Manufacturer brand loyalty is under threat from restaurants sourcing foodservice equipment online.
A recent survey of restaurant owners and managers found that 85% of respondents reported an increase in comparison shopping and just 15% of respondents said they remain loyal to one restaurant supply store.
Owners and managers are optimistic things will return to normal as vaccinations increase, and two thirds of respondents anticipate they’ll receive funds from the government’s restaurant revitalization plan, according to the study carried out by B2B e-commerce payments solutions Credit Key.
John Tomich, co-founder and CEO of Credit Key, said: “We learned that restaurants plan to make significant equipment purchases in the coming months. What’s interesting is these buyers place more importance in how they pay for equipment than where they purchase that equipment.”
Notably, 70%of these restaurants plan to dedicate their relief funds to purchasing equipment, furniture and supplies in 2021.
At the same time, a majority of respondents still harbor concerns about Covid-19 and its ability to disrupt their business.
“There’s optimism on the buyers’ side, but they’re willing to leave vendor relationships behind in favor of better pricing and payment plans that put less stress on their cash flow,” added Tomich. “A safeguard for sellers is to provide buyers with varied payment options at checkout including the increasingly popular buy-now-pay-later solution.”
Among the findings from the survey:
– 90% of restaurant buyers said it’s important or highly important to be provided a variety of payment options at checkout.
– 92% of respondents said they intend to purchase equipment online more frequently going forward.
-80% of restaurant owners and managers forecast a meaningful increase in business, but this same 80 percent says they’re concerned that Covid-19 might present disruptions in the future.
-63% of buyers are interested in buy-now-pay-later plans.
Of those interested in BNPL, 28% of respondents prefer 90 day terms, 46% of respondents prefer six months terms, and 26% of respondents prefer 12 month terms.