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Growing Importance of Delivery

Published :  September 17, 2019

Delivery is bringing in big business

 

Even though it’s a bit of a tongue twister, it’s absolutely true to say that consumers want what they want when they want it. 65% of consumers believe that having the flexibility to do the things they want at any time or place is important.* And when it comes to having the food they love, this has meant a massive increase in foodservice delivery and online ordering. Today, 37% of foodservice customers order delivery or pick-up at least once a week, and more than 40% say they’ve increased this behavior in the past year.**

35% of foodservice customers ages 18–34 say they are increasingly replacing carryout with delivery.

Source: Technomic 2018 Foodservice Macro Trends

They love the food, delivery makes it easier

There are many factors that could be contributing to the rise of delivery—working longer hours, more “free time” commitments, the need to multitask, etc.—but the largest is convenience. 70% of foodservice customers agree that restaurant delivery makes their lives easier.*** This is especially true of Millennials and is likely to become an even bigger consideration for the younger generations that are used to having access to their favorite things literally within arms’ reach.

 

Delivery isn’t a replacement, it’s an opportunity

The #1 reason consumers choose delivery is because they don’t want to go out to a restaurant. Meaning the dollars you gain from those sales aren’t in place of diners eating in—they’re incremental opportunities to capture customers that otherwise might not eat out at all. Plus, delivery is appealing to everyone—36% of Millennials, Gen Xers, and Baby Boomers order delivery at least once a month. A smaller percentage of Gen Z currently orders delivery, but that is likely to increase as they move into adulthood and have more disposable income.

37% of consumers say takeout has become part of their routine, and 34% say that there are more options available now to-go.
Source: Restaurant Business Online, Consumer Carryout Craze, 2019

Coupled with the overall increase in delivery, there’s been the emergence of reliable third-party delivery apps and services. Grub Hub, Uber Eats, Door Dash, Postmates, and others have become the go-to resources for operations of all sizes, allowing them to continue to focus on what they do best (make delicious food) and let the delivery services deal with logistics, vehicles, and drivers. As these become more prevalent and their services more expected for both operators and consumers, it’s going to have an exponential impact. According to Morgan Stanley, online food delivery could grow at a 16% annual compound rate for the next 5 years, which means that delivery sales—currently around $30 billion—could grow to $220 billion by 2020.

Let us help you get going

If you’re not currently offering delivery, you should at least consider it. And if you already are, we might be able to help you do it even better. PepsiCo Foodservice Digital Lab—a new PepsiCo capability focused on helping you with the technology and digital challenges you face every day—has done extensive research on the best tools and tips when it comes to delivery. As a PepsiCo Foodservice customer, you can download a complete playbook with insights into the value of delivery and how to make the most of it. For all the details and information, go to the PepsiCo Foodservice Digital Lab page.

*Kantar Consulting 2018 U.S. Monitor
**Datassential Foodbytes 2018 Trends
***Source: Mintel Foodservice 2017 Trends