The business of business dining
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1 The business of business dining Business travelers are responsible for a hefty portion of the average company s dining spend. What a new study uncovers about their habits and preferences may surprise you.
2 The face of the modern business traveler is ever-changing, but they all have at least one thing in common: they ve all got to eat. So what s on their plate besides work when they re on the company s dime? This first-of-its-kind study reveals business travelers restaurant preferences, technology use, corporate policies and more.
3 ABSTRACT Business travel spending is a big piece of the U.S. economy. A 2017 report showed that domestic business trips accounted for $424 billion in spending roughly 3% of the national GDP*. Within business travel spending, dining is one of the top expense categories. Totaling approximately $77 billion in 2016, it is the third largest area of spend, behind lodging and airfare. Yet little has been done to understand the habits and preferences of business diners and the companies who fund their trips until now. The GBTA and Dinova conducted an in-depth survey of U.S. business travelers in Spring 2018, uncovering trends in diners habits, technology use, and company expense policies, as well as fascinating generational differences. * American Express Global Business Travel & GBTA Foundation The U.S. Business Travel Industry Business Travel s Impact on Jobs and the U.S. Economy, July 2017 METHODOLOGY & DEMOGRAPHICS We surveyed more than 509 U.S. business travelers online. To qualify, respondents had to: Be employed (either full-time or part-time) Carry a corporate credit card (or have been offered a card and declined) Have traveled for business in the past year Most of the participants (67%) were middle- or upper-management. Another 13% identified themselves as support staff, while 18% were C-level executives. who took the survey? Respondents were split fairly evenly along generational lines. Roughly a third (29%) were Baby Boomers (aged 54+), another 37% were Gen Xers (aged 38-53), and 34% were Millennials (aged 22-37). Fifty-five percent of respondents were male, while 44% were female and 1% declined to answer. 37% Gen Xers 34% 29 % Millennials Baby Boomers 3
4 RESULTS Generational differences in dining spending and preferences Millennials Gen X Baby Boomers Most likely to dine on-the-go Most likely to be part of a pack Most likely to wine and dine 18 % get grab-and-go breakfast 23 % get a quick and easy lunch by themselves 18 % get delivery or take out for dinner 18 % eat breakfast with clients 31 % eat lunch with coworkers 30 % grab dinner with coworkers 63 % eat breakfast at the hotel 38 % eat lunch with clients 52 % eat dinner with clients 51 % 51 % 79 % typically eat fast food while traveling tend toward fast casual dining opt for upscale casual dining Millennials favor portable efficiency The Millennials in our study largely opted for quicker, cheaper dining options. Perhaps surprisingly, given their foodie rap, 51% of Millennials said they usually choose fast food while traveling. Millennials 53% of whom said they researched restaurants that were close to their travel destinations typically eat on the go, shattering the common misconceptions that most business diners wear suits and ties and only dine in white tablecloth establishments. Gen X splits the difference While Boomers preferred to wind down at upscale establishments and Millennials opted for multi-tasking meals, Gen X was the happy medium. They generally viewed business dining as a more social occasion, and were more likely to be seen in a group of coworkers than their Millennial counterparts. Fast casual was their top restaurant category, allowing for both convenience and a quick, sitdown break from work. Their research behaviors reflect a balanced interest in both quality and convenience; 63% of Gen Xers reported researching restaurant reviews, while 60% said they also researched restaurants that were nearby. Baby Boomers entertain & indulge The longer the career, the larger the restaurant tab. Boomers were the segment most likely to wine and dine ; 79% said they prefer upscale dining choices while on business. Often, they are having lunch or dinner with clients and simply let the client decide where to eat. While restaurant location was the most important factor overall (at 27%), Boomers were more keenly focused on quality and experience than the other generations. 70% of Boomer respondents said they research the top reviewed restaurants when traveling. 4
5 Professionals embrace restaurant & food technology Regardless of age, business diners have embraced restaurant apps and other technology. A whopping 63% of business travelers reported having dining-related apps on their mobile phones. When it comes to selecting a restaurant and making arrangements, they rely on mobile devices to do a lot of the heavy lifting. How are business diners using mobile? 54% search for local places to eat 47% make restaurant reservations 33% search social media for restaurant information When asked which dining mobile apps they use, respondents most often cited Yelp (53%). TripAdvisor, Grub Hub, OpenTable, and Uber Eats were also in the top five. What mobile apps are business diners using? 53% Yelp 50% TripAdvisor 36% Grubhub 34% OpenTable 34% Uber Eats While the majority of business travelers do use food-related mobile apps, there are some interesting generational differences as to which apps are most used. For Millennials, delivery apps like UberEats are most popular; 45% of Millennials reported having UberEats on their device, while only 36% have Yelp. By contrast, 74% of Boomers have the Yelp app, and only 16% have UberEats. Gen Xers technology habits, again, fall somewhere between Millennials and Boomers. They are more similar to Boomers in their adoption of peerto-peer apps; 56% use Yelp, and 54% use TripAdvisor. But Gen Xers use food delivery apps at a much higher rate than Boomers, mirroring Millennials in that regard. About twice as many Gen Xers used UberEats (33%) than Boomers (16%). Millennials Gen X Baby Boomers 45 % 56 % 74 % 5
6 Business diners come prepared, seek local experiences Do business travelers like to wing it when choosing where to eat? The answer among our survey participants was a resounding no. In fact, 63% of travelers said they researched places to eat before their trip. Business travelers crave local flavor 77% So what exactly are they looking for? For many, local experiences and flavors top the list; a full 77% of business travelers said they prefer to eat like a local while traveling. Another 52% said they search for restaurants that are popular with locals, and 49% research food that is unique to their travel destination. 63% of travelers said they researched places to eat before their trip prefer to eat like a local 52% Despite their affinity for local flavor, business diners like to play it somewhat safe. During their pre-trip research, 36% said they look for tried and true restaurant options, while 59% find comfort in having trusted brands as available options. search for restaurants that are popular with locals 49% research food that is unique to their travel destination Business travelers aren t ditching their diets while on the road though; they re increasingly seeking healthy food options. Most survey takers (76%) said healthy eating was either very important or somewhat important when traveling for business. Of these, many had specific dietary restrictions. While the number was 25% overall, 40% of Millennials reported having special dietary needs. The Road to Wellness What do you look for when considering healthy options on business trips? 64% 23% 43% 18% Healthier menu listings Vegetarian or vegan Published nutrition facts Gluten-free options 6
7 Corporate dining policies offer flexibility, but employees are mindful of the bottom line I I treat the company money as if it were my own. Survey Response Of the business diners surveyed, only one in three (34%) said their workplace enforces a per diem. More commonly, diners are encouraged to follow general guidelines; this was the case for 41% of business travelers. About a quarter (22%) said their companies have no formal dining policy or restrictions at all. Of the business diners who do have a company per diem to follow, the average is between $41 and $50 that s just below the General Services Administration per diem amount for fiscal year 2018, which is currently set at $51. Only 1 in 3 business diners are required to follow a per diem However, corporate policies seem somewhat liberal when it comes to which diningrelated expenses can be reimbursed. 46% of respondents said their company allows them to expense alcoholic beverages. Even higher are the percentages of respondents who said their companies allow for expensing group meals (56%) and client entertaining (71%). Despite these lenient corporate policies, diners aren t always comfortable asking for reimbursement; 46% of all participants were concerned they would appear irresponsible for expensing things that were outside of the company policy. Perhaps surprisingly, Millennials appeared the most hesitant to expense extras, like room service, snacks, and coffee. Minding the Money Millennials are surprisingly conservative with company funds. 70 % hesitate to expense snacks 66 % have reservations about expensing room service 58 % think twice about expensing alcohol 7
8 Corporate credit cards still the top payment choice, however cash makes an appearance on the road Overall, the professionals we surveyed use a corporate credit card as their payment of choice; 72% reported using their corporate card to pay for business-related meals. However, 42% of the Millennial workforce also uses cash. In contrast, only 15% of Baby Boomers are shelling out the Benjamins and Gen Xers fall in between with 31%. How do business diners pay? Millennials CASH 42% CORPORATE CARD 64% Gen Xers Boomers 31% 15% 74% 80% Companies and employees embrace corporate dining rewards programs As companies increasingly seek ways to augment their benefits packages while protecting their margins, some are turning to rewards programs. A large percentage of survey takers said their companies already reward them for dining within policy; even more said they would be interested in such a program if their employer offered one. Preferred dining programs like the program offered through Dinova, which allows diners to earn rewards for themselves and their company particularly piqued the interest of business diners. 74% stated that they would be motivated to eat in a preferred restaurant if they could earn some type of reward. preferred dining programs I would dine in company-suggested restaurants if: Millenials Gen X Baby Boomers My company earned a rebate: 39% 38% 11% I earned points for myself: 38% 44% 43% I could gift my points to my company-sponsored charity: 75% 61% 42% 8
9 About Dinova Since 2009, Dinova has provided an innovative marketplace that gives restaurants across the U.S. access to an often untapped dining segment. Our restaurant and enterprise partners understand the value of a business patron dining on official company business and know that the connections made over a meal drive understanding and shared perspectives that establish lifelong relationships. Dinova nourishes those connections to create value for restaurants, companies, and the business people we serve every day. To contact Dinova for more study insights, please reach out to: Heather Thompson P.R. Manager hthompson@dinova.com About GBTA The Global Business Travel Association (GBTA) is the world s premier business travel and meetings trade organization headquartered in the Washington, D.C. area with operations on six continents. GBTA s 9,000-plus members manage more than $345 billion of global business travel and meetings expenditures annually. GBTA delivers world-class education, events, research, advocacy and media to a growing global network of more than 28,000 travel professionals and 125,000 active contacts. To learn how business travel drives lasting business growth, visit /Dinova /Dinovanetwork 888-DINOVA8 9
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