Table of Contents
Executive Summary
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- Overview
- The issues
- Third party delivery usage remains low
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- Figure 1: Restaurant delivery & carry out net usage in the past three months, September 2018
- Room to improve delivery quality and perceived value
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- Figure 2: Delivery and carry out statement agreement, September 2018
- The opportunities
- Delivery and carry out appeal to busy consumers
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- Figure 3: Delivery and carry out motivators, September 2018
- Third party delivery company usage frequency is high
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- Figure 4: Third party delivery company ordering frequency, September 2018
- iGens are important delivery customers
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- Figure 5: Restaurant delivery & carry out net usage in the past three months, by generation, September 2018
- What it means
The Market – What You Need to Know
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- iGens are important delivery and carryout customers
- Smartphone apps usage is almost universal
- Meal kits are being reinvented
Market Perspective
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- Meal kits become more convenient
- Restaurants lure customers on premise with to-go options
Market Factors
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- Almost all Americans use smartphone apps
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- Figure 6: Smartphone app usage over time, 2015-18
- Cater to iGens
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- Figure 7: Population by generation, 2013-23
- FSRs experience slowed growth
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- Figure 8: Total US revenues and fan chart forecast of full-service restaurants, at current prices, 2013-23
Key Players – What You Need to Know
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- Third party delivery companies drive off-premise growth
- QSRs find success through delivery partnerships
- Pizza restaurants remain leaders in delivery innovation
- Subscription and loyalty programs provide value
What’s Working?
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- Third party delivery companies continue to expand their reach
- Off-premise sales help casual dining restaurant sales
- QSRs boost incremental sales through delivery partnerships
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- Figure 9: Uber Eats promotional email, May 10, 2018
- Pizza restaurants continue to lead in delivery sales and tech innovation
What’s Struggling?
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- Restaurants and third party delivery companies define their relationship status
What’s Next?
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- POS integration streamlines delivery
- Delivery loyalty and subscription services expand
- Third party delivery companies become a discovery portal
- Alcohol and food delivery merge
Third Party Delivery Company Email Marketing
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- Weekends are a key time for delivery promotions
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- Figure 10: Third party delivery company Read Rate & Volume, by day of the week (Dec ’17-May ’18)
- High volume does not necessarily translate to high engagement
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- Figure 11: Third party delivery company Read Rate & Volume, by company (Dec ’17- May ’18)
- Third party delivery companies find new ways to stand out in inboxes
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- Figure 12: Amazon Restaurant May 2018 Newsletter
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- Figure 13: Doordash promotional email, March 24, 2018
- Figure 14: Caviar promotional email, May 19, 2018
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- Figure 15: Postmates promotional email, December 10, 2017
The Consumer – What You Need to Know
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- On-premise dining isn’t going away
- The majority of consumers order directly from restaurants
- Younger generations view delivery differently
- Third party delivery usage is low, but has high frequency users
- Grubhub is most used app, but DoorDash has the most frequent users
Restaurant Delivery and Carry Out Usage
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- Consumers prefer to order directly from restaurants
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- Figure 16: Restaurant delivery & carry out nets usage in the past three months, September 2018
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- Figure 17: Restaurant delivery usage in the past three months, June 2016 and September 2018
- Younger consumers drive delivery
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- Figure 18: Restaurant delivery & carry out net usage in the past three months, by generation, September 2018
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- Figure 19: On-premise vs at-home associations - delivery, by generation, July 2018
- More generations are ordering via third party delivery companies
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- Figure 20: Restaurant third party delivery company usage in the past three months, by generation, June 2016 and September 2018
- Urban areas utilize more third party delivery and carry out
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- Figure 21: Restaurant delivery & carry out net usage in the past three months, by area, September 2018
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- Figure 22: Third party delivery company behaviors, by area, September 2018
- Middle income drive delivery and carry out
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- Figure 23: Restaurant delivery & carry out net usage in the past three months, by household income, September 2018
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- Figure 24: On-premise vs at-home associations – delivery, by household income, July 2018
- Parents use more delivery and carry out
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- Figure 25: Restaurant delivery & carry out net usage in the past three months, by parental status, September 2018
- Multicultural marketing is important for delivery and carry out
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- Figure 26: Restaurant delivery & carry out net usage in the past three months, by race and Hispanic origin, September 2018
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- Figure 27: On-premise vs at-home dining behavior, by race & Hispanic origin, July 2018
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- Figure 28: Adventurous eater segmentation, by race, July 2018
Delivery and Carry Out Motivators
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- Convenience drives delivery and carry out usage
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- Figure 29: Delivery and carry out motivators, September 2018
- Younger generations more likely to order delivery and carry out to treat themselves
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- Figure 30: Delivery and carry out motivators, by generation, September 2018
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- Figure 31: Delivery and carry out motivators, by generation, September 2018
- Single adults have unique delivery and carry out motivators
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- Figure 32: Delivery and carry out motivators, by parental status, September 2018
Delivery and Carry Out Statement Agreement
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- Consumers overall positive about delivery and carry out
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- Figure 33: Delivery and carry out statement agreement – any agree, September 2018
- Consumers more positive about delivery over time
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- Figure 34: Delivery and carry out statement agreement – Any agree, September 2018; June 2016
- Younger consumers view third party apps more positively
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- Figure 35: Delivery and carry out statement agreement – Any agree, by generation, September 2018
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- Figure 36: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
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- Figure 37: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
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- Figure 38: Delivery and carry out statement agreement – any agree, by third party delivery app usage, September 2018
- Younger consumers interested in more restaurant options for delivery
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- Figure 39: Delivery and carry out statement agreement – Any agree, by generation, September 2018
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- Figure 40: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
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- Figure 41: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
- Amazon Prime Now app users dissatisfied with food quality
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- Figure 42: Delivery and carry out statement agreement – any agree, by third party delivery app usage, September 2018
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- Figure 43: Delivery and carry out statement agreement – any agree, by third party delivery app usage, September 2018
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- Figure 44: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
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- Figure 45: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
Restaurant App Usage
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- Pizza restaurants still are most ordered from
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- Figure 46: Restaurant website and mobile ordering usage in last three months, September 2018
- Urban consumers order from greater number of restaurant types
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- Figure 47: Restaurant website and mobile ordering usage in last three months, September 2018, by area, September 2018
- Men are more interested in a variety of restaurant ordering platforms
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- Figure 48: Restaurant website and mobile ordering usage in last three months, September 2018, by gender and age, September 2018
- Consumers split on mobile versus online ordering from restaurants
Third Party Delivery Company Usage
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- Grubhub remains top used third party delivery company
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- Figure 49: Third party delivery company usage, September 2018
- Urban consumers utilize more app types
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- Figure 50: Third party delivery company usage, by area, September 2018
- Men utilize more app types
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- Figure 51: Third party delivery company usage, by gender, September 2018
- Parents are less likely to use Grubhub compared to competitor apps
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- Figure 52: Third party delivery company usage, by parental status, September 2018
- Millennials use the greatest number of third party delivery companies
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- Figure 53: Third party delivery company usage, by generation, September 2018
Third Party Delivery Company Frequency
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- Third party delivery company usage frequency is high
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- Figure 54: Third party delivery company ordering frequency, September 2018
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- Figure 55: Third party delivery company ordering frequency, July 2016 and September 2018
- Men order more delivery
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- Figure 56: Third party delivery company ordering frequency, by gender, September 2018
- DoorDash has the most heavy users
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- Figure 57: Third party delivery company ordering frequency, by third party delivery app usage, September 2018
Third Party Delivery Company Important Factors
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- Speed is crucial to customers
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- Figure 58: Third party delivery company motivators, September 2018
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- Figure 59: Third party delivery company motivators, June 2018 and September 2018
- Postmates customers prioritize speed and cost
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- Figure 60: Third-party delivery company motivators, by third party delivery company, September 2018
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- Figure 61: Third party delivery company motivators, by third party delivery company, September 2018
- Uber Eats customers interested in tracking orders in real time
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- Figure 62: Third party delivery company motivators, by third party delivery company, September 2018
- Grubhub customers are interested in more selection and variety
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- Figure 63: Third party delivery company motivators, by third party delivery company, September 2018
- Amazon Prime Now customers most interested in loyalty programs
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- Figure 64: Third party delivery company motivators, by third party delivery company, September 2018
- DoorDash customers prioritize good customer service
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- Figure 65: Third party delivery company motivators, by third party delivery company, September 2018
Third Party Delivery Company Behaviors
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- Third party delivery company users are interested in choice
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- Figure 66: Third party delivery company behaviors, September 2018
- Third party delivery company users are interested in ordering alcohol
- Postmates customers are familiar with using the app
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- Figure 67: Third party delivery company behaviors, by Third party delivery company, September 2018
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- Figure 68: Third party delivery company behaviors, by third party delivery companies, September 2018
- Grubhub customers are searching for more options
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- Figure 69: Third party delivery company behaviors, by third party companies, September 2018
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- Figure 70: Third party delivery company behaviors, by third party companies, September 2018
- DoorDash customers are utilizing more restaurants and carry out
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- Figure 71: Third party delivery company behaviors, by third party companies, September 2018
- Uber Eats customers are the least loyal
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- Figure 72: Third party delivery company behaviors, by third party companies, September 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
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