SAN DIEGO--(BUSINESS WIRE)--Consistency is key for delivering on the demands for a phygital restaurant experience, according to the second annual 2024 Phygital Index Report released today by Tillster, a leading global provider of unified commerce solutions for restaurant brands. Tillster’s sixth annual consumer index uncovers what consumers are seeking from their dining experiences when it comes to digital ordering, self-service kiosks, delivery, pickup, coupons, loyalty programs, and more.
The survey of more than 1,000 U.S.-based quick-service and fast-casual diners uncovers consumers' expectations for digital ordering in the restaurant and off-premise. Demand for customizable and personalized experiences continues to grow, and this year diners continue to set a high bar for expectations when it comes to consistency across the digital and physical experience. 89% of diners say inconsistent experiences across locations of the same QSR chain bothers them, and these inconsistent experiences make 57% of diners less likely to go back. Nearly half of QSR customers have experienced digital tools not working together the way they should be which leaves the vast majority of them (93%) frustrated. However, this creates an opportunity for restaurant brands to close the gap and benefit from improved consistency in the experience provided across physical and digital engagements with customers which can ultimately drive higher frequency, deeper loyalty and larger check size.
To help brands create more seamless, personalized and customizable phygital experiences, the Phygital Index Report uncovers a range of pain points and solutions, including:
- Self-service kiosk adoption is growing, helping operators navigate labor and cost challenges. 57% of those who use kiosks wish restaurants had more self-service kiosks available, compared to 36% of diners who said the same last year. Kiosks are gaining traction for the convenience they offer customers and for the way they can help offset labor costs for operators.
- The third-party bubble burst. Diners have favored third-party platforms for the variety of choices, but the advantage is waning. Today, 17% of diners expect to reduce their use of third-party websites/apps in favor of restaurant-specific websites/apps in the coming year. There’s an opportunity to shift focus to mobile apps and websites, where 47% of diners are eager to see more exclusive offers and discounts. With the shift, operators gain the opportunity to engage and retain customers in new ways with first party data and direct connections.
- Pickup picks up, but parking is a problem. 89% of diners who have used curbside pickup say they would be more likely to visit a QSR that offers curbside pickup in the coming year (up from 69% last year). While diners demand more curbside, logistical challenges are a pain point. Over half of customers (55%) who ordered pickup in the last three months have had issues with parking when collecting their order, presenting a clear focus area for operators.
- Personalization has become the expectation. More than half (58%) of diners are likely to recommend a QSR based on a positive personalized ordering experience. In fact, 33% of diners have even decided not to order from a QSR because the ordering experience was not personalized to their preferences — up from 21% who said so in 2023. There's an opportunity for restaurant operators to uplevel personalization in the ordering process.
“As restaurants continue to adjust their digital transformation strategies, it’s never been more important to build synergy between the digital and physical tools and components of the QSR dining experience,” said Perse Faily, CEO of Tillster. “It’s clear from our Phygital Index Report for 2024 that today’s diners want interconnected, yet tailored and personalized experiences. We initiated this report to uncover consumer preferences to help brands and operators deepen their understanding of the tools and how they can create more seamless, meaningful and valuable experiences for customers and boost profitability.”
Tillster Chief Marketing Officer Hope Neiman will host a LinkedIn Live event “Transform Or Fail: Understanding Digital Shifts For QSR Survival” on Wednesday, April 17th at 12 pm CST. Those interested in staying ahead of the curve in the world of phygital experiences can register here to get an inside look at the findings of the 2024 Phygital Index Report.
To see the complete findings from Tillster’s Phygital Index report, please visit https://www.tillster.com/blog/phygital-index-report-q2-2024.
About Tillster
Tillster is a leading global provider of unified commerce solutions for QSR and fast-casual brands. With trusted solutions for digital ordering, delivery, couponing and loyalty solutions, across web, app, kiosk and call center platforms, the company empowers restaurant brands looking to increase revenue, achieve operational efficiencies, and better engage guests. Powering millions of orders per year across 40 thousand+ locations globally, Tillster offers the added dimension of integrated marketing and data mining, including a proprietary AI and machine-learning tool. With teams in North America, Latin America, EMEA and APAC, Tillster serves more than 100 global and regional brands, including Burger King, Baskin-Robbins, Godfather’s Pizza, Jollibee and Pollo Campero. For more information, please visit http://www.tillster.com.
