Foodservice delivery is winning visits at the expense of restaurant drive-thrus, reports The NPD Group, a research and information company.
Over the past four years, delivery has grown by 69 million visits (orders), while drive-thru traffic fell by 128 million visits from May 2012 through May 2016, according to a recently released NPD report on foodservice delivery.
The growth in foodservice delivery is even greater when pizza delivery is taken out of the equation. Pizza delivery still makes up more than 60 percent of foodservice delivery visits, but traffic has declined by double-digits over the last four years. Consumers instead are ordering delivery from a variety of restaurants, including quick-service Asian and burger, full service and fast casual, according to the NPD.
Foodservice delivery options are especially important to Gen Z and Millennials. Currently, these two groups represent 51 percent of the U.S. population, a large target group who will drive the growth in delivery far into the future. These consumers want to eat their favorite foods when they want it, regardless of where they are, as well as order and pay for it with the click of a button.
“If delivery fits a restaurant operator’s business model and is operationally feasible, now is the time to consider adding it as an option for customers,” said Bonnie Riggs, NPD restaurant industry analyst.
She added, “It’s one way to stay competitive and relevant in a low growth foodservice environment. However, before moving ahead with a delivery program, it is important to understand the growth opportunity along with the potential barriers to use that might exist from the consumer perspective.”
