Velocity of Trade
The pandemic has changed many things, however what has really happened is that it has accelerated change that was going to happen anyway. Restaurants have changed in so many ways that it can be hard to remember the way things used to be. Technology has been a significant driver of this change, but so too has consumer habits. As a result the velocity of trade in restaurants has increased and will continue to increase in the years ahead. To prepare, first you must be aware.
What is velocity of trade in restaurants?
The velocity of trade in restaurants can best be described as the number of customer transactions in a restaurant. There are simply so many more customer touchpoints and transaction points for the modern restaurant. Previously restaurants would have standard lunch and dinner sittings, probably at approx the same time each day. Now there is early morning business, mid-morning business, early lunch, late lunch, afternoon, early evening and late evening business. These are all different in their own ways
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Consumer Culture Change
Although these changes have been accelerated by the pandemic, the main reason behind this trend is changing consumer culture. We are no longer hostage to the standard office hours, and this was obvious even before the pandemic. Every person has their own unique schedule now and restuarants have adopted to facilitate. Remote work, shift work, meetings, gym sessions, special diets and many more activities have changed how we as consumers use restaurants. With this in mind it is easy to see how the restaurant trade has spread out across the day with more varying customer engagement
Diversification of Trade
Not only has the time of transaction shifted, but the scope of service for restaurants has also changed. Takeaways, deliveries, vouchers, online products and more have extended the number and type of purchases that can be done. Many restaurants have hybrid retail offerings to further increase revenue in high footfall areas. The goal is to maximize the potenial volume and value of transactions to increase profitability. All of these new customer transaction points have a significant impact on the velocity of trade in restaurants. It is also important to own the restaurant customer relationship as these changes take place
Contactless and Cashless
Contactless payments make paying for small value transactions much easier. The decline in cash as a means of payment will continue. Again these trends facilitate the velocity of trade in restaurants. Splitting bills and paying by contactless payment has become so much easier. The days of a person collecting cash from a group and paying in one go are finished. Some economies are now almost entirely cashless. More payments, more often will be the future all
Delivery on the Increase
As well as changing consumer habits in regard to when they visit restaurants there is a significant increase in the volume of delivery transactions. As the methods of delivery become more automated, to include robots and drones, so will the volume of transactions. Once deliveries are automated and less expensive, consumers will think little of ordering small value items on their own, like coffees or deserts. The increased volume of delivery transactions will have a significant impact on the velocity of trade in restaurants.
How can Restaurants Prepare for Increased Velocity of Trade
Technology and automation are the only ways that restaurants can manage this increase in trade volumes. Many more and varied transactions means that any kind of manual intervention will create bottlenecks and issues. At the core of this is the POS system that a restaurant uses. Modern POS platforms that can easily integrate with multiple apps will make this much easier. In addition, good processes will be a help when it comes to dealing with the inncrease in activity. Robust wireless coverage is also a must to make sure all working elements can be connected to the internet
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Velocity of Trade is on the Increase
As outlined above, and as already experienced by most restaurants, that trade has got much busier. With increased customer touchpoints and transactio points the modern restaurant really never closes. The days of a lunch sitting and a dinner sitting are gone and will not return. The modern restaurant is always on and always open, in the physical sense as well as online.
