EXCLUSIVE: Latest Research Shows How People Are Ordering Delivery In the Out of Home Market
Delivery has been a buzz word within the foodservice industry over the last two years and data from the NPD Group shows that delivery visits have grown by +22% in this time (year to January 2018 versus year to January 2016).
In the year to January 2018, there were 673 million delivery visits in the out of home (OOH) market, this represents 5.9% of total OOH. While this is still relatively small, the impressive growth of delivery has meant new operators are looking to enter the market all the time. One key driver of success within this market, has been the rise of the aggregators; they have levelled the playing field, allowing independents to compete with the bigger chains.
The way we order a delivery has evolved over the last two years also. Traditionally, we would telephone the restaurant directly and place our order, now we can order online and via apps. Telephone calls are still the most popular form of ordering a delivery, representing 46% of all delivery visits. Online now accounts for 38% of delivery visits and apps 16%.
While app orders represent the smallest segment of delivery, they are the fastest growing form of placing an order; three times bigger today than they were two years ago. Apps allow delivery operators to be at your fingertips; making comparing restaurants, ordering and tracking your food very easy. Younger consumers (aged 18-34 years) have been the quickest to adopt ordering via an app; apps account for 21% of their delivery visits.
Cyril Lavenant, head of foodservice UK in the NPD group commented, “apps for delivery are definitely going to grow in popularity, particularly considering the rise of the aggregators. However, most orders are still being made over the phone and this must be taken into account. Consumers (especially older consumers) enjoy the human interaction of a phone call, it allows them to speak directly with the restaurant and ask questions when making their order. As more and more restaurants move to online and app based delivery, they must make sure to also maintain some human contact.”