Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Boom in smartphone usage boosts home delivery
- Third-party delivery companies dealing with workplace rights issues
- Night-time economy helps bolster sales
- Key players
- Just Eat extends its market reach
- Chatbots support home delivery
- Robots enter market
- Click-and-collect services gain prominence
- The consumer
- Home delivery has become ubiquitous
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- Figure 1: Frequency of takeaway/home delivery usage, 2015-16, December 2016
- Potential to tap into walk-in customers
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- Figure 2: Platforms used to order a takeaway/home delivery, 2015-16, December 2016
- Weekday home delivery trade driven by dads
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- Figure 3: Occasions for using takeaways/home deliveries, December 2016
- Late afternoon usage gains momentum
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- Figure 4: Times of day people typically use takeaways/home deliveries, December 2016
- British lifestyles fuel home delivery
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- Figure 5: Reasons for using takeaway/home delivery, December 2016
- Price is a key consideration
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- Figure 6: Behaviours towards home delivery/takeaway, December 2016
- What we think
Issues and Insights
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- Brands can use technology to improve packaging and delivery methods
- The facts
- The implications
- Potential to engage with regular customers on the phone
- The facts
- The implications
The Market – What You Need to Know
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- Restaurants benefit from boom in smartphone usage
- Delivery companies connected with employment disputes
- Bricks and mortar sites threatened by new business rates
- Potential for late-night delivery
Market Drivers
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- Eating out remains a key discretionary spending area
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- Figure 7: Selected consumer spending priorities (after bills), November 2011-January 2017
- Potential to target older age groups
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- Figure 8: Trends in the age structure of the UK population, 2011-21
- Smartphone ownership is peaking
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- Figure 9: Ownership of mobile phones, January 2012-December 2015
- Gig economy increasingly connected with employment disputes
- Rising business rates could temper growth in prime cities
- The night-time economy' fuels late night trade
Key Players – What You Need to Know
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- Just Eat extends its market reach
- Domino's focuses on engaging its young users
- Deliveroo focuses its RooBox format
- Click-and-collect services gain traction
- Trailing self-driving delivery robots
- Chatbot drives e-commerce and customer service
Companies and Brands
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- Pizza delivery brands
- Papa John's success driven by store growth
- Domino's investment in technology pays off
- Pizza Hut Express rivals grab-and-go operators
- Ordering and delivery providers
- Just Eat ramps up new investments
- Punch Taverns adopts an open-door home delivery system
- Deliveroo focuses on lunchtime trade and technology infrastructure
- Amazon Prime launches restaurant delivery
- UberEats focuses on geographic segmentation
- Feast HQ capitalising on late-night trading
- Click-and-collect services
- Wriggle taps into demand for special deals
- MealPal and MealFix – Two lunch subscription start-ups in London
- Delivery-only formats
- Scalability of EatFirst offers cost savings over bricks-and-mortar channels
- RooBox helps restaurants expand into delivery
- Food operators set up delivery options
- Greggs extends delivery trial to bolster lunchtime trade
- Burger King offers home delivery through its own website
Market Share
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- Changing British lifestyles fuel takeaway/home delivery services
- Expansion
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- Figure 10: Number of UK restaurants delivered from selected leading foodservice online ordering portals, March 2017
Launch Activity and Innovation
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- Electronic payment technology takes off
- Lunch subscriptions to rival grab-and-go market
- Self-driving delivery robots
- Chatbots drive e-commerce and customer service
The Consumer – What You Need to Know
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- Home delivery is widely used
- Calling is still the most common ordering method
- Dads are driving weekday home delivery
- Price matters
Takeaway/Home Delivery Usage
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- Four in five Brits buy takeaway/home delivery
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- Figure 11: Frequency of takeaway/home delivery usage, December 2016
- Direct from restaurant delivery
- Usage is high
- Usage differs slightly between gender and age groups
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- Figure 12: Home delivery/takeaway usage, by age and gender, December 2016
- Younger men order more regularly…
- …but food delivery remains a rare treat for most
- Third-party delivery users are Millennial men, wealthy and Londoners
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- Figure 13: Frequency of takeaway/home delivery usage, 2015-16, December 2016
Ordering Habits
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- Over-65s place orders via phone
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- Figure 14: Platforms used to order a takeaway/home delivery, 2015-16, December 2016
- Room to develop take-out functions
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- Figure 15: Platforms used to order a takeaway/home delivery, by age, December 2016
Usage Occasions
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- Men seek weekday meals for home delivery
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- Figure 16: Occasions for using takeaways/home deliveries, December 2016
- Potential to sway more late afternoon usage
- Londoners more likely to use home delivery for breakfast and lunch
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- Figure 17: Times of day people typically use takeaways/home deliveries, December 2016
Reasons for Using Takeaway/Home Delivery
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- Brits are addicted to creature comforts
- Price seen as important for home delivery
- Washing up seen as something of a chore by many
- Parents have no time to cook
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- Figure 18: Reasons for using takeaway/home delivery, December 2016
Behaviours towards Takeaway/Home Delivery
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- Recognised brands have better chance of success
- Men more likely than women to use home delivery on impulse
- Using eco-friendly delivery methods to drive sales
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- Figure 19: Behaviours towards home delivery/takeaway, December 2016
CHAID Analysis
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- Methodology
- Adaptive pricing can bolster sales during quieter times
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- Figure 20: Attitudes towards home-delivery and takeaway food – CHAID – Tree output, December 2016
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- Figure 21: Attitudes towards home-delivery and takeaway food – CHAID – Table output, December 2016
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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