Diners are inundated with choices in ordering methods, but inconsistency across restaurant websites and apps adds to the learning curve and frustration for them. Digital ordering options will look similar over time, but for now, even small enhancements can provide significant competitive advantage and an improved perception in the online food delivery market.
Online Food Delivery Market – Current Landscape
Third-party delivery apps offer variety, but a large majoirty of diners already know which restaurant they want to order from before selecting a delivery method. This highlights a strong preference for direct ordering, as only a quarter of consumers trust third-party apps over restaurant channels.
While those prioritizing speed appreciate takeout and delivery, many question the overall experience of off-premise dining, particularly whether delivery costs justify the quality of items ordered It’s essential to invest in improvements beyond speed, focusing on packaging, consistent communication, visual appeal, and service recovery. Restaurant operators also face challenges from data breaches, tech outages affecting online orders, and the complexities associated with a gig economy for hiring and retaining staff.
The future of takeout and delivery must focus on enhancing consumer experience, not just convenience. By creating seamless ordering interfaces and building brand trust, operators and third-party apps can foster loyalty among diners and justify delivery costs that often deter diners.
Online Food Delivery Market – Market Statistics
Consumer behaviour in the online food delivery market
- 31% of Gen Z and Millenial diners order extra food to justify delivery costs.
- 77% of diners already know which restaurant they want to order from before selecting a delivery method.
- 48% prefer to order takeout/delivery over dining in at a restaurant.
Restaurant Takeout and Delivery Market Report – What’s Inside?
Key Topics Analysed in the Report
- Customer journey to ordering takeout/delivery
- Preference for dining on or off-premise
- Motivators for choosing an on or off-premise experience
- How ordering and dining methods are perceived
- Behaviors and attitudes around ordering from restaurants and third-party apps
Readers of this report may also be interested in our US Fast Casual Restaurants Market Report, or our range of Foodservice Market Research.
Meet the Expert Behind the Analysis
Varchasvi joined Mintel in 2021 as an Analyst for US Foodservice and Mintel Menu Insights. Prior to joining Mintel, she completed her MBA from the University of Notre Dame with concentrations in Marketing and Strategy.
Takeout and delivery continue to meet consumers’ desire for convenience, but to truly justify the cost, services will need to balance speed, quality, and trust.
Varchasvi
Research Analyst
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Executive Summary
- What you need to know
- Market predictions
- What consumers want & why
- Opportunities
- Upsell to diners wanting to save on time and effort
- Enhance presentation to boost cravebility
- Transparency will boost trust in third-party apps
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Market Dynamics
- Market context
- Takeout/delivery triumphs on convenience…
- Graph 1: restaurant ordering by ordering method, 2021-24
- …and demands that restaurants pivot to operating differently
- The growing disconnect in foodservice: labor strain
- Tech-enabled dining comes with unique challenges
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Consumer Insights
- Consumer fast facts
- Takeout/delivery path to ordering
- Mapping the journey from click to plate: direct ordering remains strong
- Ordering preferences across generations: loyalty vs novelty
- Graph 2: takeout/delivery path to purchase, by generation, 2024
- Through third-party apps, urban diners are tapping into new experiences
- Graph 3: takeout/delivery path to purchase, by area, 2024
- Restaurants’ digital presence makes quality family meals possible
- Graph 4: takeout/delivery path to purchase, by parental status, 2024
- Dining preference
- Equal love for eating in and out
- Graph 5: dining preference, 2024
- Convenience will shape the future of foodservice
- Graph 6: dining preference, by generation, 2024
- Convenience comes at a high price, but for some, time is money
- Graph 7: dining preference, by household income, 2024
- Graph 8: dining preference, by financial situation, 2024
- Dining preference motivators
- The success of takeout and delivery hinges on convenience
- Graph 9: reasons for preferring off-premise dining, 2024
- On-premise diners value experience over efficiency
- Graph 10: reasons for preferring on-premise dining, 2024
- Perception of ordering methods
- How consumers perceive restaurant ordering methods
- On-premise diners weigh speed against experience
- Graph 11: Ordering method perception – dining in, 2024
- Off-premise dining is delivering on speed, but not on quality
- Graph 12: Ordering method perception – dining in, 2024
- Attitudes
- Takeout/delivery services have room to improve on operational efficiency
- Takeout/delivery will need to offer more than convenience
- Graph 13: takeout/delivery attitudes – part 1, by generation, 2024
- Balancing convenience and trust in off-premise dining
- Graph 14: takeout/delivery attitudes – part 1, by dining preference, 2024
- Elevate takeout/delivery with thoughtful packaging
- Reach younger consumers with a personalized and aesthetic experience
- Graph 15: takeout/delivery attitudes – part 2, by generation, 2024
- Urban diners will splurge on improved off-premise dining
- Graph 16: takeout/delivery attitudes – part 2, by area, 2024
- Diners can’t quite justify the high cost of delivery
- Younger consumers embrace technology in dining choices
- Graph 17: takeout/delivery attitudes – part 3, by generation, 2024
- Transparency is key to building trust with urban diners
- Graph 18: takeout/delivery attitudes – part 3, by area, 2024
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Innovation and Marketing strategies
- Finding the next restaurant model requires a balancing act
- One location, many choices
- How do you win the food ordering competition?
- Directing consumers’ journey across the ordering process
- Hurry up and serve: catering to the instant gratification culture in foodservice
- Fast(er) food: Emphasizing speed in the takeout/delivery market
- The win-win approach to offering exclusive deals
- Restaurants x 3PD Apps: A look at collaborative deals
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Appendix
- Consumer research questions
- Consumer research methodology
- Generations
- Abbreviations and terms
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