FAQs: New Delivery Demands

When the pandemic hit, foodservice establishments rapidly adopted delivery infrastructure to ride out the disruption. For many, it worked. So much so that consumers rely on delivery today more than ever. But with rising inflation, consumers are taking a hard look at delivery to determine if it is worth the expense and compromise in food quality. For operations that have come to rely on delivery as an essential part of their revenue stream, this is raising some important questions about what to do next.

Here are some As to frequently asked delivery Qs that all kinds of operations have been wrestling with.

 

Q: Is delivery still growing?

A: Yes. According to a 2023 Datassential trend report, delivery exploded at the onset of COVID and it hasn’t stopped growing since.1

Q: Why do consumers order delivery?

A: Most consumers are looking for quick quality when ordering food for either carryout or delivery. They are primarily concerned with efficiency and value for their money, with good overall value being the top consideration.2

Q: Who orders online delivery?

A: 66% of consumers have ordered food online for delivery. This is highest among Gen Z at 85%, followed by millennials at 74%, while 65% of Gen X have ordered food online and 44% of boomers. 34% of consumers who order delivery say they prefer online ordering over ordering over the phone.1

Q: How many restaurants offer delivery?

A: 51% of restaurants offer delivery as an option. Nearly 70% of restaurants that provide digital ordering partner with third-party services like Uber Eats or DoorDash to deliver food to customers, while 1 in 5 hire delivery drivers.1

Q: How much do operators make from delivery?

A: Both first-party and third-party operations estimate 20% of their sales come from delivery.3

Q: What foods hold up best when delivered?

A: Pizza (70%), chicken (50%), burgers (47%) and sandwiches (45%) are perceived to hold up best during delivery, suggesting opportunities for operators to refine their delivery menus to match these preferences.3

Q: How long are guests willing to wait?

A: Consumers expect delivery to be quick and seamless and are willing to wait an average of 32 minutes.2

Q: Do guests expect delivery & dine-in options to be the same?

A: Most do: 81% expect the same menu items for delivery as for dine-in, but only 53% of operators meet this expectation.3

Q: What issues do guests have with the ordering process?

A: 32% wish there were more menu pictures1 30% find it difficult to customize orders online1 23% wish they could interact with a human while ordering1 17% say they have to scroll through too many options1

Q: What issues do guests have when the order arrives?

A: 29% report poor quality or damaged orders1 22% say menu descriptions are inaccurate1 19% frequently receive incorrect orders1

Q: Is delivery too expensive?

A: 51% of guests say delivery is too expensive (and 39% abandon their carts when they see the price).1

Q: Is non-commercial delivery a thing?

A: Yes! The growing demand has driven all kinds of operations to embrace delivery, especially in C&U, Healthcare and C-Stores.2

Q: Is there demand for delivery in C&U?

A: 50% of students now desire more on-campus cafeterias and restaurants to offer delivery, up from 48% in 2021.5

Q: Are C&U delivery robots real?

A: Yes! With companies like Kiwibot partnering with major players like Sodexo and Grubhub, delivery robots are gaining traction on campuses. At campuses across the country, many have come to rely on food-delivery robots for round-the-clock sustenance outside the confines of a dining hall. In a 20-campus study conducted last year by another robotics company, 78% of students said they loved the robots, and a majority reported that they helped them to study more and reduce skipped meals.6

Q: What’s a “food pharmacy?”

A: Healthcare foodservice operators are leaning into “food as medicine” to expand beyond the walls of their hospitals and create additional revenue streams. These “food pharmacy” programs offer fresh, therapeutic ingredients or prepared meals aligned with specific needs. One startup, Bitwell, has given members access to condition-friendly groceries and pre-made meals through a participating health plan, wellness program or provider.7

Q: Are consumers ordering c-store delivery?

A: Yes! Thanks to the success of programs like 7-Eleven’s 27/7 delivery and Rutter’s Uber Direct delivery partnership, c-stores are increasing their presence on delivery platforms to compete with quick-service restaurants and grocery delivery, reflecting a shift in consumer convenience expectations.8

Q: How can I improve the delivery experience?

A: Ensure order accuracy

Create systems for packing delivery orders to ensure the order is correct and there are no missing items. Consistently verifying orders before they leave the kitchen will help reduce mistakes and build trust, leading to higher repeat business.

Pay attention to packaging

Invest in packaging solutions that maintain food quality during transit and consider separating elements to improve travel. For example, packaging that separates burger toppings and condiments from the rest of the sandwich can keep the meal fresh and customizable, helping to replicate the dine-in experience.

Place an order

Place an order from your own system to see where improvements can be made. Ensure you organize offerings in an easy-to-navigate and easy-to-customize way. Invest in menu photography to heighten appeal and avoid mealtime surprises.

Own the experience

Consider branded stickers and seals, interactive packaging with elements like QR codes, storytelling labels that highlight unique ingredients or production processes, or creative instructions for reheating or repurposing leftovers

12023Datassential 2024 Trends Report, December 2023

2Technomic, Industry Insights, August 2024

3Technomic, Consumer & Operator Outlook Report Q2 2024 (July 2024)

4Technomic, Consumer Food Trends: Delivery & Takeout, November 2024

5Technomic, College & University Multi-Client Study, June 2023

6Foodservice Director, Food-delivery robots and college students: a match made in high-tech heaven, August 2024

7Fierce Healthcare, Food-as-medicine startup Bitewell unveils personalized online store for members to buy healthy food, January 2024

8Convenience Store News, C-store Operators Face a New Convenience Imperative, October 2023

9Technomic, C-Store Foodservice Digest 2024: Cracking the Code on Growth, Q3 2024 (September 2024)

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