60% of Digital Food Orders are Placed Via Mobile App

BY Rachel Cagle
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"Restaurant digital orders have grown at an average annual rate of 23% since 2013 and will triple in volume by the end of 2020, and the majority of digital orders, 6 out of 10, are by mobile apps, reports The NPD Group. A restaurant’s app or website represents 70% of digital orders and the remaining orders are through third-​party apps or other types of apps or websites, according to the findings of NPD’s recently released Delivering Digital Convenience report."

"Among the reasons why restaurant branded apps are accessed the most is that customers of some of these brands are more drawn to rewards and savings, while other restaurant brands appeal to consumers who want to customize their order or take time and friction out of the ordering process. Frequency of use varies by brand, though deals and discounts contribute to greater use, finds the NPD study."

According to AudienceSCAN, within the last six months, 39% of Online Food Orderers have used a mobile device to redeem or download a coupon and, within the past year, 54.9% have taken action after seeing ads on Daily Deals websites such as Groupon. Overall, they believe the best place for finding coupons is within mailed ads and flyers (33.6% agree). This dedication to saving may be because increasing savings is a personal goal of 41.3% of this audience for this year.

"Although not as popular as restaurant-​branded apps, third-​party apps, like DoorDash, Grubhub/​Seamless, and UberEATS, account for more than their fair share (40%) of the 20 most-​used apps. The primary reasons for using a third-​party app versus a restaurant branded app, according to the consumers surveyed, are looking up items, paying for meals, and checking prices. For the smaller and independent operators, third-​party apps level the playing field and give them a piece of the growing digital ordering sector without having to make expensive investments in their IT infrastructure."

'Digital orders will remain an outsized source of growth for the restaurant industry over the next few years, and operators who desire to grow need to embrace a digital strategy,' says David Portalatin, NPD food industry advisor and author of Eating Patterns in America. 'There are clear leaders in the digital ordering space, brands, and third-​party providers who have achieved critical mass the fastest. To make the best decisions about digital strategies and potential partnerships, operators need to understand the key features that differentiate these companies from one another.'”

Restaurants can promote their apps and related benefits to Online Food Orderers via digital media. According to AudienceSCAN, last year, 55.4% of this audience took action after receiving an email ad and 52% took action after either receiving an ad via text message or seeing an ad on their mobile smartphone apps. They're also 24% more likely than other adults to click on text link ads on websites and 52% more likely to find ads on social networks useful. In terms of traditional advertising, last year, 69.4% of these consumers took action after seeing TV commercials and 62.9% took action after receiving direct mail ads.

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.