Square Study Shows How Retailers & Restaurants Are Adapting to Changes in Consumer Behavior & Turning to Technology To Get Ba...
February 24 2021 - 12:00PM
Business Wire
Today, Square released a new report that reveals how retailers
and restaurateurs are taking control of the future by delivering on
customers’ evolving expectations — with an intentional focus on
technology, operating efficiency, and customer experiences. Square
developed the Future of Restaurants and Future of Retail reports to
provide a snapshot of what businesses are investing in and what’s
working.
To uncover these insights, Square collaborated with Wakefield
Research to survey restaurateurs, retailers, and consumers across
the U.S. Additionally, Square spoke to businesses and industry
experts to share how retailers and restaurateurs are facing
challenges, embracing innovative solutions, and forging new paths
forward in 2021.
"Scrappiness is in our sellers' DNA and, in 2021, we’re
expecting more of the same. It will be more important than ever to
find creative ways to meet consumers where they are most
comfortable, providing memorable experiences in-store, online,
curbside, and everywhere in between,” said Alyssa Henry, Seller
Lead at Square.
For example, after chef Anthony Strong closed his popular San
Francisco restaurant Prairie last August in the wake of COVID-19,
he didn’t give up. He emerged a couple months later with a new
concept: He transformed his 1989 Volkswagen van into a mobile
dining room, traveling the city to serve up a four-course
“glamping” dining experience. While shuttering Prairie was
devastating, Strong did what entrepreneurs have done time and again
- got back to work and innovated in the face of adversity.
Overwhelmingly, the report found that restaurants and retailers
alike are undertaking big changes to existing strategies and
adopting new technologies to stay ahead of the curve. For example,
we saw retailers increasingly turning to online and social selling
to continue serving their customers - in fact:
- 88% of retailers are now selling online
- For retailers with one location that sells online, 66%
of their revenue comes from online sales
- 84% of retailers who sell online either already sell on
social media or plan to this year
- Among retailers selling on social media, 40% of their
online revenue comes from social selling
- Online shoppers bought an average of eight products from
social media sites directly in the past month, at the time of this
survey
- 74% of retailers plan on using real-time inventory
technology this year
- 72% of consumers prefer delivery over pickup, but only
37% of retailers plan to offer same-day delivery.
"Retail has changed rapidly over the last year,” said Square’s
head of eCommerce, David Rusenko. “But the transformation is giving
retailers a chance to slow down and invest in doing things smarter
across both in-store and online channels. The changes aren't a way
to simply make it through - they're permanent and redefining what a
meaningful retail experience can look like."
And it’s not just retailers who are seeing massive shifts in
2021, restaurants are also fundamentally reimagining the way they
do business to keep their operation running smoothly, improve their
bottom line, and continue serving their customers.
- 91% of restaurants have made, or plan to make,
investments in kitchen automation technology.
- Restaurants expect 62% of their revenue to come from
takeout or delivery in 2021.
- 58% of restaurants prefer to use their own app or
website for delivery.
- Nearly half of restaurant owners or managers plan to
continue offering digital menu access using URL or QR codes in
2021
- 3 in 4 restaurants plan on offering contactless ordering
and payment options across all channels, with 61% utilizing
contactless payments on-premise
- 42% of restaurants plan to invest in customer loyalty
programs
- Restaurants that are using online ordering for delivery and
takeout expect 62% of revenue to come through those online
channels
- 67% of consumers prefer to use a restaurant’s own
website or app for food delivery
- 92% of restaurant owners and managers are open to
experimenting with their menu
“We’re seeing restaurants shift to a model that places more
emphasis on the kitchen as the central hub of the operation,” said
Bruce Bell, head of Square for Restaurants. “Restaurants are
embracing new channels for customers to interact with their
business, effectively meeting them wherever they are. Each of these
channels represents a revenue stream for the restaurant and they
connect to the same kitchen and are all managed by the same
centralized POS system."
Despite a hard year, the future is full of opportunities for
restaurateurs and retailers. For a full analysis of the top
restaurant and retail trends of 2021, industry insights from Square
experts, and real-life examples from innovative Square sellers, you
can access the report here. For questions and additional data
insights reach out to press@squareup.com.
About Square, Inc.
Square, Inc. (NYSE: SQ) revolutionized payments in 2009 with
Square Reader, making it possible for anyone to accept card
payments using a smartphone or tablet. Today, we build tools to
empower businesses and individuals to participate in the economy.
Sellers use Square to reach buyers online and in-person, manage
their business, and access financing. And individuals use Cash App
to spend, send, store, and invest money. Square has offices in the
United States, Canada, Japan, Australia, Ireland, Spain and the
UK.
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Media Contact: press@squareup.com
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