The trend is towards restaurants within your own four walls
More and more people want takeaway food. This is good for restaurant operators and good for customers. Some save on space and staff costs - while keeping prices constant. Others benefit from the lower VAT on to-go meals.
Many customers of McDonald's, Burger King & Co. have probably noticed a change recently: More and more cash registers have disappeared from branches and more and more digital ordering terminals have been installed in their place. More and more seats have given way to larger waiting areas. And all for one reason: people's ordering behavior has changed dramatically - not just in Germany, but almost everywhere in the world.
More and more people are no longer eating their orders in the restaurant itself, but on the go, at home or in the office. This trend is also underpinned by exclusive data from the market researchers at Circana, which is available to "Capital". Circana regularly asks 800 representative customers what they have bought for immediate consumption. According to the survey, only 35% of visitors now eat their fast food in fast food restaurants, compared to 40% before coronavirus. A distinction should be made between fast food restaurants such as kebab stands, Asian snack bars or bakeries and classic fast food chains such as McDonald's or Burger King - these often have large seating areas and ensure that 45% of customers still eat on site in the branches.
Not a new trend
While the trend itself is not new, the data underlines the extent to which corona has accelerated the development. "Socially, a lot has shifted towards eating at home," explains Circana market researcher Jochen Pinsker. In this respect, Germany even differs somewhat from the USA, where the trend is even more noticeable overall. While Americans are increasingly eating in their own cars or at the office, in Germany people are clearly eating at home. Eating in the car has never been a big issue in Germany and working from home has changed ordering behavior in this country more than in the USA. "The office as a place of consumption has not benefited from coronavirus," says Pinsker. Instead, the trend is towards working from home - partly because high inflation is leading to cost-cutting measures. In restaurants, tips and other costs are incurred for drinks that are not available at home.
This is not a disadvantage for restaurant operators - many even expressly welcome the development. After all, if customers eat out, they can save on space and staff while keeping prices constant. What's more, to-go meals are only subject to seven percent VAT, whereas on-site meals would (normally) be subject to 19 percent VAT if this rate were not currently reduced.
Operators are also gradually reacting to the development. The first obvious changes are digital ordering terminals in the branches. These sprang up during the Corona period, primarily for hygiene reasons. But Pinsker believes that the terminals would probably have come even without the pandemic. For one simple reason: "People love digital ordering, especially because they can do it at their own pace." No pressure from other customers behind them, no impatient cashiers - payment is also easier and the perceived waiting time is shorter. The digital terminals have proven their worth. And if they weren't so expensive, they would probably be used everywhere.
Burger King seems to be reacting more decisively to the changes than McDonald's. When asked by "Capital", a Burger King spokesperson explained that 200 branches are currently being redesigned - primarily with a focus on "ordering and pick-up processes". The ordering area will be physically separated from the pick-up area, which will optimize processes. Burger King is examining whether two drive-in lanes are feasible for new builds.
Restaurant remains important
McDonald's is also moving in a similar direction, even if the company itself does not perceive some of the trends described as such. McDonald's is also increasingly installing two drive-in lanes, gradually expanding its delivery service and setting up so-called pick-up zones for takeaway. The interior of a branch is updated approximately every ten years - and is currently being digitized in particular. Nevertheless, the restaurant and the respective eating area will retain their importance, explains a spokesperson. "We cannot confirm, for example, that we are reducing the overall size of the dining area." Burger King reports something similar. They are now noticing "an alignment of usage behavior with the pre-corona period", which is why the restaurant remains important.
Pinsker does not want to contradict this, but points to the special position of the two large fast food chains. Compared to the larger group of fast food restaurants - such as stand-up snack bars or kebab stands - there is more seating here, which attracts a different clientele. However, this does little to change the basic findings: "Generally speaking, older customers eat out more often. Young people, on the other hand, use Burger King or McDonald's as a place to stay." He is now observing "that the age group in between is eating less and less on site at McDonald's or Burger King". These are mainly young people between the ages of 18 and 40.
Major megatrends are responsible for this - such as the fact that society has become more mobile. The fact that more women are working also plays a role - this means that more and more women have to eat on the go throughout the day. And last but not least, there is the increase in single households: The fewer people living in a household, the more often the occupants eat out. These developments also appear to be continuing - which is why Pinsker does not see an end to the to-go hype for the time being.
The article first appeared on Capital.de
This trend towards takeaway food has significance for the VAT paid by fast food chains like McDonald's and Burger King. Due to the lower VAT rate for takeaway meals, these restaurants can save on costs, which they can pass on to customers in the form of potentially lower prices for their burgers.
The shift towards takeaway food and digital ordering terminals has been particularly noticeable in Burger King branches, with 200 branches currently undergoing redesign to optimize ordering and pick-up processes.
Source: www.ntv.de
