EXCLUSIVE: IN FOCUS: Data Shows the Importance of Delivery to the Fast Food Industry
As delivery specialists such as Just Eat, Hungry House and Deliveroo battle it out for market supremacy, data from the NPD Group reveals why this sector of the market is becoming an increasingly imporant source of revenues for QSRs.
The NPD Group has revealed how delivery contributes to a significant proportion of fast food restaurant trahffic accounting for 15% of visits. In real terms, this equates to 394 million in the year ending March 2015. Fiscally, the area of delivery generates 2.6 billion pounds.
Delivery services represent a dynamic area within the fast food market. Although dominated by QS ethnic and QS pizza outlets accounting for 86% of all deliveries, there is a growing trend that suggests development of delivery services in other types of fast food.
It is important to highlight that delivery occasions generate more revenue. Firstly, there is a 41% greater spend per eater compared to average transactions. Secondly, data from the NPD Group also demonstrates that parties tend to be larger at delivery occasions (3 persons compared to 2 persons on average in QSR fast food).
These findings could be attributable in part by the fact that consumers tend to opt for the delivery option for dinner (with most visits registered between 6 and 9pm) when consumers are likely to spend more on their meal and do so in the comfort of their homes.
The convenience of delivery appeals particularly to families who make up 51% of all deliveries, which is above the overall average. The trend suggests that families have increasingly opted for deliveries – with an 11% rise compared to the previous year. Interestingly, this is against the -1% decline that we witnessed in the QSR fast food channel over the last year within this consumer group. As Muriel Illig, Account Manager in the NPD Group commented, “with the improvement and increased affordability of home entertainment and the appeal of convenience for busy families, it is unsurprising to see such a growth amongst this demographic”.
She goes on to speculate that “overall, with the development and expansion of internet based delivery platforms, fast food outlets that offer deliveries are likely to have a bright future ahead.”
About The NPD Group, Inc. The NPD Group provides global information and advisory services to drive better business decisions. By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth. Sectors covered include automotive, beauty, entertainment, fashion, food / foodservice, home, office supplies, sports, technology, toys, video games, and wireless. For more information, visit www.npd.com and npdgroupblog.com. Follow us on Twitter: @npdgroup.
