Consumers
do not want to go grocery shopping, cook from scratch, and then do dishes as regular
readers of this blog know. Today
restaurant meals, grocery stores fresh prepared meals, and convenience store
meals are all offered for sale or delivery from third-party food delivery aggregator services according to Foodservice Solutions® Grocerant Guru®.
Steven Johnson our own Grocerant Guru® back in the day help
consolidate, edify, and expand the restaurant deliver service sector (RDS) with
Ford Smith the founder of Pet Smart, Food.Com, and EZ2Get.com where
the headwinds and undercurrents of change were predicting strong growth ahead
for the RDS sector.
Those
same headwinds and undercurrents continue today. In fact a new study by Mintel found that “87 percent of Americans who use
third-party food delivery services agree that it makes their lives easier, and
nearly one third (31 percent) say they use these services at least twice a
week.”
The RDS
sector is still relatively small. Mintel
found that only “12 percent of Americans say that they have used a third-party
delivery service in the past three months. Among non-users, three in 10 (30
percent) say that they would rather order delivery directly from the restaurant
itself, citing concerns over price, as more than one quarter (27 percent)
believe that delivery fees are too high. What’s more, some 23 percent of
non-users say they live in an area where these companies do not operate.” Thus
the opportunity for growth.
The
urbanization of America is driving Millennial’s in a new environment for most
that is from the ‘suburbs to cities’. Caleb Bryant, Foodservice Analyst at
Mintel stated that “Millennial men living in urban areas, indicating a need for
these companies to attract a more diverse consumer base. Delivery cannot
compete with the entire restaurant experience, but third-party companies can
work at increasing the incidence of restaurant delivery by highlighting the
benefits of having food delivered directly to the consumer,”
So what’s
important today to customers when it comes to meal delivery according to
Mintel:
1. Fast delivery (31 percent),
2. Restaurant selection (28
percent),
3. Low order minimums (27 percent)
4. First-use coupons (26 percent)
would motivate them to try it. However,
5. There may be no convincing the
older generations, as more than half (53 percent) of non-users age 55+ say
nothing would motivate them to use these services,
6. Despite hesitation from some
non-users, restaurant delivery users tend to have positive perceptions
surrounding delivered foods as two thirds (63 percent) agree that it is more
convenient to get delivery than dining out with a family.
7. Three in five (61 percent)
consumers say that restaurant delivery apps are easy to use,
8. While over one third (34 percent)
believe restaurant delivery is faster than picking up food themselves.
Many of
you who are regular readers of this blog remember Foodservice Solutions® 65 Inch HDTV Syndrome.
Well Mintel research reveals that “dinner and
a movie” is taking an untraditional spin as two in five (41 percent) consumers,
including well over half (57 percent) of Millennials, say that they have
restaurant food delivered so they can watch movies and TV shows at home…
Adding to
the perceived convenience factor of food delivery, the leading reason
restaurant delivery consumers have restaurant food delivered is so they don’t
have to leave their home (56 percent).” The team at Foodservice Solutions® maybe early
to sport a new foodservice trend, but when we do you just might wat to pick up
the clues we leave.
Foodservice Solutions® specializes in outsourced
business development. We can help you identify, quantify and qualify additional
food retail segment opportunities or a new menu product segment and brand and
menu integration strategy. Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche
visit Facebook.com/Steven Johnson, Linkedin.com/in/grocerant or twitter.com/grocerant
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