This is an excerpt from Big 7 Media‘s 100-page report on The Future of the Restaurant Industry in 2020.
This detailed report provides current operational guidance and insight into emerging hospitality trends for 2020-21. We investigate the trends that are impacting the industry, both currently and in the future. You will learn: how to increase sales, current and future trends, supply chain issues and more.
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Food Delivery Trends For Restaurants
Food delivery for restaurants was tipped to rise even before the pandemic. In 2019, the US food delivery market totalled $22 billion in revenue, and is expected to grow to $31 billion by 2023.89 While usage was cooling off a little (monthly usage of DoorDash, Caviar, Uber Eats, Grubhub, Seamless, and Postmates had dropped by 13.3%90), innovation in the market was driving it forward. Major restaurant chains, such as McDonald’s, began launching delivery-only brands that sell through food aggregators such as GrubHub and UberEats.
For an industry that thrives on delivering food to people at home, it’s clear to see why delivery companies are busier than ever. Since the start of the pandemic, delivery platform Meituan has hired more than 450,000 new drivers across China.91 Food delivery in the US grew as a whole by 14%, with DoorDash coming out on top.92 This was thanks to its move to sign up smaller restaurants, and by cutting its commission fees by 50% for independent restaurants.93 As restaurants were forced to close, they needed another sales outlet – and fast. Third-party apps in Australia grew their users from 4 million to 6 million during the peak of the pandemic.
The demand is clearly there; digital restaurant orders increased by 63% and delivery by 67% in March.94 However, not everyone can hustle in on the delivery game. Restaurants that previously focused on delivery are faring much better than restaurants who, until recently, were more focused on dine-in. Yelp data95 shows that chicken-wing places and pizzerias have gained (due to demand for comfort food), while French restaurants, tapas places, and hot-pot spots have dropped. Sharing dishes are unpopular in a contactless climate.
Big 7 Media Report: The Future of the Restaurant Industry in 2020 – Download Here
Table of Contents:
- Restaurant Industry Overview
- Covid-19: Steps & Barriers to Reopening
- Produce Supply Chain: Impact on Menu Model
- Key Trends & Developments in Restaurant Sectors
- Food Delivery Trends & Technology
- Marketing & Social Media
- Beverage Trends within the Restaurant Industry
- Looking to 2021 – The Future