Is Food Delivery a Retail Channel of its Own

Amazon, Grubhub, Postmates, Instarcart, the list goes on and on for many of our readers you remember the start-up’s that were just a bit too early and a bit underfunded and internet speeds were simply to slow companies the ilk of CyberSlice.com, Webvan.com, CyberMeals.com, Food.com, and EZ2Get.com and you remember that Foodservice Solutions® Grocerant Guru® Steven Johnson was there at the beginning of most of those building the marketing foundation that is now a retail channel of its own Fresh Food Delivery.

O’ how times have changed Delivery is 'delivering' sizable gains in both visits and sales over the last five years for restaurant operators, according to a new NPD Group study on delivery. The research company said that both a 20 percent increase in delivery sales and 10 percent gain in delivery foodservice visits were buttressed largely by the growth of digital ordering, which now represent over half of all delivery visits. In short smart mobile phone ordering changed everything according to Johnson.

NPD Senior VP of Industry Relations Warren Solochek  stated "Delivery has become a need to have and no longer a nice to have in the restaurant industry,"… "Restaurants need delivery in today's environment in order to gain and maintain share.  It has become a consumer expectation." 

This is important the study found “Consumers are so accustomed to ordering delivery that they are ordering it at breakfast and lunch in addition to dinner, which historically has been the most popular daypart to order it.”

Yes, the “Growth of delivery at dinner has remained flat over the last five year and has grown at breakfast and lunch. Although digital ordering is a major contributor to the growth of foodservice delivery, using the phone to order still represents 49 percent of delivery visits.” 

Third party delivery services, like UberEats, Grubhub and DoorDash, account for much of the digital delivery growth. However, the share of digital delivery by third party services is more than double among full service restaurants than quick service outlets. NPD forecast that delivery will grow over the next five years and the growth with source to non-traditional delivery outlets and dayparts,"

Do you now how to make delivery your New Electricity to drive sales? Success does leave clues www.FoodserviceSolutions.us  is the global leader in grocerant niche business development.  We can help you identify, quantify and qualify additional food retail segment opportunities.  Has your company had a Grocerant ScoreCard completed a Grocerant Program Assessment, or new Grocerant niche product Ideation?  Want one?  Call 253-759-7869 Email: Steve@FoodserviceSolutions.us