More Customers are Choosing to Dine-In

July 7, 2015
CSD Staff
The number of customers dining-in is on the rise, because customers don’t just want to buy, they want an experience.
According to a report by The NPD Group, a global information company, more customers are dining-in rather than using a drive-through or carrying-out.
Typically, an on-premises visit results in a higher average check size than an off-premises visit. NPD’s ongoing foodservice market research shows that dine-in visits represent $223.4 billion annually, whereas off-premises visits account for only $200.3 billion.
On-premises restaurant visits, which now have been up for three consecutive years, increased by 2% last year over prior year while off-premises traffic declined by 1%. For the year ending May 2015, dine-in visits were up one percent and off-premises visits were flat, according to NPD’s CREST foodservice market research. Quick service restaurants, which represent 78% of total industry traffic, increased dine-in visits by 5% last year, the highest gain of all restaurant segments. Casual dining on-premises traffic held steady in the year ending December 2014 against overall visit declines for the segment. Dine-in visits at family dining/midscale restaurants declined as did overall visits.
Consumers believe the top benefits to dining on-premises involve the experience and how good it makes them feel. Some of the reasons they provide are: Good to get out and meet someone, relaxing, I spent time with my family, fun to do, and I don’t need to worry about anything. These reasons are in line with the “experiential purchasing” trend — the idea that consumers want to do something, not just buy something — that marketers are seeing across consumer sectors. As far as reasons for selecting a restaurant, good tasting food is by far and away the cost of entry for restaurant operators looking to drive on-premises visits, followed by convenience and service.
Given their expectations, consumers who dine-in aren’t necessarily a loyal group. Some 42% of on-premises diners say they are somewhat loyal to a particular restaurant or chain, 34% say they are loyal, and 24% say they are not loyal at all. Converting them to loyal visits is an opportunity for restaurant operators, found NPD.
“The message for restaurant operators is that on-premises consumers are happier and more profitable consumers,” said Bonnie Riggs, NPD restaurant industry analyst. “Treat them right with good tasting food and the best service and a return visit is likely.”