Square's study unveils how retailers and restaurants deliver on customers' expectations

The company developed the Future of Restaurants and Future of Retail reports to provide a snapshot of what businesses are investing in and what’s working. For this, Square collaborated with Wakefield Research to survey restaurateurs, retailers, and consumers across the US. At the same time, Square spoke to businesses and industry experts to share how retailers and restaurateurs are facing challenges, embracing innovative solutions, and forging new paths forward in 2021.

The report found that restaurants and retailers are undertaking big changes to existing strategies and adopting new technologies to stay ahead of the curve. Retailers increasingly turn to online and social selling to continue serving their customers:

• 88% of retailers are now selling online;

• For retailers with one location that sells online, 66% of their revenue comes from online sales;

• 84% of retailers who sell online either already sell on social media or plan to in 2021;

• Among retailers selling on social media, 40% of their online revenue comes from social selling;

• 74% of retailers plan on using real-time inventory technology in 2021;

• 72% of consumers prefer delivery over pickup, but only 37% of retailers plan to offer same-day delivery.

Restaurants are also fundamentally reimagining the way they do business:

• 91% of restaurants have made, or plan to make, investments in kitchen automation technology;

• Restaurants expect 62% of their revenue to come from takeout or delivery in 2021;

• 58% of restaurants prefer to use their own app or website for delivery;

• Nearly half of restaurant owners or managers plan to continue offering digital menu access using URL or QR codes in 2021;

• 3 in 4 restaurants plan on offering contactless ordering and payment options across all channels, with 61% utilising contactless payments on-premise;

• 42% of restaurants plan to invest in customer loyalty programmes.