Discover TripAdvisor and TheFork Economic impact
As dedicated restaurant partners, TripAdvisor and TheFork are committed to helping restaurants grow their business all over the world. In order to measure the real economic impact of both companies, Strategy&, a division of PwC, has issued a study showing that TripAdvisor and TheFork influenced nearly $8 billion in diner spend globally within the $1.6 trillion restaurant and hospitality industry.
Let’s dive into this 2019 Restaurant Economic Impact Study to learn more insights about the size, growth and key trends of the global dining industry.
What did we learn about global restaurant market?
The study shows that the global restaurant market generated $1.6 trillion in 2018, and its annual growth is expected to accelerate from 2.9% (2010-2018) to 4.7% (2018-2022).* The study focuses on 6 growing markets for TripAdvisor and TheFork: United States,Italy,Spain,France,United Kingdom and The Netherlands.
The Restaurant Market in Covered Countries, Sales in $Bn in 2018
Restaurant Market in Covered Countries, CAGR 2010-2018 and 2018-2022 in %
We can see that restaurant market will continue to grow between 2018 and 2022 which means great business opportunities for TheFork to drive growth within the restaurant industry and support restaurant owners on their digitalization.
“TripAdvisor and TheFork are proud to contribute to the growth of the restaurant industry and create value where we operate globally. Our ambition continues to be to help drive growth and digitization within the restaurant industry as we connect more diners with exciting culinary experiences that match their interests.” – Bertrand Jelensperger, Senior Vice President, TripAdvisor Restaurants & CEO, TheFork
How did TripAdvisor & TheFork influence diner spend in 2018?
“The size and acceleration of the global dining industry is very encouraging for restaurateurs in [local market] and beyond. In a highly competitive market, having a strong presence online is crucial for delivering the best customer experience. It’s also clear that TripAdvisor and TheFork have a substantial, positive economic impact on this industry in a number of ways, from driving incremental revenue for dining businesses to supporting local jobs.” – Pierre Péladeau, Partner of Strategy&.
Using market research, site data and a survey of restaurant clients*, Strategy& determined that TripAdvisor and TheFork together influenced $7.9 billion USD of restaurant revenue in 2018 in the six markets covered, representing 200+ million additional meals in restaurants that would not have happened without these companies.
If we take a closer look at the 6 markets within the scope of the study, it demonstrates that over 320 million additional meals occurred in restaurants and would not have happened without these companies.
- In Italy, TripAdvisor and TheFork impacted $2.2 billion restaurant revenue, corresponding to 80 million additional dining decisions.
- In France, TripAdvisor and TheFork impacted $1.8 billion restaurant revenue, corresponding to 56 million additional dining decisions.
- In Spain, TripAdvisor and TheFork impacted $1.6 billion restaurant revenue, corresponding to 79 million additional dining decisions.
- In the U.S., TripAdvisor impacted $1.2 billion restaurant revenue, corresponding to 64 million additional dining decisions.
- In the UK, TripAdvisor impacted $800 million restaurant revenue, corresponding to 35 million additional dining decisions.
- In the Netherlands, TripAdvisor and TheFork impacted $200 million restaurant revenue, corresponding to 6 million additional dining decisions.
How did TripAdvisor and TheFork influence hiring in the restaurant industry?
Strategy& also found that TripAdvisor and TheFork’s incremental impact generated or sustained ~60,000 direct and indirect jobs in 2018 in the 6 countries within the scope of this study.
Overall, both companies have been:
supporting 10,900 direct and indirect jobs in France over the same period
supporting 14,400 direct and indirect jobs in Spain over the same period.
supporting 14,100 direct and indirect jobs in the U.S. over the same period.
supporting 4,500 direct and indirect jobs in the UK over the same period.
supporting 13,900 direct and indirect jobs in Italy over the same period.
supporting +1,000 direct and indirect jobs in the Netherlands over the same period.
What are the key takeaways for Restaurant owners
The Strategy& study reveals 5 marketing tips/areas/keys for dining business success:
Be bookable online
Restaurateurs who subscribe to TheFork’s reservation platform to make it easy for guests to book their property see an average of 7 times the return on their investment, and 5% increase in additional revenue.
Be present where hungry diners are doing their research
Millions of consumers turn to travel planning sites and apps to find the perfect place to eat. Having a presence on TripAdvisor, at no cost to the business, leads to an increase of average annual restaurant revenue.
Engage diners online
Owners benefit from claiming their listing for free on sites like TripAdvisor and engaging with their diners, such as responding to their online reviews. Claiming a restaurant on TripAdvisor generates ~$15,000 USD incremental revenue on average per year to unclaimed restaurant
Encourage online reviews
Businesses also benefit from asking diners to share their candid reviews and opinions online. Eateries with 51 to 100 total user reviews see an average +1.5% revenue compared to those with fewer reviews. Restaurants with a 4.5 bubble rating or higher on TripAdvisor also see 2% higher revenue compared to those with lower average ratings. For our tips on how to get more reviews, click here.
Consider leveling up with paid marketing
Owners should also consider paid marketing opportunities to increase traffic and revenue. Restaurants participating in TripAdvisor Premium capture an average +6 points higher % incremental revenue than restaurants that have not subscribed. Those with active TripAdvisor Ads capture 5 points higher % incremental revenue than those that do not. Learn more about TripAdvisor’s restaurant solutions here.
*The Strategy& 2019 Restaurants Economic Impact study analyzed data from 2018, including sector sales and number of restaurant locations at the global level, and in 6 major markets where TheFork and TripAdvisor do business (i.e., US, UK, France, Italy, Spain and the Netherlands). The study also analyzed internal and historical data on TripAdvisor and TheFork partner restaurants, including number of restaurants, rates, number of bookings, level of discounts, number of persons under bookings and number of reviews, photos, management responses, etc. Finally, Strategy& surveyed restaurant clients in the 6 markets included in the scope of the study, which generated 2,127 respondents total and allowed, together with the industry data collected, to compute the incremental revenue impact of TripAdvisor and TheFork on the restaurant market.