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on-premises dining

September 23, 2020

NPD: Restaurant Digital Orders Declined in August

Digital orders at restaurants dropped 17 percent in August, down from 20 percent in April of this year, according to NPD CREST’s latest monthly update.

While that’s not an enormous drop, it does suggest many people still prefer eating at restaurants to ordering ahead and picking the food up or having it delivered.

The slight downturn in digital sales coincides with the fact that in many cities, some form of dine-in service has been available for a few months now. “As the summer progressed and mandated restrictions were lifted, an increasing number of consumers became more comfortable dining out based on the safety protocols restaurants put in place,” says author and NPD food industry advisor David Portalatin.

Along those lines, NPD notes that on-premises service, whether in the dining room or with outdoor seating, have “improved every month since April” and that August trends reflect a restaurant industry operating with far fewer restrictions than were in place at the height of the pandemic.

Not that it hasn’t been a tough road for most restaurants over the last six months. Dine-in service may be available, but it’s with capacity restrictions almost everywhere. Meanwhile, many restaurant owners still struggle to pay rent, and there are questions around the fate of dine-in service once the weather grows cold enough to make outdoor dining an unlikely choice for many consumers (though creative solutions to this problem are emerging).

Some states are just now about to increase their capacity numbers inside restaurants, while others are on the cusp of reopening indoor dining for the first time since shutdowns began. At the same time, reports of rising COVID-19 cases are multiplying. How the pandemic’s trajectory travels for the next few months will most certainly impact what on-premises dining sales look like with NPD CREST’s next report. If extreme measures have to be taken again, digital orders could experience another surge.

August 27, 2020

Front-of-House Igloo? Chicago Asks Residents to Redesign the Outdoor Dining Experience for Winter

We’ve said it multiple times in the last couple of weeks: winter is coming for outdoor dining. And when it arrives, restaurants may be even more limited as to how they can serve dine-in customers in the midst of a pandemic and reduced capacity mandates for the dining room.

Chicago, a city that’s no stranger to harsh winters, is preemptively dealing with this situation by challenging residents to redesign the outdoor restaurant experience. Dubbed the Winter Design Challenge and done in partnership with IDEO, BMO Harris Bank, and the Illinois Restaurant Association, the contest is looking for outdoor dining ideas that can adhere to safety restrictions around COVID-19 while still allowing restaurant customers to eat outdoors.

Participants can submit ideas through September 7. Chicago Mayor Lori Lightfoot’s office told NBC Chicago that winners will receive $5,000 each and “opportunities to start their idea at restaurants and bars around the city.”

Sam Toia, president and CEO of the Illinois Restaurant Association, added that, “We need out-of-the-box thinking to address the hardship facing our industry.”

We’ve seen some of that outside-the-box thinking already in the restaurant industry, from outdoor self-service kiosks to greenhouse-like buildings that enclose individual tables. But winter weather provides a whole new set of challenges that a few heat lamps may not be enough to solve. 

A panel of local judges will pick one winner from the following categories: outdoor structures; indoor-adjacent spaces; and cultural change/other ideas.

Ideas are already pouring in, including heated tent rentals, blankets, solar-powered pergolas, and actual igloos. There are also several suggestions to simply not open, which underscores how divided the general public remains about eating in restaurants in the time of a pandemic.

Submissions will be accepted through September 7 at 11:30 PST. All suggestions should address on-premises dining, not delivery or takeout.

Whatever winning solutions emerge from this could provide a blueprint for other cities around the country when it comes to addressing the upcoming winter. Chicago may have a reputation for harsh weather, but it’s hardly the only city in the U.S. to endure snow, ice, and sub-zero temperature. It wouldn’t be surprising if more cities launch their own challenges in the coming weeks in a collective effort to pull the restaurant industry through the changes and prevent even more from having to permanently close their doors.

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