Food delivery crucial in the foodservice industry

Tuesday, 31 July, 2018

Food delivery crucial in the foodservice industry

With technology advancing and consumers increasingly looking for convenience, it is no surprise that food delivery is becoming more important.

A CREST study by global research company NPD Group found delivery equates to 4% of the foodservice industry in terms of spend ($1.6 billion).

NPD Deputy Managing Director for Asia Pacific Gimantha Jayasinghe said that mobile ordering and delivery apps play a key role in this developing market. While 63% of consumers order food via the internet, there is a preference for using a dedicated mobile app (72%).

Jayasinghe said the rising use of aggregators is resulting in independent outlets experiencing growth. According to NPD, there has been a 75% growth in traffic for quick service restaurant (QSR) pizza, with millennials responsible for 44% traffic share and families 38%. Millennials also accounted for 53% of the overall industry growth.

Delivery is also becoming important at all times of the day. Although dinner used to be the most popular meal to have delivered, there has been a recent increase in ordering food for breakfast and lunch as well.

Jayasinghe continued by suggesting that foodservice operators should cater towards these requirements and consider delivery as crucial to maintain their market share. This is especially important considering the potential threat supermarkets, convenience stores and petrol stations could pose in their attempts to compete for foodservice share.

“Millennials, the largest living generation, are shaping the industry and are a key group for increased spending power across the foodservice industry as a whole,” said Jayasinghe. “They are spending their money on quality, freshness and convenience, and their spending is very different from that of their parents.

“We know that it is convenience that consumers are on the lookout for when they seek out restaurants to visit and having a delivery option only serves to heighten that feeling of ultimate convenience. This is an area of the industry that will continue to experience substantial growth.”

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