Food Delivery: The Rise of a Retail Channel All Its Own

 

In the 1990s, the seeds of food delivery's evolution were planted by pioneering companies like CyberSlice.com, Webvan.com, CyberMeals.com, Food.com, and EZ2Get.com. Though many of these startups were ahead of their time—challenged by sluggish internet speeds, underdeveloped logistics infrastructure, and underwhelming funding—they laid the foundational marketing and operational frameworks for what has today become a thriving standalone food channel.

Steven Johnson, the Grocerant Guru® at Foodservice Solutions®, was among the early visionaries who recognized food delivery’s potential as a distinct sector. Johnson's early work helped set the stage for today's dynamic market environment, where food delivery is no longer a novelty but an essential pillar of the foodservice and retail landscape.

 

From Pioneering Dreams to Mainstream Demand

Fast forward to today, and the evolution of food delivery has gone from nascent experiments to a retail juggernaut, transforming how consumers interact with restaurants, grocery stores, and meal solutions.

According to a comprehensive study by The NPD Group (Circana)

·       Delivery sales have risen 20% over the past five years.

·       Delivery foodservice visits increased by 10%.

·       Digital ordering now accounts for more than half of all delivery orders.

The smartphone revolution was the critical inflection point. As Johnson aptly puts it,

“Smart mobile phone ordering changed everything.”

Consumer behavior adapted swiftly; with a few taps, meals arrived at doorsteps, offices, and events, creating an expectation of ease, speed, and convenience.

NPD’s Senior VP of Industry Relations, Warren Solochek, emphasized the permanent nature of this shift:

"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."

 

Delivery Expanding Beyond Dinner

Interestingly, while dinner traditionally dominated delivery orders, recent data shows that:

·       Breakfast and lunch delivery orders have experienced significant growth, while dinner delivery has remained flat.

·       Consumers now expect delivery options throughout the entire day, not just during evening hours.

Phone orders still represent 49% of delivery visits, but digital platforms—especially those run by third-party services like Uber Eats, Grubhub, and DoorDash—continue to grow their share, particularly among full-service restaurants. In fact, full-service establishments use third-party delivery services at twice the rate of quick-service outlets.

 

The New Electricity of Food Retail

Today, food delivery has matured into an indispensable food channel much like traditional retail, drive-thru, or grocery. It's not simply an extension of a restaurant's service—it's a distinct sales and marketing ecosystem of its own.

Companies that once hesitated to embrace delivery are now recognizing it as their "new electricity"—a force that powers growth, customer loyalty, and brand relevance. Third-party services, proprietary apps, and hybrid delivery models (like ghost kitchens and cloud grocery stores) are reshaping how the food industry defines customer service and product availability.

Here’s a look at who’s leading this transformation:

Five Food Delivery Companies Making a Big Mark

Top Food Delivery Companies	Top Restaurant Chains Winning with Delivery/Takeout
DoorDash - 65% U.S. market share	Chipotle - 30% of revenue from delivery
Uber Eats - 45+ countries	Wingstop - 65%+ of sales from delivery/digital
Instacart - expanding into hot meals	Panda Express - aggressive direct delivery expansion
Grubhub - pioneer of delivery loyalty programs	Papa John’s - 75%+ of sales from off-premise
Gopuff - 30-min convenience & meals	Sweetgreen - heavy investment in digital kitchens

Highlights:

·       DoorDash has firmly secured its position with over 65% U.S. market share, especially by expanding into grocery and convenience food delivery.

·       Uber Eats operates across 45+ countries, creating massive global delivery networks.

·       Instacart is bridging grocery and fresh meal delivery, partnering with restaurants inside supermarkets.

·       Grubhub has led the way with delivery subscription loyalty programs.

·       Gopuff has redefined convenience delivery with under 30-minute fulfillment times, merging snacks, essentials, and fresh meals.

Meanwhile, top restaurants embracing delivery success include:

·       Chipotle, with digital orders now representing 30% of revenue, especially boosted by its "Chipotlanes."

·       Wingstop, where 65%+ of all sales now come through digital and delivery channels.

·       Panda Express, expanding rapidly with its proprietary delivery options.

·       Papa John’s, where delivery and takeout make up 75%+ of total sales.

·       Sweetgreen, innovating with delivery-focused digital-only kitchens.

 

What Comes Next?

Circana forecasts further growth for delivery over the next five years, particularly sourced from non-traditional outlets and expanded dayparts.

Companies that wish to thrive must act now:

·       Complete a Grocerant ScoreCard or a Program Assessment.

·       Pursue Grocerant Niche Product Ideation to stay relevant.

·       Align operations and marketing around consumer expectations of seamless delivery and fresh food innovation.

Success leaves clues, and Foodservice Solutions® can help brands identify, quantify, and qualify the right growth opportunities to win in this new era.

For those seeking to lead in the ever-expanding delivery market, the question isn’t “Should we focus on delivery?” — it’s “How can we dominate delivery?”

Success Leaves Clues—Are You Ready to Find Yours?

One key insight that continues to drive success is this: "The consumer is dynamic, not static." This principle is the foundation of our work at Foodservice Solutions®, where Steven Johnson, the Grocerant Guru®, has been helping brands stay relevant in an ever-evolving market.

Want to strengthen your brand’s connection with today’s consumers? Let’s talk. Call 253-759-7869 for more information.

Stay Ahead of the Competition with Fresh Ideas

Is your food marketing keeping up with tomorrow’s trends—or stuck in yesterday’s playbook? If you're ready for fresh ideations that set your brand apart, we’re here to help.

At Foodservice Solutions®, we specialize in consumer-driven retail food strategies that enhance convenience, differentiation, and individualization—key factors in driving growth.

👉 Email us at Steve@FoodserviceSolutions.us
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