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Description

Description

"With more delivery options than ever before, Americans can enjoy their favorite restaurant meals without even leaving their homes. And these new and unique ways of ordering are chipping away at actual restaurant visitation, fueled by the explosive growth of third-party delivery companies and continuing operator investment in their own ordering platforms. Younger consumers, Gen Zs in particular, are now dining more off-premise than on-premise, an indication that the delivery occasion shows no sign of slowing. Operators must adapt and invest in their online ordering platforms or risk becoming irrelevant."
- Hannah Spencer, Foodservice Analyst

This report looks at the following areas:

  • Older consumers aren’t as engaged in delivery services
  • Older consumers may be difficult to convert

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Top takeaways
          • The issues
            • Older consumers aren’t as engaged in delivery services
              • Figure 1: Restaurant delivery and pickup, by generation, September 2019
            • Older consumers may be difficult to convert
              • Figure 2: Delivery and pickup motivators– Any agree, by generation, September 2019
            • The opportunities
              • Investment in ordering and delivery platforms and partnerships is essential to remaining relevant
                • Figure 3: Restaurant delivery and pickup, June 2016, September 2018 and September 2019
              • Third-party partnerships offer versatility and ease
                • Figure 4: Third-party delivery company behaviors, by age, September 2019
              • Grubhub is still the most used app, but DoorDash is catching up fast
                • Figure 5: Third-party delivery company usage, September 2018 and September 2019
            • The Market – What You Need to Know

              • Meal kits offer inspiration, competition to operators
                • Entertaining at home appeals to younger consumers
                  • Lawmakers seek to regulate third-party delivery company operations
                  • Market Perspective

                    • Meal kits find a convenient sweet spot squaring against foodservice
                      • Figure 6: Home Chef Creative
                      • Figure 7: Home Chef Facebook post
                      • Figure 8: Sun Basket Facebook post
                      • Figure 9: Sun Basket Facebook post
                      • Figure 10: Freshly Facebook post
                  • Market Factors

                    • Gen Zs come of age
                      • Figure 11: Population, by generation, 2014-24
                    • The Netflix and chill effect
                      • Figure 12: Grubhub Instagram advertisement
                      • Figure 13: Postmates: We need you for the MMMmys 9/20/2019
                    • NY and CA officials look to regulate third-party delivery company operations
                    • Key Players – What You Need to Know

                      • Casual dining chains invest in delivery to boost struggling sales
                        • Domino’s bets on itself rather than third-party delivery company partners
                          • Operators look to virtual kitchens to feed delivery demand
                            • DoorDash significantly outspends all competitors on marketing
                            • What’s Working?

                              • Casual dining chains double down on delivery
                                • Figure 14: Chili’s: BIG news: Chili's now offers Delivery! 10/8/2019
                                • Figure 15: Outback Steakhouse: Free Sirloin Steak and 1 Side from Outback Steakhouse! 9/25/19
                              • Domino’s invests in itself, rather than partnerships
                                • Figure 16: Domino’s Pizza Facebook post
                            • What’s Struggling?

                              • Postmates delays its IPO after Uber’s IPO flops
                              • What to Watch

                                • Ghost kitchens proliferate
                                • Third-party Delivery Company Advertising Spend

                                  • DoorDash vastly outspends competitors
                                    • Figure 17: Online advertising spend volume for top four third-party delivery companies, January 1, 2019-October 15, 2019
                                    • Figure 18: Online advertising spend share by device for top four third-party delivery companies, January 1, 2019-October 15, 2019
                                    • Figure 19: Postmates Facebook post
                                • The Consumer – What You Need to Know

                                  • Americans are dining off-premise more than on-premise
                                    • Third-party delivery company usage continues to grow
                                      • Consumers order delivery for its convenience and comfort
                                        • Grubhub is still the most used app, but DoorDash is catching up fast
                                          • Seamless customers are among the most dedicated customers
                                          • Restaurant Delivery and Pickup

                                            • Americans are ordering in more and dining out less
                                              • Figure 20: Restaurant delivery and pickup in the past three months, June 2016, September 2018 and September 2019
                                            • Gen Z and Millennials drive off-premise sales
                                              • Figure 21: Restaurant delivery and pickup net usage in the past three months, by generation, September 2019
                                              • Figure 22: Restaurant delivery and pickup net usage in the past three months, by generation, September 2019
                                            • Third-party delivery companies appeal across generation
                                              • Figure 23: Restaurant third-party delivery company use, by generation, June 2016, September 2018 and September 2019
                                            • Hispanics are key delivery and pickup customers
                                              • Figure 24: Restaurant delivery and pickup net use, by race and Hispanic origin, September 2019
                                          • Restaurant Delivery and Pickup Motivators

                                            • Consumers order delivery for relaxation and convenience
                                              • Figure 25: Restaurant delivery and pickup motivators – Any agree, September 2019
                                              • Figure 26: Uber Eats Facebook post
                                              • Figure 27: Postmates: Free Delivery—Just Because 3/12/2019
                                              • Figure 28: Grubhub: Couch + pajamas + delivery = $15 off! 3/15/19
                                            • Gen Zs are willing to trade food quality for the convenience of delivery
                                              • Figure 29: Delivery and pickup motivators – Any agree, by generation, September 2019
                                              • Figure 30: Caviar: Skip the line and pay no fees 6/3/19
                                            • Seamless customers view delivery as being a good value
                                              • Figure 31: Delivery and pickup motivators – Any agree, by third-party delivery app usage, September 2019
                                            • Grubhub users are less likely to trade food quality for convenience
                                              • Figure 32: Delivery and pickup motivators – Any agree, by third-party delivery app usage, September 2019
                                          • Restaurant App Usage

                                            • Pizza restaurant websites and apps remain dominant services
                                              • Figure 33: Restaurant website and mobile ordering use, September 2019
                                            • Two thirds of consumers use more than one restaurant app
                                              • Figure 34: Repertoire of restaurant app use – Net: any app, September 2019
                                              • Figure 35: Repertoire of restaurant app use – Net: any app, September 2019
                                          • Third-party Delivery Company Use

                                            • Grubhub remains the most used, but DoorDash is catching up fast
                                              • Figure 36: Third-party delivery company use, September 2019
                                              • Figure 37: Third-party delivery company use, September 2018 and September 2019
                                            • Third-party delivery company customers are not loyal to one app
                                              • Figure 38: Repertoire of third-party delivery company app use, September 2019
                                              • Figure 39: Third-party delivery company app use, by repertoire of apps used, September 2019
                                          • Third-party Delivery Company Use Frequency

                                            • Third-party delivery users are frequent, weekly customers
                                              • Figure 40: Third-party delivery company use frequency, September 2019
                                            • Men are heavy third-party delivery company users
                                              • Figure 41: Third-party delivery company use frequency, by gender, September 2019
                                            • More than half of Seamless customers are ordering twice or more a week
                                              • Figure 42: Third-party delivery company use frequency, by third-party delivery app usage, September 2019
                                          • Third-party Delivery Company Behavior

                                            • More than half of third-party delivery company customers use apps as a discovery tool
                                              • Figure 43: Third-party delivery company behavior, September 2019
                                            • Attract younger consumers with diverse options
                                              • Figure 44: Third-party delivery company behavior, by age, September 2019
                                              • Figure 45: Grubhub Facebook post
                                            • Investing in third-party delivery app user experience is key to increasing usage among older consumers
                                              • Figure 46: Third-party delivery company behavior, by age, September 2019
                                          • Important Third-party Delivery Company Features

                                            • Affordability and speed are essential
                                              • Figure 47: Important third-party delivery company features, September 2019
                                            • DoorDash customers most likely to prioritize fast delivery
                                              • Figure 48: Important third-party delivery company features, by third-party delivery company usage, September 2019
                                            • Grubhub customers care about cost
                                              • Figure 49: Important third-party delivery company features, by third-party delivery company, September 2019
                                              • Figure 50: Grubhub Facebook post
                                            • ChowNow customers most interested in subscription delivery programs
                                              • Figure 51: DoorDash: You’re getting DashPass FREE for 30 days—here you go! 8/7/2019
                                              • Figure 52: Important third-party delivery company features, by third-party delivery company, September 2019
                                            • Seamless and Ritual customers most interested in loyalty programs
                                              • Figure 53: Important third-party delivery company features, by third-party delivery company, September 2019
                                          • Price Sensitivity Analysis

                                            • Consumers’ delivery fee expectations are not dependent on menu item costs
                                                • Figure 54: Price sensitivity summary table, September 2019
                                            • Appendix – Data Sources and Abbreviations

                                              • Data sources
                                                • Consumer survey data
                                                  • Behavioral data
                                                    • Direct marketing creative
                                                      • Abbreviations and terms
                                                        • Abbreviations
                                                        • Appendix – The Consumer

                                                            • Figure 55: Price sensitivity – Large single-topping pizza from fast food pizza chain – Optimal price, September 2019
                                                            • Figure 56: Price sensitivity – Large single-topping pizza from fast food pizza chain – Threshold prices, September 2019
                                                            • Figure 57: Price sensitivity – Large single-topping pizza from fast food pizza chain – Price sensitivity aggregate table, September 2019
                                                            • Figure 58: Price sensitivity – Large single-topping pizza from local sit-down Italian restaurant – Optimal price, September 2019
                                                            • Figure 59: Price sensitivity – Large single-topping pizza from local sit-down Italian restaurant – Threshold prices, September 2019
                                                            • Figure 60: Price sensitivity – Large single-topping pizza from local sit-down Italian restaurant – Price sensitivity aggregate table, September 2019
                                                          • Repertoire Analysis Methodology

                                                          This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

                                                          • Market

                                                            Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

                                                          • Consumer

                                                            Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

                                                          • Brand/Company

                                                            Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

                                                          • Data

                                                            Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

                                                          Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

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