3 Reasons Why the Small Restaurant Comeback Looks Real

As independent restaurants continue to recover from the devastating blow dealt by the pandemic, the future is beginning to look a little brighter.

By the Numbers

Research from PYMNTS’ study “The Main Street Index Q3 2022: The Post-Pandemic State Of Play For Main Street Businesses,” which draws on data from the Quarterly Census of Employment and Wages, econometric analysis and modeling techniques to determine the overall health of Main Street small and medium-sized businesses (SMBs), finds the eating and drinking establishments’ index has grown 1.2% last year on a CAGR basis. While this figure is modest, it is certainly a step in the right direction, considering all the economic headwinds the industry faces.

Read the report: The Main Street Index Q3 2022: The Post-Pandemic State Of Play For Main Street Businesses

A Word From Insiders

As independent restaurants look to continue to grow, digital technologies can be key to meeting consumers’ increasing expectations of service and efficiency.

“When [restaurants] were forced to close their doors to in-person business, many of them quickly developed new strategies to service their communities without missing a beat,” Colleen Taylor, president of U.S. Merchant Services at American Express, told PYMNTS in an interview.

Taylor noted that, amid ongoing changes in consumers’ behavior, independent restaurants “need to be tech savvy and willing to leverage technology.”

Indeed, independents lag behind major brands when it comes to tech offerings.

Research from the June edition of PYMNTS’ Digital Divide study, “The Digital Divide: Technology, Customer Service And Innovation In The Restaurant Industry,” which draws from a survey of nearly 2,500 U.S. consumers, finds that 56% of chain restaurants offer mobile order-ahead options. In contrast, only 31% of independents do the same. Similarly, 63% of chain restaurants offer curbside pickup, compared to just 40% of independents, and 44% of chains have loyalty programs, compared to just 20% of independents.

Get the report: The Digital Divide: Technology, Customer Service And Innovation In The Restaurant Industry