Canadian Food and Beverage Industry Faces Challenges in Customer Engagement

A new report released by Eagle Eye, an SaaS digital marketing provider, reveals a significant shift in Canadian consumer dining habits and their attitudes toward food and beverage brands. This presents new revenue opportunities for Canadian businesses heading into 2019.
 
Eagle Eye’s report, “Changing Tastes & Flavours: Canadians’ Attitudes Toward Food and Beverage Brands Are Changing. Are F&B Operators Moving Fast Enough?”, comes at a time when Canada’s geography, landscape, and varied demographics have created a national food and beverage industry that is dynamic, competitive, and as diverse as its citizens. But even with the global economy's unpredictability and fast-paced technological developments, the Canadian food and beverage sector has remained resilient.
 
Based on a survey conducted by Eagle Eye of 2,000 Canadian consumers and over 200 food and beverage professionals, the report looks at the relationship between how consumers engage with food and beverage establishments and the technologies with which food and beverage operators are equipped. Key consumer statistics include:
 

  • 71 percent of respondents have meals outside of their homes up to 10 times per month.
  • Younger generations and working professionals dine out more frequently, up to 20 times per month.
  • 62 percent of consumers spend up to $30 per visit.
  • 30 percent of Canadian consumers are currently members of a restaurant loyalty program.
  • 13 percent of Canadians use third-party delivery services like Uber Eats to order from restaurants, rather than through the restaurant directly.
 
With more options for interacting with restaurants, bars, quick service restaurants, taverns, and other food and beverage establishments, consumer dining habits have evolved significantly over the last 12 months. These behaviors include a higher frequency of restaurant delivery, getting fast food, buying prepared foods from the grocery store, getting takeout from a restaurant, and ordering third-party food delivery services.
 
But while dining out remains at an all-time high for consumers, new data shows that many food and beverage operators are failing to engage with consumers—and losing out on revenue opportunities in the process:
 
  • 38 percent of consumers have not received communications from a restaurant brand in the past three months.
  • Only 22 percent have received a personalized offer to prompt a first time-visit.
  • 35 percent have received an offer to prompt a return visit.
  • 60 percent of consumers would return for another visit if offered a coupon.
  • Only 30 percent of operators use technology, data, and insights to identify their customers through promo codes, card payments, or loyalty memberships.
 
“Today’s food and beverage sector is increasingly competitive, but most operators lack insights into who their customers are, how often they visit, and what they're ordering,” says Tim Mason, Chief Executive Officer at Eagle Eye. “To capitalize on the revenue opportunities our report has uncovered, Canadian brands need to become digitally connected to gather customer data, create a direct marketing channel, and stand out from their competitors. With the right digital infrastructure, food and beverage operators can cost effectively drive repeat visits and increase spend per visit.”
 
The report also speaks to major challenges food and beverage operators face across Canada, including:
 
  • Fraud continues to impact the industry, with 79 percent of operators experiencing customer- and staff-related fraud.
  • 36 percent of restaurant owners struggle with rising costs, but this is most prominent among independently-operated businesses and those in operation for 20 years or more.
  • Staff turnover can be as high as 200-300 percent in a given restaurant.
 
Strategies to overcome these challenges and engage with customers in real-time via digital, mobile, and social channels are also addressed in the report. These strategies should help operators strengthen brand loyalty and drive revenue growth in a highly competitive market.
 

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