More than two years after the initial COVID-19 lockdown measures, many small business restaurants are getting back to business as usual with in-person dining in full swing. And according to a new survey by NEXT Insurance, consumers are eager to cast their delivery apps aside in support of local “Main Street” restaurants.
In fact, data from the survey shows that 64 percent of consumers have gone out of their way to support local restaurants over larger chain restaurants during the pandemic. Additionally, 29 percent of consumers anticipate reducing their usage of delivery apps with COVID-19 restrictions lessening. Overall, the findings shine a light on the resilience of local restaurateurs and reveal a positive future for local restaurants.
While the pandemic disproportionately impacted small businesses, with roughly 80,000 restaurants having temporarily or permanently closed over the past two years, local restaurants are beginning to see the light at the end of the tunnel. In the (roughly) last 90 days, 71 percent of consumers had been out to eat and were seated inside at a restaurant, while 32 percent had been out to eat and were seated outside, according to the NEXT Insurance survey.
For the study, NEXT surveyed 1,000 consumers across the United States to understand how their dining habits may have changed since the start of the pandemic and what that signals for local small business restaurants.
Key Survey Results
Some of the important highlights from the study include:
- Dining out is back in full swing (despite inflation), with consumers eager to try new restaurants. In the last (roughly) 90 days, 27 percent of respondents have been to a local non-chain restaurant in their community.
- In-person dining is taking over at-home takeout as COVID-19 restrictions decline: A total of 22 percent of respondents have eaten out more in the past 30 days, and 57 percent of respondents ate out about the same; meanwhile, 29 percent of respondents expect to decrease their delivery app usage in coming months.
- More than half of respondents – 54 percent – had a favorite restaurant close during the pandemic, but it doesn't seem to be slowing them down: A total of 94 percent of respondents already have or plan to try new local restaurants in their communities.
- When dining out, people still splurge on alcoholic beverages (46 percent), desserts (38 percent), and still make sure to tip their servers well (47 percent).
- Consumer attitudes go big for small business restaurants. A total of 72 percent of respondents have spent money on local restaurants, or plan to do so not out of necessity but to simply support a small business. 65 percent of respondents feel better about buying from a local restaurant, and 71 percent of respondents choose to dine out locally because the food quality and ingredients are better.
- Main street restaurants may have adopted new technology, as a result of the pandemic, but customers remain focused on food quality. While restaurants across the country adopted touchless experiences during the pandemic to ease customer worries, 51 percent of respondents said their local restaurants adoption of new technologies did not increase their likelihood of dining there. Instead, consumers cited the overall ambiance (69 percent) as more impactful on the overall experience.
- 39 percent of respondents didn't care either way if QR codes became permanent fixtures at their local restaurants.
Proactively Supporting Local Dining Establishments
"Small business restaurants aren't just a central part of our local economies - they're part of what makes a community feel connected to one another," said Suzanne DuFore, director of research at NEXT Insurance. “This survey from NEXT Insurance highlights a positive trend in consumer behavior – people's willingness to proactively support local dining establishments. As many Americans are feeling more comfortable returning to daily activities, we're excited to see the ripple effects it will have on small businesses all around the country.”
The recent survey was designed in-house by NEXT, which has helped more than 300,000 business owners. The company partnered with Rep Data to recruit a nationally representative survey of 1,053 consumers.
For more details on the NEXT Insurance survey, click here.
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