Food delivery now a ‘must have’ for Millennials and families
Demand driven by Millennials and families has pushed food delivery from a “nice to have” to a “must have” option in the foodservice industry.
Despite the recent announcement that Foodora is to quit Australia this month, food delivery now equates to 4 per cent of the foodservice industry in terms of spend ($1.6 billion), according to a CREST study by global research company NPD Group.
NPD’s research shows that strong growth in the food delivery category is heavily reliant on the Millennial customer as well as families who are looking for the convenience of to-the-door service. Technologies like mobile ordering and third-party delivery apps are playing a key role in making eating more convenient for Millennials and families alike.
“The use of aggregators is on the rise and this is resulting in independent outlets experiencing growth, as well as the non-traditional players such as the burger category,” said Gimantha Jayasinghe, NPD deputy managing director – Asia Pacific.
A key driver of growth in the burger category has been the development of deal-based occasions and the option of the meal combo, which make food-based decisions even easier. A leader in the food delivery space, QSR Pizza, has experienced 75 per cent growth in terms of traffic, largely driven by the Millennial age group with 44 per cent traffic share, as well as families who hold 38 per cent of traffic in this category. Millennials drove growth across a large number of categories this year, accounting for 53 per cent of the overall industry growth.
“Foodservice operators seeking to increase and maintain their market share should carefully consider delivery as a ‘need to have’ to attract Millennials and families, who are responsible for driving the growth in this sector,” said Jayasinghe. “Having a delivery option really has become a consumer expectation, as their need and desire for convenience continues to grow.”
Source: Sheridan Randall, 6th August 2018
