Consumers Want to Purchase from Restaurants Whose Names They Recognize

A new study from PYMNTS has found that the majority of consumers take into account familiarity with the restaurant’s name when making decisions about where to eat.

The study, created in collaboration with Paytronix, looked at regional variations in food ordering trends and digital adoption across the United States.

It found that 54% of respondents consider familiarity when choosing a full-service restaurant (FSR), and 51% do so when choosing a quick-service restaurant (QSR).

This preference for familiar brands is likely due to the fact that consumers want to minimise risk when it comes to their dining choices. With so many options available, choosing an unfamiliar restaurant can be a gamble – and one that many diners are simply not willing to take.

Andre Robbins, CEO of Paytronix, believes that this preference for familiar brands presents a significant opportunity for restaurants with high name recognition but limited availability.

“TGI Fridays had something like 94% consumer awareness – consumers know the brand,” he said. “But something like only 20% of people can go to a TGI Fridays. That’s 74% that they’re missing out on because of physical constraints.”

By leveraging the power of their brand name, restaurants can reach a wider audience and drive more sales – even if they don’t have a physical location in every market.

However, it’s important to note that name recognition alone is not enough to guarantee success. In order for consumers to actually choose your restaurant over others, you need to offer a dining experience that lives up to the hype.

The study found that the single factor that has the biggest impact on motivating consumers to make a purchase is the taste of the food. This was true for both FSRs and QSRs.