Foodservice Online Ordering and Delivery - US - November 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
The issues
Third party delivery usage remains low
Figure 1: Restaurant delivery & carry out net usage in the past three months, September 2018
Room to improve delivery quality and perceived value
Figure 2: Delivery and carry out statement agreement, September 2018
The opportunities
Delivery and carry out appeal to busy consumers
Figure 3: Delivery and carry out motivators, September 2018
Third party delivery company usage frequency is high
Figure 4: Third party delivery company ordering frequency, September 2018
iGens are important delivery customers
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
iGens are important delivery and carryout customers
Smartphone apps usage is almost universal
Meal kits are being reinvented
MARKET PERSPECTIVE
Meal kits become more convenient
Restaurants lure customers on premise with to-go options
MARKET FACTORS 
Almost all Americans use smartphone apps
Figure 6: Smartphone app usage over time, 2015-18
Cater to iGens
Figure 7: Population by generation, 2013-23
FSRs experience slowed growth
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 
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?
Third party delivery companies continue to expand their reach
Off-premise sales help casual dining restaurant sales
QSRs boost incremental sales through delivery partnerships
Figure 9: Uber Eats promotional email, May 10, 2018
Pizza restaurants continue to lead in delivery sales and tech innovation
WHAT’S STRUGGLING?
Restaurants and third party delivery companies define their relationship status
WHAT’S NEXT?
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 
Weekends are a key time for delivery promotions
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
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
Figure 12: Amazon Restaurant May 2018 Newsletter
Figure 13: Doordash promotional email, March 24, 2018
Figure 14: Caviar promotional email, May 19, 2018
Figure 15: Postmates promotional email, December 10, 2017
THE CONSUMER – WHAT YOU NEED TO KNOW 
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 
Consumers prefer to order directly from restaurants
Figure 16: Restaurant delivery & carry out nets usage in the past three months, September 2018
Figure 17: Restaurant delivery usage in the past three months, June 2016 and September 2018
Younger consumers drive delivery
Figure 18: Restaurant delivery & carry out net usage in the past three months, by generation, September 2018
Figure 19: On-premise vs at-home associations - delivery, by generation, July 2018
More generations are ordering via third party delivery companies
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
Figure 21: Restaurant delivery & carry out net usage in the past three months, by area, September 2018
Figure 22: Third party delivery company behaviors, by area, September 2018
Middle income drive delivery and carry out
Figure 23: Restaurant delivery & carry out net usage in the past three months, by household income, September 2018
Figure 24: On-premise vs at-home associations – delivery, by household income, July 2018
Parents use more delivery and carry out
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
Figure 26: Restaurant delivery & carry out net usage in the past three months, by race and Hispanic origin, September 2018
Figure 27: On-premise vs at-home dining behavior, by race & Hispanic origin, July 2018
Figure 28: Adventurous eater segmentation, by race, July 2018
DELIVERY AND CARRY OUT MOTIVATORS
Convenience drives delivery and carry out usage
Figure 29: Delivery and carry out motivators, September 2018
Younger generations more likely to order delivery and carry out to treat themselves
Figure 30: Delivery and carry out motivators, by generation, September 2018
Figure 31: Delivery and carry out motivators, by generation, September 2018
Single adults have unique delivery and carry out motivators
Figure 32: Delivery and carry out motivators, by parental status, September 2018
DELIVERY AND CARRY OUT STATEMENT AGREEMENT
Consumers overall positive about delivery and carry out
Figure 33: Delivery and carry out statement agreement – any agree, September 2018
Consumers more positive about delivery over time
Figure 34: Delivery and carry out statement agreement – Any agree, September 2018; June 2016
Younger consumers view third party apps more positively
Figure 35: Delivery and carry out statement agreement – Any agree, by generation, September 2018
Figure 36: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
Figure 37: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
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
Figure 39: Delivery and carry out statement agreement – Any agree, by generation, September 2018
Figure 40: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
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
Figure 42: Delivery and carry out statement agreement – any agree, by third party delivery app usage, September 2018
Figure 43: Delivery and carry out statement agreement – any agree, by third party delivery app usage, September 2018
Figure 44: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
Figure 45: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
RESTAURANT APP USAGE
Pizza restaurants still are most ordered from
Figure 46: Restaurant website and mobile ordering usage in last three months, September 2018
Urban consumers order from greater number of restaurant types
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
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 
Grubhub remains top used third party delivery company
Figure 49: Third party delivery company usage, September 2018
Urban consumers utilize more app types
Figure 50: Third party delivery company usage, by area, September 2018
Men utilize more app types
Figure 51: Third party delivery company usage, by gender, September 2018
Parents are less likely to use Grubhub compared to competitor apps
Figure 52: Third party delivery company usage, by parental status, September 2018
Millennials use the greatest number of third party delivery companies
Figure 53: Third party delivery company usage, by generation, September 2018
THIRD PARTY DELIVERY COMPANY FREQUENCY
Third party delivery company usage frequency is high
Figure 54: Third party delivery company ordering frequency, September 2018
Figure 55: Third party delivery company ordering frequency, July 2016 and September 2018
Men order more delivery
Figure 56: Third party delivery company ordering frequency, by gender, September 2018
DoorDash has the most heavy users
Figure 57: Third party delivery company ordering frequency, by third party delivery app usage, September 2018
THIRD PARTY DELIVERY COMPANY IMPORTANT FACTORS
Speed is crucial to customers
Figure 58: Third party delivery company motivators, September 2018
Figure 59: Third party delivery company motivators, June 2018 and September 2018
Postmates customers prioritize speed and cost
Figure 60: Third-party delivery company motivators, by third party delivery company, September 2018
Figure 61: Third party delivery company motivators, by third party delivery company, September 2018
Uber Eats customers interested in tracking orders in real time
Figure 62: Third party delivery company motivators, by third party delivery company, September 2018
Grubhub customers are interested in more selection and variety
Figure 63: Third party delivery company motivators, by third party delivery company, September 2018
Amazon Prime Now customers most interested in loyalty programs
Figure 64: Third party delivery company motivators, by third party delivery company, September 2018
DoorDash customers prioritize good customer service
Figure 65: Third party delivery company motivators, by third party delivery company, September 2018
THIRD PARTY DELIVERY COMPANY BEHAVIORS
Third party delivery company users are interested in choice
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
Figure 67: Third party delivery company behaviors, by Third party delivery company, September 2018
Figure 68: Third party delivery company behaviors, by third party delivery companies, September 2018
Grubhub customers are searching for more options
Figure 69: Third party delivery company behaviors, by third party companies, September 2018
Figure 70: Third party delivery company behaviors, by third party companies, September 2018
DoorDash customers are utilizing more restaurants and carry out
Figure 71: Third party delivery company behaviors, by third party companies, September 2018
Uber Eats customers are the least loyal
Figure 72: Third party delivery company behaviors, by third party companies, September 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Consumer qualitative research
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms