The home delivery market has enjoyed a healthy growth in the last five years and looks likely to continue in this vein even while other food outlets are feeling the squeeze of the economic downturn. The credit crunch and rising fuel and food prices are taking their toll on this market, and prices are rising to cover costs. However, as consumers start to feel the pinch, they often trade down from more expensive alternatives, and it is not expected that home delivery will be badly affected.

The home delivery market is dominated by the major pizza brands: Domino’s, Papa Johns, Perfect Pizza and Pizza Hut. These companies are leading the market in systems development, e-commerce and advertising. Newcomers such as Just-Eat.co.uk are facilitating the technological advancement of the market on a wider scale by providing an online solution for local restaurant businesses that do not have the resource or inclination to offer e-solutions. Online ordering is a major part of trade for some companies and will become increasingly important across the market as the main customer base, the under-35s, order online using a computer, their television or a mobile phone.

This report examines the hypothesis: will the rapid growth in home delivery food service continue?

Main issues:

Impact of technology: internet visibility and e-commerce, ordering and delivery systems

Threats to the market: rising food and fuel prices, credit crunch, supermarket ready meals, consumer attitudes to healthy eating, effect of media

Home delivery successes: what companies are offering, how they are targeting consumers and building loyalty, what the barriers to entry are.