Gazdasági Ismeretek | Marketing » Roland Schegg - HOTREC Restaurant Booking Study

Source: http://www.doksinet HOTREC Restaurant Booking Study (preliminary results) Roland Schegg Institute of Tourism, School of Management & Tourism, HES-SO Valais/Wallis roland.schegg@hevsch Source: http://www.doksinet 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 Source: http://www.doksinet 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 Source: http://www.doksinet 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 4 Source: http://www.doksinet Methodological approaches Desk research Reports and studies on booking portals and delivery services sector. Website Profiling of major players based on data from website and annual reports. HES-SO Valais-Wallis Page 5 Case studies Germany and France Online survey among restaurants

Analysis of a representative sample of restaurants (n=600) in each country. On restaurant websites and websites of main booking portals -> assessment of importance of third-party services in restaurant sector of two of the three biggest countries in terms of restaurant sector (Italy Online survey covering most aims of the study distributed via national restaurant associations since beginning of September 2018. On October 12, we had 629 valid responses. covered by indep. study) Before summer, a similar survey was sent to sector experts (n=14). Source: http://www.doksinet 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 6 Source: http://www.doksinet Number of enterprises in the restaurants and mobile

food service activities industry in the European Union (EU-28) from 2011 to 2015 1000000 Number of enterprises 900000 880,511 878,316 883,691 2011 2012 2013 915,685 930,300 2014 2015 800000 700000 600000 500000 400000 300000 200000 100000 0 HES-SO Valais-Wallis Page 7 Source: Source: Eurostat ID 684198 & Statista 2018: Dossier «Restaurants and food services in Europe« Source: http://www.doksinet Number of enterprises in the restaurants and mobile food service activities industry in the European Union (EU-28) in 2015, by country 0 France Italy Germany United Kingdom Spain Czech Republic Greece Portugal Belgium Poland Netherlands Austria Sweden Hungary Bulgaria 20000 140000 160000 180000 165,004 144,959 131,845 72,810 66,168 47,336 44,201 29,115 28,606 28,378 27,722 27,677 24,370 16,264 10,861 HES-SO Valais-Wallis Page 8 40000 Number of enterprises 60000 80000 100000 120000 Source: Source: Eurostat ID 684198 & Statista 2018: Dossier «Restaurants and

food services in Europe« Source: http://www.doksinet 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 Discussion and synthesis of results Conclusions HES-SO Valais-Wallis Page 9 Source: http://www.doksinet 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 partner restaurants which do not Revenue in million U.S dollars Restaurant Delivery has strongest growth 50000 3,690.6 4,239.4 necessarily offer a delivery of their 48,884.5 food. Delivery provided by third- 44,206.5 40000 party like Deliveroo. 3,086.6 38,813.3 The "Online Takeaway" segment 2,456.9

32,822.3 30000 covers the delivery of meals using aggregation portals such as Delivery 1,843.9 26,502 Hero or Just Eat but restaurants run 20000 10000 1,295.6 20,260.9 their own delivery service. 852.7 14,585.1 2018: Food delivery 28 billion $ compared to 410 billion $ turnover of the food and beverage service in 0 2016 2017* HES-SO Valais-Wallis Page 10 2018* 2019* 2020* 2021* Source: Statista (Digital Market Outlook) ID 696525 2022* Europe -> 7% Source: http://www.doksinet Number of online food delivery users in Europe from 2016 to 2022, by category (in millions) Online Takeaway Restaurant Delivery Number of users in millions 250 200 51.5 2018: some 110 150 million users in Europe 100 50 45.8 25.4 13.1 52.4 18.8 69.2 86.2 2017* 2018* 39.4 32.4 130.1 141.2 117.1 102.4 0 2016 HES-SO Valais-Wallis Page 11 2019* 2020* Source: Statista (Digital Market Outlook) ID 696549 2021* 2022* Source: http://www.doksinet Market valuation of new

food delivery companies in Europe as of August 2016 0 500 1000 Market valuation in million euros 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 Foodpanda 500 Annual revenue Food Panda worldwide in 2016: 50.6 million Euro HES-SO Valais-Wallis Page 12 Source: Statista (Digital Market Outlook) ID 696525, Rocket Internet ID 696519 Source: http://www.doksinet 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 13 Source: http://www.doksinet Analysis of Booking Options on

Restaurant Websites in Germany and France HES-SO Valais-Wallis Page 14 Source: http://www.doksinet Sample Size Details Number of restaurants in top-20 cities in Germany 300 41% 250 200 Number of selected restaurants in Germany and France 150 100 16% 9% 9% 50 7% 7% 7% 3% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% 0 594 50% 594 50% Germany France Number of restaurants in top-20 cities in France 300 250 200 150 100 50 0 HES-SO Valais-Wallis Page 15 47% 23% 7% 6% 6% 6% 4% 3% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% Source: http://www.doksinet Having a Websites 500 82% 471 450 400 70% 402 350 300 250 Many restaurants without a website have a online presence via Facebook Germany France 200 30% 171 150 100 50 18% 102 0 No HES-SO Valais-Wallis Page 16 Yes Italian Survey 2017 (n=763): 81% of restaurants with a website. Source: Osservatorio Innovazione Digitale nel Turismo Source: http://www.doksinet Third-party Booking System

on Restaurant Website Bookatable (by Michelin) HES-SO Valais-Wallis Page 17 Source: http://www.doksinet Booking Form HES-SO Valais-Wallis Page 18 Source: http://www.doksinet Booking Options Germany Contact form; 15% Resimo; 1% HORECA.DIGITAL; 1% Bookatable; 1% Quandoo; 3% Online Platforms Other; 19% Bookatable ; 4% Guest can contact restaurant only Opentable; 7% by mail or telephone for a booking No 65% HES-SO Valais-Wallis Page 19 19% of restaurant use a third-party booking platform on their website, only 15% have an own formalized table booking form on their website. Source: http://www.doksinet Booking Options France Contact form; 11% Bookatable; 1% Personal tool; 1% guestonline; 2% Uniiti; 2% Online Platforms Other; 19% La fourchette; 7% No 68% HES-SO Valais-Wallis Page 20 zenchef; 5% 19% of restaurant use an external booking platform, only 11% have an own formalized table booking online form on their website. Source: http://www.doksinet Delivery Services:

Germany versus France 500 450 91% 429 91% 367 400 350 300 250 no 200 yes 150 100 9% 42 50 9% 35 0 Germany HES-SO Valais-Wallis Page 21 France One out of ten restaurants offers a delivery service on website Comment: The delivery services is stated on the website of the restaurant. Source: http://www.doksinet Take-Away: Germany vs France 77% 364 400 77% 309 350 300 250 No 200 Yes 23% 107 150 23% 93 100 50 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. Source: http://www.doksinet Analysis of the Presence of German and French Restaurants on Main Booking and Delivery Platforms HES-SO Valais-Wallis Page 23 Source: http://www.doksinet Online Booking on Tripadvisor BookATable (Michelin) HES-SO Valais-Wallis Page 24 Source: http://www.doksinet Online Booking on TripAdvisor 95% 544 600 80% 458 500 400 Germany France 300 200 20% 115

100 5% 29 0 Yes HES-SO Valais-Wallis Page 25 No Source: http://www.doksinet Delivery on Tripadvisor HES-SO Valais-Wallis Page 26 Source: http://www.doksinet Delivery service on TripAdvisor No 93%; 532 97% 554 No Lieferando 4%; 23 Deliveroo 2%; 13 3% 19 Deliveroo Lieferheld 1%; 5 0 100 200 HES-SO Valais-Wallis Page 27 300 400 500 600 0 200 400 Delivery service can be ordred in 7% of restaurants in Germany and 3% of restaurants in France on TripAdvisor 600 Source: http://www.doksinet Presence of restaurants on booking platforms Comment: HES-SO Valais-Wallis Page 28 – – Restaurant on the official page of a booking platform The restaurant needs to be «bookable» on the site Source: http://www.doksinet Presence of Restaurants on Booking Platforms 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 529 542 555 50% 40% 40% 30% 30% 20% 20% 10% 0% 44 31 Opentable Bookatable Yes Page 29 548 10% 18 Quandoo No HES-SO

Valais-Wallis 469 0% 104 25 Bookatable Yes La Fourchette No Comment: The sample does not include restaurants that are closed. Restaurants that don’t have a website are, however, included. Source: http://www.doksinet 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 30 Source: http://www.doksinet Restaurant Survey: Responses by Country 0 France Sweden Finland Denmark Austria Czech Republic Germany Belgium Estonia Switzerland Turkey Malta Hungary United Kingdom Italy Ireland Netherlands 50 100 150 200 250 300 observations 283 81 75 Country-specific report possible when n>50 47 42 29 23 13 9 7 6 6 4 1 1 1 1 HES-SO Valais-Wallis Page 31 Total from online survey (october 12): n=629 Comment:

Similar survey in 2017 in Italy (n=763) Source: http://www.doksinet Percentage of guests in restaurant in 2017 who booked a seat in advance 75 and more% 88 From 50 to 74% Mean value: 45% 69 Expert estimation From 25 to 49% 51 (n=14): 57% From 5 to 24% 94 Less than 5% 22 0 10 20 n=324 30 40 50 observations HES-SO Valais-Wallis Page 32 60 70 80 90 100 Source: http://www.doksinet Distribution channels for advanced restaurant bookings 0 20 40 64.6 Direct - Phone 12.5 Direct - Email Direct - via reservation system on website of restaurant Direct - Booking form on own website (manual handling) 6.1 0.5 Direct - Mail / fax 0.3 Restaurant online booking platforms (e.g La Fourchette/The Reservations of tour operators for groups or business partners Coupon websites (e.g Groupon) HES-SO Valais-Wallis Page 33 Direct bookings: 88.3% (same as expert estimation!) 4.4 Direct - via mobile app of restaurant Other distribution channels 80 % 60 5.9 3.2

Expert estimation (n=14): 7.3% Facebook, Walk-in etc. 2.5 0.1 Italian Survey 2017 (n=611): 70% of restaurants with offline bookings (telephone). Direct bookings 91% and online platforms 3%. Source: Osservatorio Innovazione Digitale nel Turismo n=535 Source: http://www.doksinet Evolution of reservations via restaurant online booking platforms over the past 3 years 0 50 100 Strongly increasing 81 150 200 250 300 350 400 observations 70% of restaurants working with the portals see a slight to strong increase. Slightly increasing 74 Stable Slightly decreasing Strongly decreasing Expert evaluation (n=13): 77% slightly to strongly increasing 58 2 6 Do not work with them 374 n=595 HES-SO Valais-Wallis Page 34 Source: http://www.doksinet 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. Very much in favour

Experts (n=13): 61% see no need, 39% in 54 favour. Non response 150 0 20 HES-SO Valais-Wallis Page 37 40 60 80 100 120 140 160 180 200 Source: http://www.doksinet Work with food delivery service Yes, we work with an external service (e.g UberEats, Deliveroo, etc.) 30 Yes, we have our own "take away"/delivery service 13 No 515 0 HES-SO Valais-Wallis Page 39 100 200 300 400 500 600 Responding restaurants (n=557): Only 7% of restaurants work with delivery services (5% with external services) Source: http://www.doksinet 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 HES-SO Valais-Wallis Page 40 40 60 80 100 Responding restaurants (n=257): 120 140 160 180 Source: http://www.doksinet 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 41 Source: http://www.doksinet 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 Source:

http://www.doksinet 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 Source: http://www.doksinet 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 Booking Holding HES-SO

Valais-Wallis Page 44 Meta-search player Source: http://www.doksinet 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 Source: http://www.doksinet 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 Source: http://www.doksinet 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: roland.schegg@hevsch Twitter: @RolandSchegg LinkedIn: ch.linkedincom/in/rolandschegg/ School: www.hevsch Institute of tourism: https://www.hevsch/fr/rad-instituts/institut-tourisme eTourism news: www.etourism-monitorch Tourism Observatory: www.tourobsch Bachelor of Science HES-SO in Tourism in German, French and English http://tourism.hevsch EMBA en innovation touristique:

www.innovation-touristiquecom HES-SO Valais-Wallis Page 47 Source: http://www.doksinet Merci!