2024 State of The UK Hospitality Industry: Data That Brings Innovation

From global shutdowns and economic downturns to severe staff shortages and disruptions in food supply chains-it’s fair to say that the hospitality industry has faced an outpour of difficulties over the past four years. But, fuelled by resilience and adaptability, restaurants have proven possibilities lie within the challenges, and have met adversity with innovative solutions. 

Lightspeed’s latest consumer research, surveying 7,500 respondents globally-1,000 of whom are in the UK-reveals valuable insights into the evolving shifts in customer behaviour, offering guidance for restaurants and hospitality businesses to shape up their dining dynamics. 

The research covered four main areas, examining customer satisfaction with regard to inflation, tipping, technology, and solo dining over the past 6 months.

Whilst the obvious is true, the survey shows diners are eating out less and looking to get the most out of their money.  It’s certainly not all doom and gloom for restaurateurs. These latest insights present great opportunities for restaurants to take advantage of these trends and bring more success in the ever-changing hospitality landscape. 

In this blog, we’ll explore some of the top highlights from Lightspeed’s research, as well as provide insight into the most effective ways restaurants can use this data to innovate their customer service. We’ll be covering:

• How to tailor your menu to cost-conscious customers
• QR code ordering: The customer pushback 
• Leveraging technology to meet customer needs
• The promising effects of promotions and value deals 

How to tailor your menu to cost-conscious customers

As the UK finds itself in an era of economic inflation and uncertainty, the behaviour of diners changes too. When asked about their current dining habits, 57% of respondents reported dining out less in the past six months. Among them, 45% dine out once or twice a month, while the second largest group, 28%, dine out even less frequently.

And while restaurants across the UK are feeling the effects of customers having to tighten their purse strings, these statistics aren’t entirely bleak. As the survey continues it asked respondents what courses they order when dining out in a sit-down restaurant. Whilst most people answered the generally obvious main course option, it shows that just under half, 48%, will also go on to order dessert, whilst a lot less of people, 28%, order appetisers. 

Understanding what tempts customers into spending their money is invaluable when it comes to creating an innovative menu. Consider impressing your guests with a dessert special that is both local and seasonal, tapping into their preference for the sweeter after dinner treats. Enhance your dessert menu further with creative presentations and combinations that can elevate your guests’ dining experience. It doesn’t have to be anything beyond your kitchen’s capabilities—just a memorable dish that keeps diners thinking about your restaurant long after their meal.

What’s more, seeing many diners choose desserts over appetisers can give chefs a chance to improve their starters and small plates selection. Adding something out of the ordinary or especially tempting to your menu can encourage customers to choose that extra plate and encourage a boost in average spend.

Data like this offers huge insight into the general behaviour of UK diners, but for each individual restaurant, assessing the needs and preferences of your customers can still sometimes feel like a guessing game. With Lightspeed’s Advanced Insights, speculation is eliminated. The integrated product allows restaurant management teams to clearly see a detailed breakdown of which dishes are performing best to showcase them more prominently, as well as which ones are less in demand. With this, you can upsell your most popular dishes and remove or reduce orders of less popular items, leading to better inventory management and less waste on potentially unused produce. 

QR Ordering: The customer pushback

While the dishes featured on your menu significantly influence the customer journey, Lightspeed’s research highlights that menu format is just as important. It plays a vital role in influencing how customers perceive and feel satisfied from the moment they first encounter your restaurant—whether this is online or upon arrival. So, the presentation and format of your menu are great factors to consider.

Lightspeed’s 2024 research took this into account, exploring the impact of integrated technology on restaurant service. Diners were asked about their preferences between QR code menus and physical menus, as well as how they respond when prompted by a server to use a QR code menu. The results clearly indicate a strong preference for physical menus, with 85% of respondents expressing a preference in casual dining settings and 93% expecting them in fine-dining establishments. Going further, the data reveals that 35% of respondents specifically request a physical menu when offered a QR code initially by their server.

Restaurant owners should consider their own operational needs and order of service in regard to QR code ordering. If your restaurant can operate just as well, and your aim is to provide customers with a more intimate dining experience, the data suggests that bringing in physical menus as the main way of ordering would please guests more than being prompted with a QR code. But, this is all relative to the individual needs and preferences of your restaurant. 

When considering QR menus beyond the past 6 months, many restaurants and hospitality businesses had adopted QR ordering to safely serve customers and protect staff health during the COVID-19 pandemic. Since its introduction, QR technology has enabled restaurants, particularly casual dining venues, to streamline service operations and focus on operational efficiency beyond traditional table service, minimising human error in the process.

What’s more, Lightspeed Restaurant offers smoothly integrated tech stacks with intuitive tools like Storekit. The integration allows guests to order from their seat with a digital menu and removes the need to queue, it also boosts staff productivity with contactless ordering and payment, to make the entire ordering process seamless. It also enables staff to modify menus to reflect real-time updates and changes, something which is much harder to do with physical menu ordering. So beyond the research, integrations like Storekit are an ideal solution for restaurants with large multiple spaces or are casual dining spots. 

So, while the data clearly indicates a strong preference among diners for physical menus, it’s crucial to apply this insight to your restaurant’s unique setting and service style. If you’re uncertain about customer preferences, but believe QR code ordering enhances your service efficiency, consider having a backup of well-presented physical menus to offer guests who seem disgruntled, confused or anti-QR ordering. This can mean better customer satisfaction right from the start of their dining experience.

Leveraging technology to meet customer needs

Understanding customers’ attitudes towards QR code ordering perfectly leads us on to exploring how other elements of technology can enhance your guests’ experience. 

The survey asked diners if they use online booking systems to reserve tables at sit-down restaurants. And, the results showed a strong preference for online booking, with 86% indicating they use it sometimes, often, or always. This data emphasises the convenience and reliability that online booking systems offer, allowing diners to secure reservations seamlessly without phone calls or in-person visits. 

Understanding this preference is crucial for restaurants aiming to enhance customer satisfaction. By integrating reliable online booking systems, restaurants can streamline operations, reduce wait times, and provide a smoother dining experience. This not only meets the expectations of modern diners but also increases the likelihood of repeat business.

Lightspeed’s integration with TheFork offers the perfect solution for restaurants looking to upgrade their reservation system. Beyond supplying customers with an easy online booking platform, it integrates seamlessly with your Lightspeed ePOS to create smooth seating plans as well as record orders for access to guest spending history. Integrating intuitive reservations platforms, like TheFork, with your ePOS provides a win-win situation for your restaurant and your guests. The integration benefits your order of service by boosting operational efficiency, whilst Lightspeed’s latest data provides assurance that diners enjoy the ease of booking restaurants online, hassle-free. 

Whilst on this note, it’s important to be aware that having an accessible website and an updated online presence is crucial for restaurants using online reservations. Potential customers often discover booking platforms through social media or search engines. And so, a well-designed, easy-to-navigate website that is regularly updated not only boosts visibility but it allows potential diners to quickly find important information like menus, hours, and reservation options. 

Check out our latest blog on maximising the potential of online platforms and social media marketing for your restaurant.

The promising effects of promotions and value deals

Lightspeed’s research revealed positive insights regarding diners’ attitudes towards promotional deals and loyalty programs. The results clearly indicate that as diners look to save money whilst still enjoying dining out, they find coupons, value deals, and promotions particularly appealing. 

The survey asked respondents whether, over the last 6 months, they had taken advantage of restaurant promotions to enhance their dining experiences and save money. The findings revealed that 36% of respondents opted for set menus or value meal deals, 27% used deals and coupons, and 24% made use of restaurant loyalty programmes and happy hour specials.

Happy hours and set menus have long been familiar offerings in the restaurant industry. However, Lightspeed’s recent data emphasises that diners are still keen to eat out while being mindful of their spending. Therefore, restaurants that offer deals like prix fixe meals and set menus may see better footfall through their doors compared to those that do not offer such value.

Based on the data collected, it’s also important to consider the impact of happy hours on increasing customer spending average. When asked about cost-saving measures during dining out at sit-down restaurants, 20% mentioned no longer ordering alcohol. Combining this data with the 24% who actively participate in happy hours suggests that offering deals on alcoholic beverages, such as happy hour specials, 2-for-1 offers, or discounted drinks, could prove to be a strategic move for your restaurant, to encourage higher spending on alcoholic drinks. 

The data also suggests that loyalty programmes serve as a strong incentive for customers to spend at your restaurant. When diners know they can earn rewards or receive discounts for visiting and spending at restaurants, it can encourage them to increase their spending and also motivate them to recommend your restaurant to others.

Creating a user-friendly loyalty programme is effortless with Lightspeed’s integration with 5loyalty. 5loyalty easily allows customers to gain and use loyalty points, stamps, and personalised rewards directly from Lightspeed’s point-of-sale system. Customers can access these points when placing orders, making loyalty management seamless and efficient for your restaurant operations. With this, your customer satisfaction rate can increase and should entice customers to return and spend again. 

Key takeaways

In conclusion, Lightspeed’s 2024 State of UK Hospitality research underscores the need for restaurants to innovate and evolve in order to adapt to the drastic changes in customer behaviour and preferences.

By tailoring menus to appeal to cost-conscious diners, addressing preferences in QR code versus physical menu usage, leveraging technology for streamlined operations, and enhancing customer engagement through strategic promotions, restaurants can better survive and thrive in this competitive environment.

Overall, as the industry continues to change, these insights serve as a compass for restaurants wanting to enhance their service, boost customer satisfaction, and drive growth. Using this data as a positive starting point, it’s also important to continue adapting your restaurant to suit the specific needs of your customers, your service and your setting.