Recent Gallup research determined that restaurant delivery has the potential to grow to be a $100 billion market. The quick service delivery market alone is forecasted to reach nearly $38 billion by 2020, while the entire market, including full-service restaurants, home meal kits and others, could be three times as large or more.
This forecast is not especially surprising considering that customer demand for high quality, convenient food delivery is at an all-time high. In addition to the easy ordering, added convenience and guaranteed speed, consumers want to see far more delivery options across multiple segments, beyond the traditional model which has been primarily focused on pizza and Chinese food. This means that other food chains – from sandwiches and salads to Italian and Asian food – have an amazing opportunity to grow their business by capitalizing on the growing demand.
These stats showcase customer preferences when it comes to food delivery:
74% of people in US regularly order delivery from the same establishment, but more than half say that they do so because there aren’t enough “good delivery options” near them.
The top two factors affecting the decision to order delivery are food quality – the top influencer for 63% of consumers – and the price of the food – the top influencer for 57%.
71% of people prefer ordering directly from the restaurant, while only 8% prefer ordering through third-party providers.
Asian, Italian and Sandwich are the most popular non-pizza delivery meals, with café & steak mentioned the least.
5. Digital Access:
Nearly 40% of millennials and Gen Xers plan to increase usage of food delivery, compared to just 19% for baby boomers, but both prefer to order through a restaurant’s website or app.
Few people are willing to pay more than $7.50 for delivery with a range of $2.50-5.00 as the sweet spot.