CHERRY HILL, N.J., Feb. 14, 2018 /PRNewswire/ -- Mobile
technology development and integration is a top priority for
restaurant franchise owners and franchisors, according to a survey
conducted by TD Bank, America's Most Convenient
Bank®, at the 2017 Restaurant Finance and
Development Conference in Las
Vegas. In fact, more than half (59 percent) of those
surveyed plan to integrate smartphone/tablet apps and/or mobile
ordering, or develop a mobile app in 2018.
TD's survey polled franchise owners and operators of
quick-service and fast-casual restaurant brands. Fifty-four percent
of respondents own or operate stores that are part of a major
national brand, and 44 percent stated they own 25 or more
restaurant locations. When asked how mobile ordering has
specifically influenced their restaurants, respondents cited that
it could:
- Help expand their customer base (55 percent)
- Eliminate the need to hire more staff (16 percent)
- Speed up the food preparation, cooking and delivery process (15
percent)
"In addition to the back-end benefits, mobile apps provide an
opportunity for restaurants to communicate with customers in new
ways by offering customized service and incentives that provide a
more seamless experience and help encourage needed repeat
business," said Mark Wasilefsky,
Head of Restaurant Franchise Financing Group at TD Bank. "We live
in a mobile society in which consumers expect that ordering food ―
like any product ― should be quick and easy. Smart franchise owners
will take advantage of the latest technology to reach customers
through their devices."
Restaurants Adjust to Shifting Consumer
Demographics
As the industry and customer base evolve,
franchises are channeling resources into retaining existing
customers while also building a new, younger fan base. Beyond
mobile enhancements, survey respondents reported that their top
investment areas include: adding locations (70 percent); developing
social media strategies to target Generation Z, ages 0-18, (56
percent); and creating or enhancing customer loyalty programs (55
percent). Additionally, restaurant industry professionals noted
that menu enhancements/changes (54 percent) and meal delivery
services (47 percent) will become key business strategies.
For most franchise owners, Baby Boomers and Gen-Xers with
disposable income are becoming less vital to business decisions, as
Millennials (ages 20-36, also known as Generation Y) are seen as
the future of the industry. Indeed, 69 percent of franchise owners
believe Millennials are most responsible for fueling the innovation
that affects business plans.
"Millennials make up more than one-quarter of the U.S.
population, and this generation is known to seek out new
experiences while expecting high-tech interactions and convenience
with any purchase," said Wasilefsky. "Restaurants that are able to
cater to the preferences of Millennials will successfully capture a
key customer segment and gain an edge on the competition."
Healthcare and Immigration Reform Pose Operational
Concerns
Policy changes continue to affect restaurant
franchise business operations. Particularly, healthcare regulations
impacted revenue and operations the most, according to 60 percent
of respondents, followed by immigration reform at 18 percent.
Industry-targeted policies such as menu calorie count requirements
and sugar/beverage taxes, meanwhile, had less impact on the bottom
line overall.
Survey Methodology
TD Bank polled restaurant franchise professionals at the 2017
Restaurant Finance and Development Conference held in Las Vegas, Nevada, in November 2017. A total of 260 responses were
collected from industry professionals, including franchisees and
franchisors.
About TD Bank, America's Most Convenient
Bank®
TD Bank, America's Most Convenient Bank, is one of the 10 largest
banks in the U.S., providing more than 9 million customers with a
full range of retail, small business and commercial banking
products and services at more than 1,200 convenient locations
throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas
and Florida. In addition, TD Bank
and its subsidiaries offer customized private banking and wealth
management services through TD Wealth®, and vehicle
financing and dealer commercial services through TD Auto Finance.
TD Bank is headquartered in Cherry Hill,
N.J. To learn more, visit www.tdbank.com. Find TD Bank
on Facebook at www.facebook.com/TDBank and on Twitter
at www.twitter.com/TDBank_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank
Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services
company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock
exchanges under the ticker symbol "TD". To learn more,
visit www.td.com.
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SOURCE TD Bank