15 statistics you should know before introducing deliveries!
If you are thinking about introducing deliveries in your restaurant, but a quiet voice in your head tells you that this may not be the best investment – ignore it! Delivery is the future of the industry, and in today’s article, we will try to prove it to you!
New consumer habits
Fast, convenient, immediately. These are the slogans that scream to us from the TV screen, from the radio, and from billboards that you pass on your way to work. The 21st century is a time of a comfortable consumer. A consumer who instead of rushing to the center and waiting for a free place in his favorite restaurant, prefers to stay in his pajamas and slippers surrounded by four walls of his apartment. He doesn’t need to move. In 30 minutes hot butter chicken will appear at his doorstep – today he wanted to grab Indian food.
What does this mean to You, restaurateur? This means that if you do not provide him the proverbial “butter chicken”, a restaurant around the corner will do it for you.
As an owner, you need to be up to date with how your clients’ needs change – and the changes are significant! Read our statistics, check how fast the online food order market is growing and how it can affect your business.
Is it profitable to introduce deliveries?
- Revenue is expected to show an annual growth rate (CAGR 2020-2024) of 6.8%, resulting in a market volume of €69,075m by 2024. Restaurateur – get the most out of this trend!
- In global comparison, most revenue is generated in the United States (€12,647m in 2020). (restaurant to consumer delivery). Second and third place was taken by Europe, with revenues of EUR 11.614 million and China – EUR 11.112 million.
- In 2012, in the USA, pizza has slowly given way to other takeaway dishes. In 4 years, the number of orders other than pizza increased by 33%
- 3.5B was invested in food delivery startups in 2018 alone. It is no coincidence that the food delivery market attracts people with extra cash in their pockets.
- The use of online food delivery options depends largely on age. 55% of people aged 18-24 have placed online at least one delivery order within a year. Think about it when you plan your promotional strategy. The results for individual age groups are presented in the table:
Should I associate with intermediaries?
- In restaurants that have their own drivers,one customer leaves an average of around $ 184 a year In restaurants that outsource delivery – around $ 121. The lower value of sales per customer cooperating with agents is the result of the commission they charge, which ranges from 10-30% of the value of each order. Forecasts for restaurants with their own fleet of drivers are very optimistic. Their profit is expected to grow $ 12 per client by 2023. Profit of restaurants cooperating with companies like UberEats will increase only by $ 8 per customer.
- 25% of restaurants say that they pay over 20% commission on the order to services like Grubhub.com. The commission can reach up to 30% if the restaurant uses its drivers. Only 16% of restaurants pay less than 10%. Each year the percentage collected by intermediaries is increasing.
- 82% of restaurant owners say the fees are too high and 33% say the fees make delivery unprofitable.
- In a survey conducted in 2017 in the USA 52% of customers used restaurant sales channels (e.g. websites or dedicated applications) to order delivery. The remaining 48% of consumers placed orders through portals such as Grubhub, UberEats or Delivery.com.
- In 2018, in a survey by Trendsourse, consumers declared that the likelihood of them ordering delivery through a restaurant’s sales channels is higher than using the sales channels of intermediaries. The results of the study are presented in the table:
Data indicates that having your own website or application can become more profitable than using third party services (see paragraphs 7-12 !!!).
What do consumers value in online orders?
11. The highest-volume days for the online platforms were Friday, Saturday, and Sunday, when 74 percent orders were placed.
12. 45% of consumers say that offering mobile ordering and loyalty programs would encourage them to order more often, which generates higher revenues.
In addition, the clients surveyed rated:
- loyalty programs,
- online reservations,
- mobile or web order-ahead
as restaurant technologies most important to their guest experience.
Meet their expectations:
- Give your guests the opportunity to order your dishes online. You can do this through your website or by using marketplace portals. You will learn the pros and cons of individual solutions here,
- Do you already have your website? Great! PAPU can help you start selling on it!
- Make the online booking option available on both your social media and website;
- Reward regular customers, and encourage the rest of the audience to visit more often through loyalty programs
13. On average, 60% of consumers say that the speed of delivery is a key factor impacting their satisfaction. It is estimated that the optimal waiting time should not be longer than 60 minutes – only 25% of customers are ready to wait more than an hour, and about 30% think that from the moment of placing the order to its delivery should not pass more than 30 minutes.
Interestingly, up to ⅓ of the respondents would be willing to pay more for delivery if it was faster. This is important information for You – the owner. If your customers are ready to pay more – give them a chance to do it. Think about introducing priority order status. Remember – its price should be rather high! You do not want to find yourself in a situation where dozens of orders are sent to you and each of them has to be completed at this very moment?
14. Almost three-quarters of delivery orders were still placed by phone.
15. 82 percent of orders were placed from home, while only 16 percent were placed from work
What should I do to see results?
Thanks for staying with us to the end! We hope you have learned something valuable. What you do with it depends entirely on you. You can shrug your shoulders and get back to your rhythm of the day forgetting what you read.
You can also find a way to use that knowledge and start working. Working a little slower but more precisely based on data.
At PAPU, we are aware that supply management is not a piece of cake. However, we know that the benefits far outweigh the costs.
- Loyalty programs, the ability to place an order online and reserve a table without calling – these are technologies you need to have in your restaurant
- Take care of fast delivery – control the delivery time and location of drivers with the right POS tool. The system integrates orders from various sources and automatically determines the delivery zone,
- Make sure that your offer includes promotions and discounts addressed to a younger group of customers,
- Diversify your sales channels. Use social media, websites, but don’t forget about the good old phone – it will still generate most of your orders.