Increased Food Delivery Demand Changing Restaurant Industry From The Inside

Nevin Barich

Nevin Barich

LOS ANGELES , May 1, 2018 () – I recently had a craving for a Big Mac so I went to my local McDonald’s to satisfy the urge. The drive-thru line was long, so I decided to park and order inside. But as I was getting out of my car after parking, I noticed a McDonald’s worker rushing toward my car.

“Sir, sir, I’m sorry,” he said, “but can’t park here.”

“Why can’t I park here?” I asked.

Because this is for Uber delivery pickup only,” the worker said.

And that’s when I saw it: I had parked my car in a row of spaces specifically for Uber drivers who are picking up McDonald’s orders for their customers.

Customers are increasingly ordering food through apps on their smartphones or by calling in. Restaurants, from quick-service chains like Panera Bread to sit-down eateries such as Applebee's, are ramping up or diving into delivery for the first time to meet the demand of diners.

And that demand for deliveries is dramatically changing the restaurant industry. In the last five years, revenue from deliveries jumped 20% and the overall number of deliveries increased 10%, according to The NPD Group. Besides having to redesign restaurants to take delivery into account, the phenomenon is enticing restaurants to modify menus and pick ingredients that hold up well during travel. 

“Convenience is among the chief reasons why consumers visit restaurants and delivery brings a heightened level of it,” Warren Solochek, NPD's senior vice president, said in a statement.  “Restaurants need delivery in today’s environment in order to gain and maintain share. It has become a consumer expectation.” 

Diners are increasingly asking for their food to be dropped off not only for dinner, but for breakfast and lunch as well. Delivery of breakfast or morning snacks soared 13% between 2012 and 2017, while lunch deliveries ticked up 3%, NPD says. 

Restaurants aren’t fighting the change toward more delivery. They’re embracing it.

Nevin Barich is the Food and Beverage Analyst for Industry Intelligence, which can help YOU better address your own industry challenges. We invite you to come take a look at our service. Call us today at 310-553-0008 and we’ll schedule you for a 15-minute demo.

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