Digital Ordering Gains Momentum

Research highlights that 60 percent of Kiwis are visiting pubs, bars and restaurants at the same frequency as usual, with 15 percent going out more than usual, according to CGA’s Consumer Pulse.

CGA’s On Premise Consumer Pulse checks in with 500 New Zealand On Premise visitors every month to understand their recent behaviour, how they feel about the channel (including any COVID-19 restrictions) and their intentions for visits in the month ahead.

The main drivers of those visiting less than usual are cost of living and disposable income concerns, with 43 percent stating they are trying to save money. 40 percent are concerned about Covid-19 cases, dropping significantly by 15 percentage points versus April.

Post-Covid-19 research highlights consumers' focus on interaction with digital platforms, revealing that 84 percent of consumers interact with at least one online platform ahead of their visit to a venue, increasing to 88 percent in 18-34 year olds. The On Premise Path to Purchase has evolved, with New Zealand consumers viewing offers pre-visit and then ordering in-outlet.

Over a quarter (28 percent) of customers are influenced on what to drink by a general online drinks menu prior to visit, with 17 percent of consumers influenced pre-visit specifically by an online cocktail menu and 10 percent for Wine menus. This presents a significant opportunity for beverage brands to partner with operators to develop targeted campaigns within these categories. 

When in-venue, 53 percent of consumers now interact with digital menus and online ordering platforms. This is mainly driven by younger age groups, who are more receptive to these platforms, with 44 percent finding them appealing and 70 percent more likely to use them to place orders. For many consumers, especially those aged 18-34, digital ordering platforms provide an opportunity to enhance the experience, with participating venues thought of as more modern by 40 percent, and by 30 percent as delivering faster service.

Around a third (32 percent) of consumers are also more likely to spend more time browsing the menu when using digital ordering platforms, while a quarter are more likely to read drink descriptions, suggesting this technology supports exploration of the whole offer. While 18 percent look at more drinks categories, 17 percent try new or different drink types, 16 percent try new/different brands and 14 percent are more likely to take drinks recommendations provided via digital platform. 

When it comes to ordering, New Zealand consumers still prefer the service dynamic, with 56 percent preferring to order via a server at the tables when it comes to drinks, and 30 percent with a bartender at the bar. While digital ordering is perceived as convenient, consumers are opting for in-person ordering because they enjoy the interaction and waitstaff are able to answer any questions they might have.

This is particularly relevant for more high-end, premium venues where just a small percentage of consumers would expect to see digital menus – 41 percent of consumers are more likely to expect these in quick service venues or fast food outlets, and 32 percent at value venues.