Table of Contents
Executive Summary
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- Top takeaways
- The issues
- Older consumers aren’t as engaged in delivery services
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- Figure 1: Restaurant delivery and pickup, by generation, September 2019
- Older consumers may be difficult to convert
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- Figure 2: Delivery and pickup motivators– Any agree, by generation, September 2019
- The opportunities
- Investment in ordering and delivery platforms and partnerships is essential to remaining relevant
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- Figure 3: Restaurant delivery and pickup, June 2016, September 2018 and September 2019
- Third-party partnerships offer versatility and ease
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- Figure 4: Third-party delivery company behaviors, by age, September 2019
- Grubhub is still the most used app, but DoorDash is catching up fast
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- Figure 5: Third-party delivery company usage, September 2018 and September 2019
The Market – What You Need to Know
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- Meal kits offer inspiration, competition to operators
- Entertaining at home appeals to younger consumers
- Lawmakers seek to regulate third-party delivery company operations
Market Perspective
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- Meal kits find a convenient sweet spot squaring against foodservice
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- Figure 6: Home Chef Creative
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- Figure 7: Home Chef Facebook post
- Figure 8: Sun Basket Facebook post
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- Figure 9: Sun Basket Facebook post
- Figure 10: Freshly Facebook post
Market Factors
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- Gen Zs come of age
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- Figure 11: Population, by generation, 2014-24
- The Netflix and chill effect
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- Figure 12: Grubhub Instagram advertisement
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- Figure 13: Postmates: We need you for the MMMmys 9/20/2019
- NY and CA officials look to regulate third-party delivery company operations
Key Players – What You Need to Know
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- Casual dining chains invest in delivery to boost struggling sales
- Domino’s bets on itself rather than third-party delivery company partners
- Operators look to virtual kitchens to feed delivery demand
- DoorDash significantly outspends all competitors on marketing
What’s Working?
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- Casual dining chains double down on delivery
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- Figure 14: Chili’s: BIG news: Chili's now offers Delivery! 10/8/2019
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- Figure 15: Outback Steakhouse: Free Sirloin Steak and 1 Side from Outback Steakhouse! 9/25/19
- Domino’s invests in itself, rather than partnerships
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- Figure 16: Domino’s Pizza Facebook post
What’s Struggling?
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- Postmates delays its IPO after Uber’s IPO flops
What to Watch
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- Ghost kitchens proliferate
Third-party Delivery Company Advertising Spend
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- DoorDash vastly outspends competitors
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- Figure 17: Online advertising spend volume for top four third-party delivery companies, January 1, 2019-October 15, 2019
- Figure 18: Online advertising spend share by device for top four third-party delivery companies, January 1, 2019-October 15, 2019
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- Figure 19: Postmates Facebook post
The Consumer – What You Need to Know
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- Americans are dining off-premise more than on-premise
- Third-party delivery company usage continues to grow
- Consumers order delivery for its convenience and comfort
- Grubhub is still the most used app, but DoorDash is catching up fast
- Seamless customers are among the most dedicated customers
Restaurant Delivery and Pickup
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- Americans are ordering in more and dining out less
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- Figure 20: Restaurant delivery and pickup in the past three months, June 2016, September 2018 and September 2019
- Gen Z and Millennials drive off-premise sales
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- Figure 21: Restaurant delivery and pickup net usage in the past three months, by generation, September 2019
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- Figure 22: Restaurant delivery and pickup net usage in the past three months, by generation, September 2019
- Third-party delivery companies appeal across generation
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- Figure 23: Restaurant third-party delivery company use, by generation, June 2016, September 2018 and September 2019
- Hispanics are key delivery and pickup customers
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- Figure 24: Restaurant delivery and pickup net use, by race and Hispanic origin, September 2019
Restaurant Delivery and Pickup Motivators
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- Consumers order delivery for relaxation and convenience
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- Figure 25: Restaurant delivery and pickup motivators – Any agree, September 2019
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- Figure 26: Uber Eats Facebook post
- Figure 27: Postmates: Free Delivery—Just Because 3/12/2019
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- Figure 28: Grubhub: Couch + pajamas + delivery = $15 off! 3/15/19
- Gen Zs are willing to trade food quality for the convenience of delivery
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- Figure 29: Delivery and pickup motivators – Any agree, by generation, September 2019
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- Figure 30: Caviar: Skip the line and pay no fees 6/3/19
- Seamless customers view delivery as being a good value
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- Figure 31: Delivery and pickup motivators – Any agree, by third-party delivery app usage, September 2019
- Grubhub users are less likely to trade food quality for convenience
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- Figure 32: Delivery and pickup motivators – Any agree, by third-party delivery app usage, September 2019
Restaurant App Usage
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- Pizza restaurant websites and apps remain dominant services
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- Figure 33: Restaurant website and mobile ordering use, September 2019
- Two thirds of consumers use more than one restaurant app
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- Figure 34: Repertoire of restaurant app use – Net: any app, September 2019
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- Figure 35: Repertoire of restaurant app use – Net: any app, September 2019
Third-party Delivery Company Use
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- Grubhub remains the most used, but DoorDash is catching up fast
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- Figure 36: Third-party delivery company use, September 2019
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- Figure 37: Third-party delivery company use, September 2018 and September 2019
- Third-party delivery company customers are not loyal to one app
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- Figure 38: Repertoire of third-party delivery company app use, September 2019
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- Figure 39: Third-party delivery company app use, by repertoire of apps used, September 2019
Third-party Delivery Company Use Frequency
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- Third-party delivery users are frequent, weekly customers
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- Figure 40: Third-party delivery company use frequency, September 2019
- Men are heavy third-party delivery company users
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- Figure 41: Third-party delivery company use frequency, by gender, September 2019
- More than half of Seamless customers are ordering twice or more a week
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- Figure 42: Third-party delivery company use frequency, by third-party delivery app usage, September 2019
Third-party Delivery Company Behavior
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- More than half of third-party delivery company customers use apps as a discovery tool
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- Figure 43: Third-party delivery company behavior, September 2019
- Attract younger consumers with diverse options
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- Figure 44: Third-party delivery company behavior, by age, September 2019
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- Figure 45: Grubhub Facebook post
- Investing in third-party delivery app user experience is key to increasing usage among older consumers
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- Figure 46: Third-party delivery company behavior, by age, September 2019
Important Third-party Delivery Company Features
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- Affordability and speed are essential
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- Figure 47: Important third-party delivery company features, September 2019
- DoorDash customers most likely to prioritize fast delivery
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- Figure 48: Important third-party delivery company features, by third-party delivery company usage, September 2019
- Grubhub customers care about cost
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- Figure 49: Important third-party delivery company features, by third-party delivery company, September 2019
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- Figure 50: Grubhub Facebook post
- ChowNow customers most interested in subscription delivery programs
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- Figure 51: DoorDash: You’re getting DashPass FREE for 30 days—here you go! 8/7/2019
- Figure 52: Important third-party delivery company features, by third-party delivery company, September 2019
- Seamless and Ritual customers most interested in loyalty programs
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- Figure 53: Important third-party delivery company features, by third-party delivery company, September 2019
Price Sensitivity Analysis
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- Consumers’ delivery fee expectations are not dependent on menu item costs
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- Figure 54: Price sensitivity summary table, September 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Behavioral data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – The Consumer
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- Figure 55: Price sensitivity – Large single-topping pizza from fast food pizza chain – Optimal price, September 2019
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- Figure 56: Price sensitivity – Large single-topping pizza from fast food pizza chain – Threshold prices, September 2019
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- Figure 57: Price sensitivity – Large single-topping pizza from fast food pizza chain – Price sensitivity aggregate table, September 2019
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- Figure 58: Price sensitivity – Large single-topping pizza from local sit-down Italian restaurant – Optimal price, September 2019
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- Figure 59: Price sensitivity – Large single-topping pizza from local sit-down Italian restaurant – Threshold prices, September 2019
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- Figure 60: Price sensitivity – Large single-topping pizza from local sit-down Italian restaurant – Price sensitivity aggregate table, September 2019
- Repertoire Analysis Methodology
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