HOTREC Restaurant Booking Study (Preliminary Results)

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HOTREC Restaurant Booking Study (preliminary results)

Roland Schegg Institute of Tourism, School of Management & Tourism, HES-SO Valais/Wallis [email protected] AGENDA

• Aims of the Study • Methodological approaches • Overview on the European restaurant market • Global evolution of restaurant booking and delivery portals (desk research) • Website Analysis Germany and France • Results of the European restaurant and expert survey • Conclusions

HES-SO Valais-Wallis Page 2 Main Goals of the Study

Map and assess the current market situation concerning restaurant bookings and deliveries in Europe: • Relevant players on the restaurant booking platform market • Evolution of the online restaurant reservation portals • Identification of market shares of different direct and indirect distribution channels for advanced restaurant bookings • Market share of the individual restaurant booking platforms in the restaurant booking market • Common terms and conditions of key reservation platforms and evolution over past 5 years • Evolution of market of food deliveries from restaurants • Perception of an industry-led reservation platform for restaurants

HES-SO Valais-Wallis Page 3 AGENDA

HES-SO Valais-Wallis Page 4 Methodological approaches

Desk research Case studies Online survey Reports and studies on Germany and France among restaurants booking portals and Analysis of a representative Online survey covering delivery services sector. sample of restaurants most aims of the study (n=600) in each country. distributed via national On restaurant websites and restaurant associations Website websites of main booking since beginning of Profiling of major players portals -> assessment of September 2018. based on data from importance of third-party On October 12, we had website and annual services in restaurant 629 valid responses. reports. sector of two of the three Before summer, a similar survey biggest countries in terms was sent to sector experts (n=14). of restaurant sector (Italy HES-SO Valais-Wallis covered by indep. study). Page 5 AGENDA

HES-SO Valais-Wallis Page 6 Number of enterprises in the restaurants and mobile food service activities industry in the European Union (EU-28) from 2011 to 2015 1000000 915,685 930,300 900000 880,511 878,316 883,691 800000 700000 600000 500000 400000 300000

Number of enterprises 200000 100000 0 2011 2012 2013 2014 2015

HES-SO Valais-Wallis Source: Source: Eurostat ID 684198 & Statista 2018: Dossier «Restaurants and food Page 7 services in Europe« Number of enterprises in the restaurants and mobile food service activities industry in the European Union (EU-28) in 2015, by country

Number of enterprises 0 20000 40000 60000 80000 100000 120000 140000 160000 180000

France 165,004 Italy 144,959 Germany 131,845 United Kingdom 72,810 Spain 66,168 Czech Republic 47,336 Greece 44,201 Portugal 29,115 Belgium 28,606 Poland 28,378 Netherlands 27,722 Austria 27,677 Sweden 24,370 Hungary 16,264 Bulgaria 10,861

HES-SO Valais-Wallis Source: Source: Eurostat ID 684198 & Statista 2018: Dossier «Restaurants and food Page 8 services in Europe« AGENDA

HES-SO Valais-Wallis Page 9 Online food delivery revenue in Europe from 2016 to 2022

"Restaurant Delivery" focuses on Online Takeaway Restaurant Delivery online delivery services that serve 60000 meals to customers prepared by Restaurant Delivery has strongest growth partner restaurants which do not 50000 4,239.4 necessarily offer a delivery of their 3,690.6 48,884.5 food. Delivery provided by third- 44,206.5 party like Deliveroo. 40000 3,086.6 38,813.3 The "Online Takeaway" segment 2,456.9 30000 32,822.3 covers the delivery of meals using 1,843.9 aggregation portals such as Delivery 26,502 Hero or Just Eat but restaurants run 20000 1,295.6 20,260.9 their own delivery service.

14,585.1852.7 2018: Food delivery 28 billion $ 10000 Revenue in million U.S. dollars U.S. million in Revenue compared to 410 billion $ turnover of the food and beverage service in 0 2016 2017* 2018* 2019* 2020* 2021* 2022* Europe -> 7%

HES-SO Valais-Wallis Source: Statista (Digital Market Outlook) ID 696525 Page 10 Number of online food delivery users in Europe from 2016 to 2022, by category (in millions)

Online Takeaway Restaurant Delivery 250

200 51.5 2018: some 110 45.8 150 million users in 39.4 Europe 141.2 32.4 130.1 100 25.4 117.1 102.4 18.8 86.2 69.2 50 13.1 Number of users in in millions users of Number 52.4

0 2016 2017* 2018* 2019* 2020* 2021* 2022*

HES-SO Valais-Wallis Source: Statista (Digital Market Outlook) ID 696549 Page 11 Market valuation of new food delivery companies in Europe as of August 2016

Market valuation in million euros 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 Annual revenue Just Eat worldwide in Just Eat 4,620 2017: 623 million Euro. 82’300 restaurants on platform

Delivery Hero 2,740 Annual revenue Delivery Hero worldwide in 2017: 544 million Euro

Deliveroo 1,000

Takeaway.com 1,000

Annual revenue Food Panda worldwide Foodpanda 500 in 2016: 50.6 million Euro

HES-SO Valais-Wallis Source: Statista (Digital Market Outlook) ID 696525, Rocket Internet ID 696519 Page 12 AGENDA

HES-SO Valais-Wallis Page 13 Analysis of Booking Options on Restaurant Websites in Germany and France

HES-SO Valais-Wallis Page 14 Sample Size Details

Number of restaurants in top-20 cities in Germany 300 41% 250 200 Number of selected restaurants 150 16% in Germany and France 100 9% 9% 7% 7% 7% 50 3% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% 0

594 594 Germany 50% 50% France Number of restaurants in top-20 cities in France 300 47% 250 200 23% 150 100 7% 6% 6% 6% 4% 50 3% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 0

HES-SO Valais-Wallis Page 15 Having a Websites

500

450 82%

400 471 70% 350 402

300 Many restaurants without a website have a online presence via Facebook 250 Germany

200 France

150 30%

100 171 18% 50 102

0 No Yes

HES-SO Valais-Wallis Italian Survey 2017 (n=763): 81% of restaurants with a website. Page 16 Source: Osservatorio Innovazione Digitale nel Turismo Third-party Booking System on Restaurant Website Bookatable (by Michelin)

HES-SO Valais-Wallis Page 17 Booking Form

HES-SO Valais-Wallis Page 18 Booking Options Germany

Contact form; 15%

Resimo; 1% HORECA.DIGITAL; 1% Bookatable; 1%

Quandoo; 3%

Online PlatformsOther; 19% Bookatable ; 4% Guest can contact restaurant only Opentable; 7% by mail or telephone for a No 65% booking

19% of restaurant use a third-party booking platform on their website, only 15% have an HES-SO Valais-Wallis Page 19 own formalized table booking form on their website. Booking Options France

Contact form; 11%

Bookatable; 1% Personal tool; 1% guestonline; 2% Uniiti; 2%

Online PlatformsOther; 19% zenchef; 5%

La fourchette; 7% No 68%

HES-SO Valais-Wallis 19% of restaurant use an external booking platform, only 11% have an own formalized Page 20 table booking online form on their website. Delivery Services: Germany versus France

500 91% 450 429 91% 400 367 350 300 250 no 200 yes 150

100 9% 9% 42 50 35 0 Germany France One out of ten restaurants offers a delivery service on website HES-SO Valais-Wallis Page 21 Comment: The delivery services is stated on the website of the restaurant. Take-Away: Germany vs France

400 77% 364 350 77% 309 300

250

200 No Yes 150 23% 23% 107 93 100

0 Germany France

HES-SO Valais-Wallis Comment: Indicated on the website that food is available for take-away. Only Page 22 restaurants with a website are included. Analysis of the Presence of German and French Restaurants on Main Booking and Delivery Platforms

HES-SO Valais-Wallis Page 23 Online Booking on Tripadvisor

BookATable (Michelin)

HES-SO Valais-Wallis Page 24 Online Booking on TripAdvisor

600 95% 544 80% 500 458

400

300 Germany France 200 20% 115 100 5% 29 0 Yes No

HES-SO Valais-Wallis Page 25 Delivery on Tripadvisor

HES-SO Valais-Wallis Page 26 Delivery service on TripAdvisor

No 93%; 532 97% No 554 Lieferando 4%; 23

Deliveroo 2%; 13 3% Deliveroo 19

Lieferheld 1%; 5

0 200 400 600 0 100 200 300 400 500 600

HES-SO Valais-Wallis Delivery service can be ordred in 7% of restaurants in Germany and 3% of Page 27 restaurants in France on TripAdvisor Presence of restaurants on booking platforms

Comment: HES-SO Valais-Wallis – Restaurant on the official page of a booking platform Page 28 – The restaurant needs to be «bookable» on the site Presence of Restaurants on Booking Platforms

100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 469 529 50% 542 555 50% 548 40% 40% 30% 30% 20% 20% 10% 10% 104 44 31 0% 18 0% 25 Opentable Bookatable Quandoo Bookatable La Fourchette Yes No Yes No

HES-SO Valais-Wallis Comment: The sample does not include restaurants that are closed. Restaurants that don’t have Page 29 a website are, however, included. AGENDA

HES-SO Valais-Wallis Page 30 Restaurant Survey: Responses by Country

0 50 100 150 200 250 300 observations France 283 Sweden 81 Finland 75 Country-specific report possible when n>50 Denmark 47 Austria 42 Czech Republic 29 Germany 23 Belgium 13 Estonia 9 Switzerland 7 Turkey 6 Malta 6 Hungary 4 United Kingdom 1 Italy 1 Total from online survey (october 12): n=629 Ireland 1 Comment: Similar survey in 2017 in Italy (n=763) Netherlands 1

HES-SO Valais-Wallis Page 31 Percentage of guests in restaurant in 2017 who booked a seat in advance

75 and more% 88

From 50 to 74% 69 Mean value: 45% Expert estimation From 25 to 49% 51 (n=14): 57%

From 5 to 24% 94

Less than 5% 22 n=324

0 10 20 30 40 50 60 70 80 90 100

observations

HES-SO Valais-Wallis Page 32 Distribution channels for advanced restaurant bookings

0 20 40 60 80 %

Direct - Phone 64.6

Direct - Email 12.5 Direct bookings: 88.3% Direct - via reservation system on website of restaurant… 6.1 (same as expert estimation!) Direct - Booking form on own website (manual handling) 4.4

Direct - via mobile app of restaurant 0.5

Direct - Mail / fax 0.3

Restaurant online booking platforms (e.g. La Fourchette/The… 5.9 Expert estimation (n=14): 7.3%.

Other distribution channels 3.2 Facebook, Walk-in etc.

Reservations of tour operators for groups or business partners… 2.5

Coupon websites (e.g. Groupon) 0.1 n=535

HES-SO Valais-Wallis Italian Survey 2017 (n=611): 70% of restaurants with offline bookings (telephone). Direct bookings Page 33 91% and online platforms 3%. Source: Osservatorio Innovazione Digitale nel Turismo Evolution of reservations via restaurant online booking platforms over the past 3 years

0 50 100 150 200 250 300 350 400 observations

Strongly increasing 81 70% of restaurants working with the portals see a slight to strong increase.

Expert evaluation (n=13): 77% slightly to strongly increasing Slightly increasing 74

Stable 58

Slightly decreasing 2

Strongly decreasing 6

Do not work with them 374

n=595 HES-SO Valais-Wallis Page 34 Perception on an industry-led restaurant booking platform

No need for that 175

Neutral 132

Responding restaurants (n=329): 11% very In favour 118 much in favour, 25% in favour and 37% do not see need.

Experts (n=13): 61% see no need, 39% in Very much in favour 54 favour.

Non response 150

0 20 40 60 80 100 120 140 160 180 200

HES-SO Valais-Wallis Page 37 Work with food delivery service

Yes, we work with an external service (e.g. 30 UberEats, Deliveroo, etc.)

Yes, we have our own "take away"/delivery service 13

No 515

0 100 200 300 400 500 600

HES-SO Valais-Wallis Responding restaurants (n=557): Only 7% of restaurants work with delivery services (5% with Page 39 external services) Percentage of turnover in 2017 generated by take-away and food delivery services

75% and more 4

From 50 to 74% 2

From 25 to 49% 17

From 5 to 24% 80 Mean value 7.5%, median 2%

Less than 5% 154

0 20 40 60 80 100 120 140 160 180

HES-SO Valais-Wallis Responding restaurants (n=257): Page 40 AGENDA

HES-SO Valais-Wallis Page 41 Preliminary Conclusions (I) Evolution of the online restaurant reservation portals & market shares of different direct and indirect distribution channels for advanced restaurant bookings • 45% of guests in restaurant in 2017 booked a seat in advance • 88% of advanced bookings through direct channels • 6% of advanced bookings through third-party portals such as LaFourchette/TheFork • 70% of restaurants working with these portals have seen a slight to strong increase in bookings over the past 3 years • Nearly 20% of restaurants offer third-party booking options on their website and only 11% have an own reservation system (70% rely on telephone, mail etc.)

HES-SO Valais-Wallis Page 42 Preliminary Conclusions (II) Evolution of the online restaurant reservation portals & market shares of different direct and indirect distribution channels for advanced restaurant bookings • TripAdvisor: 5% of restaurants in Germany and 20% in France can be booked online on TripAdvisor via third-party portals • Germany: 8% of restaurants can be booked on OpenTable, 5% on Bookatable (Michelin) and 3% on Quandoo • France: 4% of restaurants can be booked on OpenTable and 18% on La Fourchette

• Only minor support for an industry-led restaurant booking portal (36% in favour, 28% neutral, 37% against)

HES-SO Valais-Wallis Page 43 Preliminary Conclusions (III)

Market share of the individual restaurant booking platforms in the restaurant booking market • Empirical data do not allow to estimate market shares (only few and incomplete data) • Relevant players on the restaurant booking platform market

Meta-search player Booking Holding

HES-SO Valais-Wallis Page 44 Preliminary Conclusions (IV)

Evolution of the online restaurant booking platforms and food deliveries market • No study found yet on the evolution of the restaurant booking platform market. • The food delivery market has an estimated 28 billion $ turnover in Europe in 2018 compared to 410 billion $ for food and beverage service in Europe -> 7%

• Only 7% of restaurants in survey work with food delivery services for a median turnover of 2% (compared to overall revenue) • Case study Germany and France: 10% of restaurants offer a delivery service on own website and 23% a take-away service. • Delivery service can be ordered in 7% of restaurants in Germany and 3% of restaurants in France on TripAdvisor

HES-SO Valais-Wallis Page 45 Preliminary Conclusions (V)

• Restaurant booking portals and online delivery services are still in an early stage • But given change in consumer behavior (milenials, generation Z, etc) and technology evolution (penetration of mobile technology), the growth potential of this players seem to be big

• Behind many of the actors in this market (La Fourchette -> TripAdvisor, OpenTable -> Booking Holding) we can find the global travel players

HES-SO Valais-Wallis Page 46 Prof. Roland Schegg University of Applied Sciences and Arts of Western Switzerland Valais (HES-SO Valais)

School of Management & Tourism Institute of Tourism (ITO) TechnoPôle 3 CH-3960 Sierre/Siders, Switzerland Tel: +41 (0)27 606 90 83 Mail: [email protected] Twitter: @RolandSchegg LinkedIn: ch.linkedin.com/in/rolandschegg/

School: www.hevs.ch Institute of tourism: https://www.hevs.ch/fr/rad-instituts/institut-tourisme eTourism news: www.etourism-monitor.ch Tourism Observatory: www.tourobs.ch

Bachelor of Science HES-SO in Tourism in German, French and English http://tourism.hevs.ch EMBA en innovation touristique: www.innovation-touristique.com

HES-SO Valais-Wallis Page 47 Merci!