Restaurant media

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Fast food restaurant multimedia tray Multimedia tray.jpg
Fast food restaurant multimedia tray

Restaurant media is an emerging form of retail media advertising used in cafeterias, fast food and family restaurants and diners and that reaches consumers while they dine.

Contents

For decades most fast food restaurant chains employed various in-store advertising media such as billboards, posters and paper tray covers and these media are rapidly being replaced by digital signage. The concept of delivering multimedia content to customers of fast food restaurants and food courts emerged in the early 1990s and became increasingly popular in recent years. Burger King and Tim Hortons were among the first fast food restaurant chains to deploy digital signage projects involving plasma displays, LCD panels, self-service interactive kiosks in their restaurants [1]

Overview

Strong competition will also continue among food service players as they attempt to capture business from these time starved consumers. Major players are already looking for innovative ways to appeal to customers, as evident by the recent renovation announcements from food service giant, McDonald's Corp. The restaurant chain is establishing what it calls the "next generation" of McDonald's – restaurants equipped with leather chairs, plasma televisions, and wireless internet. The goal of the renovation is to create a setting to win back customers, particularly young adults and families, and even attract a new type of customer who likes to linger throughout the day. The restaurants are being designed with three key zones: a fast zone, a social zone and a "linger" zone. To date, restaurants with this new format have seen increased guest counts as well as increased sales, [2] effectively demonstrating that consumers' expectations regarding the dine-in environment are changing. The major players in the food service market have been competing with new product introductions, healthier menu items and new, friendlier restaurant designs. [3] McDonald's has begun a $5 billion renovation project to try to encourage patrons to linger longer in their restaurants. [2] This demonstrates two things. One, traditional "fast food" restaurants are looking for ways to keep customers in the store longer in an attempt to generate more purchases. And two, the old value proposition behind fast food: deliver a meal cheaply and quickly is also changing. Consumers are becoming so immersed in technology, media and marketing that they are now even expecting to be entertained while they dine.

The U.S. saw an increase in the number of households from the period of 1990-2005 yet it also experienced a decline in its population. This resulted in a net decrease in the number of people per household, fuelled mainly by single person household growth (an increase over the period of 30%) as well as two-person household growth (an increase over the period of 25%). [3] Full-service and fast food restaurants will continue to benefit from this trend, as single and two person households find it more economical to eat meals out rather than prepare them at home. [4] A research study by Ipsos-Insight also found that 32% of Americans currently eat at restaurants at least a few days a week and 61% do so at least once a week. [3]

Disposable incomes in the U.S. are predicted to increase between 2005 and 2010, as a result of continued growth in the number of dual income households. This is a favorable trend for the food service industry for two reasons. First, an increase in the number of dual income households means that there is increasing time pressure on the household and a willingness to seek out convenient dining options. Second, increased disposable income typically indicates people will spend more in restaurants. This dual income segment also continually looks for an appealing atmosphere which allows them to dine with friends and family. [3]

Attempts have been made by several companies to digitize the materials on the restaurant tray cover and enhance the consumer experience by integrating multimedia devices into the fast food trays. [5] In 2006, the manufacturer of multimedia tablets called Mediox showcased the first prototypes of multimedia-enabled trays. [6] [7] Regular consumer tablets and multimedia phones quickly replaced the multimedia food trays and most of the traditional and quick service restaurants now focus on delivering content via in-store wall-mounted and cash register TVs. McDonald's has chosen to use the self-ordering kiosks as a way of showing their customers a wider range of choices. Just like how online shopping works by making it easy to "add" more items to the basket, so too do the self-ordering kiosks. Standard restaurants have begun to embrace digital menus. Instead of the standard paper menu, some restaurants are beginning to use a tablet type device in order to allow the customer to be more engaging with the menu and ultimately lead to a more satisfied choice. [8] Another technology that has advanced from a paper form into a digital one is loyalty schemes. The classic stamp cards are starting to be removed and replaced with a transaction based loyalty scheme that is linked to the consumers EFTPOS or credit card. Every time the card is used to make a purchase from the restaurant points are awarded to an online account, which can be cashed in for free items off the menu. [9]

Restaurants have also indulged in the mobile app market. Fast food companies such as Pizza Hut and Dominoes are among the many restaurants that offer an app designed for on the go, easy ordering. This idea allows for efficiency and lower wait times for busy customers who need a pit stop meal. [10] Having this data on one's phone also allows the app to update so that the customers more frequently purchased items show up faster, which along with online payments being possible through the app, makes it even simpler for the consumer to choose, order, pay for and enjoy the food.

The teen segment

There are 73 million people under the age of 18 in the U.S. and these individuals represent the next generation of spenders, a marketing-savvy group that has grown up immersed in technology, the Internet and is accustomed to instantaneous delivery of information. Marketing to the teenage segment of the population is becoming increasingly difficult as the segment now experiences targeted marketing from a very early age. It is hard for advertisers to cut through the media clutter and deliver messages that are relevant and will resonate with this increasingly savvy (yet lucrative) group. This group also tends to be the largest among early adopters of new technology. Trends in gaming, PC and internet usage and mobile technology have all become ingrained in their way of life.

According to a report from Forrester Research, promotions that work well with teens include advergames, instant-win games, online coupons, streaming video ads and cell phone promotions. [11] Restaurant media that encompasses video ads and other multimedia content and encourages interactive game playing will effectively capture the attention of this segment.

Competition in the food service industry

Competition in the food service segment is also becoming increasingly fierce as restaurants look to attract diners from other types of restaurants in order to increase their own traffic. Competitors who have not kept up through menu innovation or by offering new services have felt the strongest pressure competitively. Restaurants that demonstrate innovation and creativity to improve convenience and service will be those that achieve differentiation from competitors. Moreover, those restaurants that are able to provide new concepts that can appeal to a wider variety of customers will also realize increased returns. [3]

With new restaurants opening up so often, it is very important that restaurants keep up to date with any advancements in order to remain relevant in the ever-changing market. Media is a basic technology that restaurants must stay up to date with. Fast food restaurants are far more advanced technologically than standard restaurants, as it is acceptable to sacrifice human interaction for fast service and results. However, for a traditional restaurant, adding in self-serving kiosks for example is not an ideal advancement. That us where social media platforms open up huge opportunities for restaurants who need to stay somewhat traditional in the physical restaurant.

Social media is among the fastest growing media platforms in the modern era. Restaurants have jumped onto the social media buzz in a unique and effective way. There are many apps available to download that help restaurants attract new customers and get their name out to the public. One type of app that has revolutionised restaurant to consumer engagement is online search and discovery platforms such as Zomato and Yelp. What Zomato and Yelp do is they sell an advertising platform to the restaurant, which in turn allows users of the app to search for restaurants of a certain type with in a small radius of their location. [12] The use of this type of media allows restaurants to directly advertise to a very specific target audience, as customers refine their searches to find a specific restaurant to suit their needs. Through signing up for social medias such as Zomato and Yelp, the restaurant is also telling the customers that they are confident in the quality of their product as the app allows customers to place reviews on their experience at the restaurant . In 2009, 70% of all restaurants were listed on Yelp. [13] A positive correlation exists between the revenues of restaurants and their online reviews.

Online review platforms are not the only form of social media that has revolutionised the restaurant industry. Even the large social medias such as Facebook and Twitter have had a huge impact on the industry. An example of this was KFC's release of the Double Down burger. Whether the topic of discussion was positive or negative regarding the Double Down, conversations through Facebook and Twitter especially had a greater success of reaching consumers than any advertising campaign for the burger did. The hype and controversy over the burger in May 2011 made it the most desired item on the Kentucky Fried Chicken menu. [14] The idea of using a social media in the restaurants advantage is to get people talking about a restaurant or a menu item. This is essentially free advertising. Not only is it free, but also 92% of all consumers believe recommendations from friends and family over any advertising campaign. [15] Restaurants want to utilize the opportunity for free advertising via Facebook, as it is a platform that can be constantly updated with new items, deals or even new store locations. Photos and videos are a far more effective advertising medium, which makes Facebook a perfect media to use for advertising product.

Related Research Articles

<span class="mw-page-title-main">Fast-food restaurant</span> Type of restaurant

A fast-food restaurant, also known as a quick-service restaurant (QSR) within the industry, is a specific type of restaurant that serves fast-food cuisine and has minimal table service. The food served in fast-food restaurants is typically part of a "meat-sweet diet", offered from a limited menu, cooked in bulk in advance and kept hot, finished and packaged to order, and usually available for take away, though seating may be provided. Fast-food restaurants are typically part of a restaurant chain or franchise operation that provides standardized ingredients and/or partially prepared foods and supplies to each restaurant through controlled supply channels. The term "fast food" was recognized in a dictionary by Merriam–Webster in 1951.

<span class="mw-page-title-main">A&W Restaurants</span> American fast food chain

A&W Restaurants is an American fast food restaurant chain distinguished by its burgers, draft root beer and root beer floats. Being the oldest restaurant chain in America, A&W's origins date back to 1919 when Roy W. Allen set up a roadside drink stand to offer a new thick and creamy drink, root beer, at a parade honoring returning World War I veterans in Lodi, California. Allen's employee Frank Wright partnered with him in 1922 and they founded their first restaurant in Sacramento, California in 1923. The company name was taken from the initials of their last names – Allen and Wright. The company became famous in the United States for its "frosty mugs" – the mugs were kept in a freezer and filled with A&W Root Beer just before being served to customers.

<span class="mw-page-title-main">Fast food</span> Food prepared and served in a small amount of time

Fast food is a type of mass-produced food designed for commercial resale, with a strong priority placed on speed of service. It is a commercial term, limited to food sold in a restaurant or store with frozen, preheated or precooked ingredients and served in packaging for take-out/take-away. Fast food was created as a commercial strategy to accommodate large numbers of busy commuters, travelers and wage workers. In 2018, the fast food industry was worth an estimated $570 billion globally.

The Arch Deluxe was a hamburger sold by the international fast food restaurant chain McDonald's in 1996 and marketed specifically to adults. It was soon discontinued after failing to become popular despite a massive marketing campaign and now is considered one of the most expensive flops of all time.

<span class="mw-page-title-main">Digital signage</span> Sub-segment of electronic signage

Digital signage is a segment of electronic signage. Digital displays use technologies such as LCD, LED, projection and e-paper to display digital images, video, web pages, weather data, restaurant menus, or text. They can be found in public spaces, transportation systems, museums, stadiums, retail stores, hotels, restaurants and corporate buildings etc., to provide wayfinding, exhibitions, marketing and outdoor advertising. They are used as a network of electronic displays that are centrally managed and individually addressable for the display of text, animated or video messages for advertising, information, entertainment and merchandising to targeted audiences.

Mobile marketing is a multi-channel online marketing technique focused at reaching a specific audience on their smartphones, feature phones, tablets, or any other related devices through websites, e-mail, SMS and MMS, social media, or mobile applications. Mobile marketing can provide customers with time and location sensitive, personalized information that promotes goods, services, appointment reminders and ideas. In a more theoretical manner, academic Andreas Kaplan defines mobile marketing as "any marketing activity conducted through a ubiquitous network to which consumers are constantly connected using a personal mobile device".

<span class="mw-page-title-main">BK Chicken Fries</span> Fried chicken product sold by Burger King

BK Chicken Fries are a fried chicken product sold by the international fast-food restaurant chain Burger King. At the time of their introduction in 2005, the company had intended Chicken Fries to be one of their larger, adult-oriented products made with higher-quality ingredients than their standard menu items. Additionally, the product further targeted the snacking and convenience food markets with a specific packaging design that was intended to be easier to handle and fit into automotive cup holders. The product was part of a series of product introductions designed to expand Burger King's menu with both more sophisticated fare and present a larger, meatier product that appealed to 24- to 36-year-old males. Along with this series of larger, more complex menu products, the company intended to attract a larger, more affluent adult audience who would be willing to spend more on the better-quality products. They were discontinued in the United States in 2012, but continued to be sold in some markets, such as Italy. In August 2014, they were reintroduced for a limited-time offering (LTO) in North America, leading to their permanent re-addition to the menu in March 2015 in over 30 countries globally.

Restaurants fall into several industry classifications, based upon menu style, preparation methods and pricing, as well as the means by which the food is served to the customer. This article mainly describes the situation in the US, while categorisation differs widely around the world.

When the predecessor of international fast food restaurant chain Burger King (BK) first opened in 1953, its menu predominantly consisted of hamburgers, French fries, soft drinks, milkshakes, and desserts. After being acquired by its Miami, Florida franchisees and renamed in 1954, BK began expanding its menu by adding the Whopper sandwich in 1957, and has since added non-beef items such as chicken, fish, and vegetarian offerings, including salads and meatless sandwiches. Other additions include a breakfast menu and beverages such as Icees, juices, and bottled waters. As the company expanded both inside and outside the United States, it introduced localized versions of its products that conform to regional tastes and cultural or religious beliefs. To generate additional sales, BK occasionally introduces limited-time offers of special versions of its products, or brings out completely new products intended for either long- or short-term sales. Not all of these products and services have been successful; in 1992, Burger King introduced limited table service featuring special dinner platters, but this concept failed to generate interest and was discontinued.

<span class="mw-page-title-main">Social media marketing</span> Use of social media platforms and websites to promote a product or service

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<span class="mw-page-title-main">Disposable food packaging</span>

Disposable food packaging comprises disposable products often found in fast food restaurants, takeout restaurants and kiosks, and catering establishments. Food-serving items for picnics and parties are very similar. Typical disposable foodservice products are foam food containers, plates, bowls, cups, utensils, doilies and tray papers. These products can be made from a number of materials including plastics, paper, bioresins, wood and bamboo.

<span class="mw-page-title-main">Smashburger</span> American fast-casual chain

Smashburger IP Holder LLC, doing business as Smashburger,, is an American fast-casual hamburger restaurant chain founded in Denver, Colorado. As of 2022, it has more than 227 corporate and franchise-owned restaurants in 35 U.S. states and the District of Columbia and 2 Canadian provinces.

Urbanspoon was a restaurant information and recommendation service founded in 2006 by former Jobster employees that offered its services in North America and parts of English-speaking Australasia and Europe. In January 2015, Zomato, an India-based restaurant search and discovery service, acquired Urbanspoon.

Zomato (/zoʊˈmætɔː/) is an Indian multinational restaurant aggregator and food delivery company, founded by Deepinder Goyal and Pankaj Chaddah in 2008. Zomato provides information, menus and user-reviews of restaurants as well as food delivery options from partner restaurants in more than 1,000 Indian cities, as of 2022.

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<span class="mw-page-title-main">KFC in China</span> Fast food restaurant chain in China

KFC is a fast-food restaurant chain founded by Colonel Harland Sanders in Salt Lake City, Utah, in 1952. KFC specializes in selling fried chicken and is known to have diversified the fast-food market by challenging the dominance of the chicken burger. In 1930, at the age of 40 Colonel Sanders bought a roadside motel in Corbin, Kentucky to sell his southern style chicken. By 1939, he had created his blend of 11 herbs and spices that are still used in the recipes today. In 1950, the colonel became an icon by regularly wearing his white suit in public. 1952 marks the opening of the first Kentucky Fried Chicken franchise in Salt Lake City, Utah. In 1957, the original KFC bucket became recognized worldwide. Due to the rapid growth of KFC, Colonel Sanders sold his company to a group of investors in 1964 and moved to Canada for the remainder of his life.

<span class="mw-page-title-main">Food delivery</span> Courier service in which food is delivered to a customer

Retail food delivery is a courier service in which a restaurant, store, or independent food-delivery company delivers food to a customer. An order is typically made either through a restaurant or grocer's website or mobile app, or through a food ordering company. The delivered items can include entrees, sides, drinks, desserts, or grocery items and are typically delivered in boxes or bags. The delivery person will normally drive a car, but in bigger cities where homes and restaurants are closer together, they may use bikes or motorized scooters.

Brightloom is an American company based in San Francisco that provides automation technology to restaurants. Both Eatsa and Brightloom are trade names used by Keenwawa, Inc., a Delaware corporation, which is the true legal name of this company.

Uber Eats is an online food ordering and delivery platform launched by Uber in 2014. Meals are delivered by couriers using cars, scooters, bikes, or on foot. It is operational in over 6,000 cities across 45 countries as of 2021.

References

  1. ↑ Burger King virtual fun center
  2. 1 2 Boston Business: New generation of McDonald's, complete with redone amenities and menu, is headed this way
  3. 1 2 3 4 5 Euromonitor International: Market insight (September 2006): The Market for Consumer Foodservice in the USA
  4. ↑ Euromonitor International (September 2004): The Market for Consumer Lifestyles in the USA (page 78)
  5. ↑ Food Magazine: Tray of the Future
  6. ↑ QSR Magazine: Advertising on the Food Tray
  7. ↑ US Patent: Method and apparatus for delivering and displaying multimedia content to food service customers.
  8. ↑ "5 tech trends from the NRA Show". National Restaurant Association. Retrieved 2016-03-31.
  9. ↑ "5 Restaurant Loyalty Program Tips to Win Millennials". Software Advice. Retrieved 2016-03-31.
  10. ↑ "10 Trends in Restaurant Technology You Should Know About". Squadle. Retrieved 2016-03-31.
  11. ↑ Euromonitor International: Market insight (September 2006): The Market for Consumer Foodservice in the USA (page 3)
  12. ↑ "About | Zomato". Zomato. Retrieved 2016-03-31.
  13. ↑ "How Social Media is Revolutionising the Restaurant Industry - Brandwatch". Brandwatch. Retrieved 2016-03-31.
  14. ↑ Herald, New Zealand. "EDITORIAL: Finger licking good promo". m.nzherald.co.nz. Retrieved 2016-03-31.
  15. ↑ "Why Word Of Mouth Marketing Is The Most Important Social Media". Forbes. Retrieved 2016-03-31.
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