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US The Online Foodservice Consumer market report

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the The Online Foodservice Consumer market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry and how fast are its rates of growth? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Definition

This Report covers the use of/attitudes surrounding restaurant delivery in general as well as third-party restaurant delivery services. It covers changes in the restaurant delivery market, thirdparty restaurant delivery email marketing, and the utilization of social media by third-party restaurant delivery companies. While pizza restaurant delivery is covered briefly in the Report, pizza restaurants are not the focus of this Report.

This Report mentions companies that offer delivery of items other than restaurant food (eg Delivery.com); however, this Report only focuses on the restaurant portion of delivery companies.

This Report builds off of The Online Foodservice Consumer – US, August 2015.

The following terms are used throughout the Report:

  • Third-party restaurant delivery company: Refers to any company that delivers meals from a restaurant to the consumer. These companies typically partner with restaurants and provide a platform (eg website, app) from which consumers can order food. Once the consumer orders food online, it is delivered by a contracted courier. Examples of these companies include: GrubHub, Seamless, Postmates, UberEATS, Delivery.com, etc.
  • Virtual restaurants: Refers to restaurants that have no brickand-mortar location and only offer delivery. Meals are prepared in a commercial kitchen and delivered straight to the consumer. Examples of virtual restaurants include: Sprig, Munchery, Galley, etc.

Expert analysis from a specialist in the field

Written by Caleb Bryant, a leading analyst in the Foodservice sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Delivery is an exciting new opportunity within foodservice as the rise of third-party restaurant delivery companies makes it possible for nearly every restaurant to deliver directly to consumers, an occasion long dominated almost exclusively by pizza restaurants. While the restaurant delivery market is growing, the future of restaurant delivery is unclear as many of these third-party restaurant delivery companies are operating in a crowded market. Consumers do enjoy the convenience of ordering in, but the added costs of delivery prevent it from becoming a more frequent occasion. Caleb Bryant
Senior Foodervice Analyst

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Overview
          • The issues
            • Third party delivery usage remains low
              • Figure 1: Restaurant delivery & carry out net usage in the past three months, September 2018
            • Room to improve delivery quality and perceived value
              • Figure 2: Delivery and carry out statement agreement, September 2018
            • The opportunities
              • Delivery and carry out appeal to busy consumers
                • Figure 3: Delivery and carry out motivators, September 2018
              • Third party delivery company usage frequency is high
                • Figure 4: Third party delivery company ordering frequency, September 2018
              • iGens are important delivery customers
                • Figure 5: Restaurant delivery & carry out net usage in the past three months, by generation, September 2018
              • What it means
              • The Market – What You Need to Know

                • iGens are important delivery and carryout customers
                  • Smartphone apps usage is almost universal
                    • Meal kits are being reinvented
                    • Market Perspective

                      • Meal kits become more convenient
                        • Restaurants lure customers on premise with to-go options
                        • Market Factors

                          • Almost all Americans use smartphone apps
                            • Figure 6: Smartphone app usage over time, 2015-18
                          • Cater to iGens
                            • Figure 7: Population by generation, 2013-23
                          • FSRs experience slowed growth
                            • Figure 8: Total US revenues and fan chart forecast of full-service restaurants, at current prices, 2013-23
                        • Key Players – What You Need to Know

                          • Third party delivery companies drive off-premise growth
                            • QSRs find success through delivery partnerships
                              • Pizza restaurants remain leaders in delivery innovation
                                • Subscription and loyalty programs provide value
                                • What’s Working?

                                  • Third party delivery companies continue to expand their reach
                                    • Off-premise sales help casual dining restaurant sales
                                      • QSRs boost incremental sales through delivery partnerships
                                        • Figure 9: Uber Eats promotional email, May 10, 2018
                                      • Pizza restaurants continue to lead in delivery sales and tech innovation
                                      • What’s Struggling?

                                        • Restaurants and third party delivery companies define their relationship status
                                        • What’s Next?

                                          • POS integration streamlines delivery
                                            • Delivery loyalty and subscription services expand
                                              • Third party delivery companies become a discovery portal
                                                • Alcohol and food delivery merge
                                                • Third Party Delivery Company Email Marketing

                                                  • Weekends are a key time for delivery promotions
                                                    • Figure 10: Third party delivery company Read Rate & Volume, by day of the week (Dec ’17-May ’18)
                                                  • High volume does not necessarily translate to high engagement
                                                    • Figure 11: Third party delivery company Read Rate & Volume, by company (Dec ’17- May ’18)
                                                  • Third party delivery companies find new ways to stand out in inboxes
                                                    • Figure 12: Amazon Restaurant May 2018 Newsletter
                                                    • Figure 13: Doordash promotional email, March 24, 2018
                                                    • Figure 14: Caviar promotional email, May 19, 2018
                                                    • Figure 15: Postmates promotional email, December 10, 2017
                                                • The Consumer – What You Need to Know

                                                  • On-premise dining isn’t going away
                                                    • The majority of consumers order directly from restaurants
                                                      • Younger generations view delivery differently
                                                        • Third party delivery usage is low, but has high frequency users
                                                          • Grubhub is most used app, but DoorDash has the most frequent users
                                                          • Restaurant Delivery and Carry Out Usage

                                                            • Consumers prefer to order directly from restaurants
                                                              • Figure 16: Restaurant delivery & carry out nets usage in the past three months, September 2018
                                                              • Figure 17: Restaurant delivery usage in the past three months, June 2016 and September 2018
                                                            • Younger consumers drive delivery
                                                              • Figure 18: Restaurant delivery & carry out net usage in the past three months, by generation, September 2018
                                                              • Figure 19: On-premise vs at-home associations - delivery, by generation, July 2018
                                                            • More generations are ordering via third party delivery companies
                                                              • Figure 20: Restaurant third party delivery company usage in the past three months, by generation, June 2016 and September 2018
                                                            • Urban areas utilize more third party delivery and carry out
                                                              • Figure 21: Restaurant delivery & carry out net usage in the past three months, by area, September 2018
                                                              • Figure 22: Third party delivery company behaviors, by area, September 2018
                                                            • Middle income drive delivery and carry out
                                                              • Figure 23: Restaurant delivery & carry out net usage in the past three months, by household income, September 2018
                                                              • Figure 24: On-premise vs at-home associations – delivery, by household income, July 2018
                                                            • Parents use more delivery and carry out
                                                              • Figure 25: Restaurant delivery & carry out net usage in the past three months, by parental status, September 2018
                                                            • Multicultural marketing is important for delivery and carry out
                                                              • Figure 26: Restaurant delivery & carry out net usage in the past three months, by race and Hispanic origin, September 2018
                                                              • Figure 27: On-premise vs at-home dining behavior, by race & Hispanic origin, July 2018
                                                              • Figure 28: Adventurous eater segmentation, by race, July 2018
                                                          • Delivery and Carry Out Motivators

                                                            • Convenience drives delivery and carry out usage
                                                              • Figure 29: Delivery and carry out motivators, September 2018
                                                            • Younger generations more likely to order delivery and carry out to treat themselves
                                                              • Figure 30: Delivery and carry out motivators, by generation, September 2018
                                                              • Figure 31: Delivery and carry out motivators, by generation, September 2018
                                                            • Single adults have unique delivery and carry out motivators
                                                              • Figure 32: Delivery and carry out motivators, by parental status, September 2018
                                                          • Delivery and Carry Out Statement Agreement

                                                            • Consumers overall positive about delivery and carry out
                                                              • Figure 33: Delivery and carry out statement agreement – any agree, September 2018
                                                            • Consumers more positive about delivery over time
                                                              • Figure 34: Delivery and carry out statement agreement – Any agree, September 2018; June 2016
                                                            • Younger consumers view third party apps more positively
                                                              • Figure 35: Delivery and carry out statement agreement – Any agree, by generation, September 2018
                                                              • Figure 36: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
                                                              • Figure 37: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
                                                              • Figure 38: Delivery and carry out statement agreement – any agree, by third party delivery app usage, September 2018
                                                            • Younger consumers interested in more restaurant options for delivery
                                                              • Figure 39: Delivery and carry out statement agreement – Any agree, by generation, September 2018
                                                              • Figure 40: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
                                                              • Figure 41: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
                                                            • Amazon Prime Now app users dissatisfied with food quality
                                                              • Figure 42: Delivery and carry out statement agreement – any agree, by third party delivery app usage, September 2018
                                                              • Figure 43: Delivery and carry out statement agreement – any agree, by third party delivery app usage, September 2018
                                                              • Figure 44: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
                                                              • Figure 45: Delivery and carry out statement agreement – Any agree, by third party delivery app usage, September 2018
                                                          • Restaurant App Usage

                                                            • Pizza restaurants still are most ordered from
                                                              • Figure 46: Restaurant website and mobile ordering usage in last three months, September 2018
                                                            • Urban consumers order from greater number of restaurant types
                                                              • Figure 47: Restaurant website and mobile ordering usage in last three months, September 2018, by area, September 2018
                                                            • Men are more interested in a variety of restaurant ordering platforms
                                                              • Figure 48: Restaurant website and mobile ordering usage in last three months, September 2018, by gender and age, September 2018
                                                            • Consumers split on mobile versus online ordering from restaurants
                                                            • Third Party Delivery Company Usage

                                                              • Grubhub remains top used third party delivery company
                                                                • Figure 49: Third party delivery company usage, September 2018
                                                              • Urban consumers utilize more app types
                                                                • Figure 50: Third party delivery company usage, by area, September 2018
                                                              • Men utilize more app types
                                                                • Figure 51: Third party delivery company usage, by gender, September 2018
                                                              • Parents are less likely to use Grubhub compared to competitor apps
                                                                • Figure 52: Third party delivery company usage, by parental status, September 2018
                                                              • Millennials use the greatest number of third party delivery companies
                                                                • Figure 53: Third party delivery company usage, by generation, September 2018
                                                            • Third Party Delivery Company Frequency

                                                              • Third party delivery company usage frequency is high
                                                                • Figure 54: Third party delivery company ordering frequency, September 2018
                                                                • Figure 55: Third party delivery company ordering frequency, July 2016 and September 2018
                                                              • Men order more delivery
                                                                • Figure 56: Third party delivery company ordering frequency, by gender, September 2018
                                                              • DoorDash has the most heavy users
                                                                • Figure 57: Third party delivery company ordering frequency, by third party delivery app usage, September 2018
                                                            • Third Party Delivery Company Important Factors

                                                              • Speed is crucial to customers
                                                                • Figure 58: Third party delivery company motivators, September 2018
                                                                • Figure 59: Third party delivery company motivators, June 2018 and September 2018
                                                              • Postmates customers prioritize speed and cost
                                                                • Figure 60: Third-party delivery company motivators, by third party delivery company, September 2018
                                                                • Figure 61: Third party delivery company motivators, by third party delivery company, September 2018
                                                              • Uber Eats customers interested in tracking orders in real time
                                                                • Figure 62: Third party delivery company motivators, by third party delivery company, September 2018
                                                              • Grubhub customers are interested in more selection and variety
                                                                • Figure 63: Third party delivery company motivators, by third party delivery company, September 2018
                                                              • Amazon Prime Now customers most interested in loyalty programs
                                                                • Figure 64: Third party delivery company motivators, by third party delivery company, September 2018
                                                              • DoorDash customers prioritize good customer service
                                                                • Figure 65: Third party delivery company motivators, by third party delivery company, September 2018
                                                            • Third Party Delivery Company Behaviors

                                                              • Third party delivery company users are interested in choice
                                                                • Figure 66: Third party delivery company behaviors, September 2018
                                                              • Third party delivery company users are interested in ordering alcohol
                                                                • Postmates customers are familiar with using the app
                                                                  • Figure 67: Third party delivery company behaviors, by Third party delivery company, September 2018
                                                                  • Figure 68: Third party delivery company behaviors, by third party delivery companies, September 2018
                                                                • Grubhub customers are searching for more options
                                                                  • Figure 69: Third party delivery company behaviors, by third party companies, September 2018
                                                                  • Figure 70: Third party delivery company behaviors, by third party companies, September 2018
                                                                • DoorDash customers are utilizing more restaurants and carry out
                                                                  • Figure 71: Third party delivery company behaviors, by third party companies, September 2018
                                                                • Uber Eats customers are the least loyal
                                                                  • Figure 72: Third party delivery company behaviors, by third party companies, September 2018
                                                              • Appendix – Data Sources and Abbreviations

                                                                • Data sources
                                                                  • Sales data
                                                                    • Fan chart forecast
                                                                      • Consumer survey data
                                                                        • Consumer qualitative research
                                                                          • Direct marketing creative
                                                                            • Abbreviations and terms
                                                                              • Abbreviations
                                                                                • Terms