45% plan to provide additional drive-thru locations.
43% of operators plan to add an outdoor on-site dining space.
Despite the challenges faced by the restaurant industry, operators have learned to pivot, with 81% feeling optimistic about the future.
61% of respondents plan to apply for a loan or line of credit within the next year.

Statistics:

72% of operators invested in delivery and mobile/online ordering in 2020 to boost revenue during mandated stay-at-home orders.
11% of sales come from delivery for 71% of operators.
20% of sales come from delivery for 33% of operators.
5% of sales come from mobile ordering for 25% of operators.

Sources:

2021 Restaurant Franchise Pulse survey, conducted by TD Bank.
TD Bank, America's Most Convenient Bank, press release, January 4, 2022.