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BizReport : Mobile Marketing : October 09, 2014

Lack of mobile tech costing restaurants millions per year in revenue

Restaurants that fail to implement technology to speed up bill payment, personalize service and increase loyalty are missing out on millions per year in revenue, according to new research commissioned by Edelman Berland and released by Velocity.

by Helen Leggatt

Restaurants in the U.K. are missing out on a whopping £5.6 billion (US$9 billion) per year in revenue because they are not implementing technology to make life easier for their customers.

According to the study by restaurant app firm Velocity, 43% of consumers said they would eat out more often if a restaurant payment app was available and, of these, half said they would eat out at least once more every week.

Mobile payment technology would decrease the time diners wait to settle the bill. Currently, diners in the U.K. have to wait, on average, 11 minutes to pay for their meal. Such inefficient service is a downside to dining out, said 76% of those surveyed, and such inefficiencies have a more negative effect on the dining experience than receiving an incorrect food order (48%). Furthermore, almost 6 in 10 (59%) said speedy service was more important than a diverse menu (49%) and ambiance (23%).

"New technology is increasingly empowering consumers to take control, enhancing our experiences with immediate gratification. We are already seeing this in the transport, hotel and home entertainment sectors... but these advances aren't happening in a meaningful way in the UK dining sector yet," said Alex Macdonald, Velocity's co-founder.

"These technological advances have the potential to transform the dining sector resulting in quicker bill payment, personalized service and increased customer loyalty and sales, a rare win-win for both consumers and restaurants".

While 64% of those surveyed would use restaurant loyalty app schemes if conveniently bundled into one app, just 20% currently use any type of restaurant loyalty app.

Image via Shutterstock

Tags: app, loyalty, mobile, payment, restaurant

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