The 2019 TripAdvisor and TheFork Economic Impact Study

A study by Strategy&, a division of PwC, shows that TripAdvisor and TheFork, a TripAdvisor company, influenced nearly $8 billion in diner spend globally in the restaurant industry. What does that mean for your restaurant?

The Global Restaurant Industry Is $1.6 Trillion and Growing

The Restaurant Market in Covered Countries, Sales in $Bn in 2018

What We Learned

The study found that the global restaurant market reached $1.6 trillion USD in 2018, and its annual growth is expected to accelerate from 2.9% (2010-2018) to 4.7% (2018-2022).*

The study covered six countries — United States, United Kingdom, France, Italy, Spain, and the Netherlands.

Restaurant Market in Covered Countries, CAGR 2010-2018 and 2018-2022 in %

Breaking it down by country, the restaurant market is projected to grow across all countries covered, with Spain achieving the greatest projected growth. Spain is bouncing back with the help of increased tourism, a change in consumption, and innovative cuisine. Based on their analysis, PwC predicts that the Spanish restaurant market will bloom between 2018 and 2022.

“The size and acceleration of the global dining industry is very encouraging for restaurateurs in the U.S. and beyond. 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, Strategy&, PwC

How This Impacts Your Restaurant

A growing market means more customers look to dine out. But it also means that there’s increased competition — especially as more and more restaurants open in major metropolitan areas.

Stand out from the crowd. To make sure you stay ahead of the competition, you’ll need to stand out. One easy way to do this is by increasing your online presence. When it comes to drawing in more customers, diners trust other diners — so let them do the work for you with online reviews.

Get more reviews. The more reviews, the more opportunities to advertise your business — and rise in the ranking on TripAdvisor. But did you know that:

  • Eateries with 51 to 100 total user reviews see an average increase in revenue by 1.5% compared to those with fewer reviews. That means not only will more reviews help your online reputation, it’ll help your bottom line, too.
  • Restaurants with a 4.5 bubble rating or higher on TripAdvisor also see 2% higher revenue compared to those with lower average ratings. That means that the better your restaurant is rated on TripAdvisor, the more money you’ll make. Make sure you actively ask all of your customers to review your restaurant.

For our tips on how to get more reviews, click here.

TripAdvisor and TheFork Generated or Sustained Over 60,000 Worldwide Jobs in 2018

What We Learned

PwC also found that TripAdvisor and TheFork’s incremental impact generated or sustained over ~60,000 direct and indirect jobs in 2018 in the 6 countries within the scope of this study.

Socio-economic Impact Generated by TripAdvisor, by Country (# Jobs)

Socio-economic Impact Generated by TheFork, by Country (# Jobs)

How This Impacts Your Restaurant

It’s always been challenging for restaurants to find great staff and keep them, but that’s even harder with so much competition. With restaurant employee turnover at an all-time high, consider creating a stronger sense of accountability and culture on your team — read how this cafe uses TripAdvisor reviews to help do just that.

TripAdvisor and TheFork Influenced Nearly $8 Billion in Diner Spend in 2018

What We Learned

Using market research, site data and a survey of restaurant clients*, PwC determined that TripAdvisor and TheFork together influenced $7.9 billion USD of restaurant revenue in 2018 in the six markets covered, representing over 320 million dining out decisions.

"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 & CEO, TripAdvisor & TheFork

How This Impacts Your Restaurant

Millions of diners turn to TripAdvisor and TheFork to find the perfect place to eat. Diners today don’t just wander around and hope to find a great place — they use TripAdvisor. If you’re not already actively managing your listing on either website, it’s easy to get started.

Be where hungry diners are. Claiming your listing on TripAdvisor is free and easy:

  • Having a presence on TripAdvisor, at no cost to the business, can increase your average annual restaurant revenue by 2% or more. You’re already likely on TripAdvisor — with 5 million restaurants and counting, you’ll miss out on hungry diners without adding your listing. The good news? It’s completely free. Find your restaurant here.
  • Claimed restaurants on TripAdvisor generate ~$15,000 USD incremental revenue on average per year, compared to unclaimed restaurants. That means that managing your listing by maintaining your hours, adding photos, and responding to reviews is your online hospitality moment — and that can make all the difference when it comes to whether or not a diner chooses your restaurant.

Get started by claiming your free listing here.

Be bookable online. Using TheFork’s reservation platform makes it easy for diners to come to your restaurant and plan ahead. While you may have plenty of walk-in traffic, TheFork can help you optimize your covers so that your restaurant never has a slow service. When restaurants use TheFork, they see an average of seven times their overall return on investment and sixteen times the average annual fees paid to TheFork.

Learn more about TheFork here.

Take your TripAdvisor presence to the next level. Once you’ve claimed your free listing, capture more traffic and revenue by upgrading to TripAdvisor Premium or subscribing to TripAdvisor Ads. Plus:

  • Restaurants with TripAdvisor Premium see 6 times more incremental revenue than restaurants without it. This means that subscribing to Premium can help promote your brand and you’ll see a return on your investment.
  • Those with active TripAdvisor Ads see 5 times more incremental revenue than those without advertising. With TripAdvisor Ads, you’ll be able to drive more traffic to your listing, in turn increasing the number of diners who come to your restaurant.

Learn more about TripAdvisor’s restaurant solutions here.

Download the 2019 TripAdvisor and TheFork Economic Impact Study

*Methodology: The 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, PwC 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.

Download the 2019 TripAdvisor and TheFork Economic Impact Study

Last Updated: October 29, 2019

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