Survey: Vendor Loyalty Dips as Restaurants Increasingly Go Online to Purchase Equipment

LOS ANGELES, April 28, 2021 /PRNewswire/ -- In a recent survey of restaurant owners and managers, 85 percent of respondents reported an increase in comparison shopping and just 15 percent of respondents said they remain loyal to one restaurant supply store. The survey was conducted by Credit Key, a provider of B2B e-commerce payments solutions, which has been rapidly adding restaurant supply companies to its portfolio of online merchants. 

"As more restaurant suppliers turn to Credit Key for e-commerce payments, we thought it would be helpful to gain some insight into the mindset of purchasers," said John Tomich, co-founder and CEO of Credit Key. "We learned that restaurants plan to make significant equipment purchases in the coming months. What's interesting is these buyers place more importance in how they pay for equipment than where they purchase that equipment."

Owners and managers are optimistic things will return to normal as vaccinations increase, and two thirds of respondents anticipate they'll receive funds from the government's restaurant revitalization plan. Notably, 70 percent of these restaurants plan to dedicate their relief funds to purchasing equipment, furniture and supplies in 2021. At the same time, a majority of respondents still harbor concerns about Covid-19 and its ability to disrupt their business.

"There's optimism on the buyers' side, but they're willing to leave vendor relationships behind in favor of better pricing and payment plans that put less stress on their cash flow," added Tomich. "A safeguard for sellers is to provide buyers with varied payment options at checkout including the increasingly popular buy-now-pay-later solution."

Among the findings from the survey:

• 90 percent of restaurant buyers said it's important or highly important to be provided a variety of payment options at checkout
  
• 92 percent of respondents said they intend to purchase equipment online more frequently going forward
  
• 80 percent of restaurant owners and managers forecast a meaningful increase in business, but this same 80 percent says they're concerned that Covid-19 might present disruptions in the future
  
• 63 percent of buyers are interested in buy-now-pay-later plans
  
• Of those interested in BNPL, 28 percent of respondents prefer 90 day terms, 46 percent of respondents prefer 6 months terms, and 26 percent of respondents prefer 12 month terms

Credit Key offers an alternative payment solution to B2B merchants across a variety of business categories. These solutions improve the customer experience at every point of purchase, online, offline and within retail stores. Credit Key's proprietary process allows for instant financing approval that provides purchasers an attractive financing tool at the point-of-sale. Credit Key lives alongside other payment options at checkout, but it provides the purchaser better terms and comes at no risk to the merchant. Credit Key assumes the credit risk and any loan servicing, and qualified buyers enjoy transparent payment plans and competitive rates.

The survey cited above was conducted by Credit Key from April 12 to April 15, 2021. The findings were compiled from responses of 150 individuals who either own or hold a senior management role at a restaurant, bar, coffee shop, or catering company in the United States.

Of the more than $9T in B2B payments processed in the U.S. each year, $1.3T in payments is transacted online and this is expected to reach $1.8T within the next two years. Small to medium sized enterprises, such as restaurants, play an important role here, making up for half of all B2B payments, or roughly $4.5T. 

About Credit Key
Launched in 2017, Credit Key is a B2B financial services technology company that allows merchants to offer an instant buy now pay later function that is seamlessly integrated at checkout. Credit Key's proprietary process facilitates lightning-fast financing approval that is unique in the B2B space and proven to help merchants drive sales, revenue and conversions. Merchants equipped with Credit Key also benefit from immediate payment, unmatched ROI from greater AOV, and stronger customer loyalty. To start working with Credit Key, please visit creditkey.com.

Press Contact: Shea Communications, Richard Shea (917) 584-3542

SOURCE Credit Key

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