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Daily news and analysis about the food tech revolution

BentoBox

BentoBox Survey: Restaurants & Their Customers Embrace Direct Online Ordering

It’s clear that the COVID-19 pandemic changed the way restaurants do business. As a purveyor of online marketing and commerce solutions for the hospitality industry, New York-based company BentoBox recently decided to quantify some of those changes.

BentoBox saw a jump in business during the pandemic, with more restaurants seeking the online tools that the company offers. The team used data from that growing customer base to understand how the pandemic has reshaped the food industry since March 2020—and what might be next for restaurants.

“We mined all our data to see what it says about what’s going on in the market,” BentoBox’s Chief Marketing Officer Darcy Kurtz told The Spoon in a recent Zoom interview. “That’s been especially important these last couple of years, because things are shifting so quickly, and so dramatically.”

One of the biggest themes in the data was a rise in costs for restaurants, reflected in price increases on restaurants’ online menus. “The food itself is costing more, labor is costing significantly more when you can even get it, and real estate costs are significantly higher,” Kurtz said. And for restaurants, which operated on thin margins even before the pandemic, those price increases can sting.

One way to combat rising costs is by switching to the ghost kitchen model–and BentoBox saw a 100% increase in the number of ghost kitchens using its software platform this year, according to the company’s recently published report. The ghost kitchen model also has a relatively low cost of entry, allowing new restaurants to launch more easily without the need for heavy investment.

BentoBox’s pool of restaurant customers has grown by almost 60% since March 2020. Kurtz attributed that boom in business to a new emphasis on the importance of restaurants’ virtual experiences. “Today, your digital presence is really your front door,” Kurtz said. That’s especially true for ghost kitchens, which rely completely on their online presences to get discovered.

The majority of the company’s growth was driven by increased sales of online ordering tools. Before the pandemic, many restaurants didn’t have direct online ordering functions on their own websites, instead relying on third-party platforms like GrubHub and Uber Eats.

“But when COVID hit and there was only one way of getting revenue, restaurants added their own online ordering paths in droves,” Kurtz said. And diners have responded: According to the report, BentoBox found a 54% year-over-year increase in direct online order volume. The company also noted a 200% increase in restaurants’ monthly revenue through digital loyalty programs.

Kurtz said that loyalty to local restaurants drove these trends: “People have learned that third party ordering apps take a lot of money from their favorite restaurants. So once their favorite restaurants got online ordering, customers said ‘oh, I’ll just go direct because I know that’s best for my local restaurants.’”

With the Omicron variant rearing its head, there’s no way to be certain of how in-person restaurant business will recover in the near future. But BentoBox’s data is clear on one thing: Online ordering is here to stay.

“What we’re finding is that people are just eating out more. They’re still doing online ordering—and they’re doing it all week, not just on the weekends,” Kurtz said. “They found out how convenient it is, and they found out that delivery food can still taste great. So I think for restaurants, the great news is that there are new revenue streams and the total available market of diners has grown.”

But Kurtz predicted that restaurants may struggle to support that expanded business model in an ecosystem where labor is scarcer and inputs cost more.

Because the pandemic has shifted the rhythm of delivery demand, restaurants will also have to adapt to a new schedule. “The fact that Fridays haven’t rebounded is a signal that the hybrid work model is going to have an effect on the operational cadence of these restaurants,” Kurtz said. “Especially with restaurants that are in business districts, they’re really going to have to figure out how to shift their operations, because it’s not going to be a steady five-day-a-week sort of operation.”

With restaurants’ online presence growing in importance, we’re likely to see more growth for commerce and marketing solutions companies like BentoBox. And in turn, that growth should provide more consolidated data on the new shape that the industry is taking.

Q&A: How BentoBox Helps Restaurants Take Back Their Customer Relationships Through Tech

Before the off-premises boom, there was no question of restaurants owning their relationships with customers. One pandemic and a whole lot of digital tools later, and that ownership is a little less certain, and restaurants often give up valuable customer data and feedback to bigger tech companies (e.g., third-party delivery services). Now, however, a number of tech companies are promising to change this by putting more digital interactions with customers back restaurants hands, so to speak.

A company called BentoBox does it by helping restaurants create and manage their own digital storefronts. The BentoBox platform facilitates a number different areas of running a restaurant in the digital age: online order management, website design, dine-in order and pay, digital gift cards, and event management, to name a few. These and other features promise to give restaurants a direct relationship to their customers, even when those interactions are entirely conducted through a website or mobile app.  

Ahead of The Spoon’s upcoming Restaurant Tech Summit on August 17, we caught up with Krystle Mobayeni, CEO and Founder of BentoBox, who will also be speaking at the event. Read our full Q&A with her below, and if you haven’t already, grab a ticket to the virtual show here.

This Q&A has been lightly edited for clarity.

1. What problem does BentoBox solve for restaurants/the restaurant industry?

BentoBox helps translate restaurants’ on-premise experience to their digital storefront in a way that matches their standards of hospitality. We do this through a full-service website, commerce, and marketing platform that helps operators cultivate stronger guest relationships — and drive high-margin revenue through their websites.

2. What is the biggest change in terms of the restaurant industry’s approach towards technology as a result of the pandemic?

Before the pandemic, restaurants and technology co-existed. Restaurants focused on their dining rooms and adopted piecemeal technology tools along the way. Restaurants also viewed the guest experience in the brick and mortar as separate from the guest experience online. The pandemic has shown that restaurants need to think about these as one holistic experience and embrace the right technology to connect the on-premise and off-premise experiences. 

With that, the pandemic has rapidly accelerated the shift to a single, modern restaurant experience where restaurants can connect with their guests across all channels. With the support of the right technology, restaurants can build direct relationships and more personal ones to stay resilient and thrive going forward. 

3. What are the most important first steps a restaurant should take when going online?

The most important first step is aligning with the right technology partner. Restaurant operators didn’t get into this industry to be marketers or technologists; they sought to create meaningful experiences with food.

Understanding restaurant operators don’t have the time or expertise to be restaurant website designers, my best advice is to seek out a technology partner who understands what the restaurant needs. While local designers or design agencies can be an effective means to get online, these solutions are often expensive and time-consuming. It is important for restaurants to find a partner that makes their website a reflection of their brand with elevated design, built-in marketing tools and the opportunity to drive revenue the same way they do in their brick and mortar. 

4. What is the biggest challenge for restaurants right now when it comes to digitization? 

As the world has evolved over the last year and a half, restaurants’ core purpose of providing a hospitable and memorable experience has remained constant. However, the technology that has been introduced to help them enter the digital world and make things easier, has in many cases proved far more complex and fragmented than it should be. 

Not surprisingly, this fragmentation and complexity has led to frustration and takes away from the restaurants ability to provide a seamless experience for their diners. It’s crucial for technology providers to be aware of this and work to provide end to end solutions to eliminate these breakage points. 

5. What are you most excited about when it comes to the impact of restaurant technology?

Restaurant technology has the power to help restaurant owners with their business and give diners an enhanced dining experience. When restaurants have the right technology partner, it changes the way diners interact with restaurants. They have more ways to experience a restaurant outside of the brick and mortar location. For restaurant owners, they have the opportunity to focus on better serving their communities and expanding their reach both locally and abroad. It also gives restaurants a more diversified stream of revenue, which helps them become stronger businesses.

6. What do you think the restaurant industry will look like in five years?

The pandemic catapulted the digital transformation of the restaurant industry and in five years, I see restaurants having a direct-to-diner experience with their customers, much like the transformation of retail going direct-to-consumers. Through restaurant technology innovation, restaurants will have the tools and data to build strong brand affinity among diners and tailor their customers’ experiences to make every diner feel like a regular.