Foodservice Delivery in U.S. Posts Double-Digit Gains
Despite the overall weakness in the U.S. restaurant industry, foodservice delivery posted sizable gains in both visits and sales over the past five years, reports The NPD Group. The 20 percent increase in delivery sales and 10 percent gain in delivery foodservice visits were supported in large part by the growth of digital ordering, which now represents over half of all delivery visits.
“Delivery has become a need to have and no longer a nice to have in the restaurant industry,” says Warren Solochek, senior vice president, industry relations. “Restaurants need delivery in today’s environment in order to gain and maintain share. It has become a consumer expectation.”
Consumers are so accustomed to ordering delivery that they are ordering it at breakfast and lunch in addition to dinner, which historically has been the most popular daypart to order it, according to NPD’s new study, Future of Foodservice Snapshot: Restaurant Delivery. Growth of delivery at dinner has remained flat over the last five years and has grown at breakfast and lunch.
Restaurants can consider expanding online ordering and delivery offerings, because the latest AudienceSCAN study showed 27% of Americans ordered food from restaurants online during the past six months.
Although digital ordering is a major contributor to the growth of foodservice delivery, using the phone to order still represents 49 percent of delivery visits. Third party delivery services, like UberEats, Grubhub and DoorDash, account for much of the digital delivery growth; however, the share of digital delivery by third party services is more than double among full service restaurants than quick service outlets, finds NPD’s restaurant industry trends.
Let customers know they can order food online through TV advertising. The most recent AudienceSCAN survey found 43% of Online Food Orderers took action after watching TV spots in the past month.
“Convenience is among the chief reasons why consumers visit restaurants and delivery brings a heightened level of it,” says Solochek. “We forecast that delivery will grow over the next five years and the growth will source to non-traditional delivery outlets and dayparts.”
AudienceSCAN data is available for your applications and dashboards through the SalesFuel API. Media companies and agencies can access AudienceSCAN data through the AudienceSCAN Reports in AdMall.