Customers crave the quality food typically associated with ‘dining out’ experiences, but without the time and money constraints.
Food delivery availability is skyrocketing as in-home meal kits like Blue Apron and foodservice delivery like DoorDash increase in number.
A recent report by The NPD Group, a leading global information company, found that while historically delivery options were often limited to pizza and Asian foods, today menu choices abound. What has also changed from past food delivery is that consumers are now accustomed to ordering goods online and having them delivered to their door quickly.
In terms of restaurant delivery, delivery traffic outside of pizza is growing strongly, up by 33% since 2012, while traditional quick service restaurant (QSR) pizza delivery is on the decline, according to NPD’s foodservice market research.
Foodservice delivery options outside of pizza are still relatively small, with roughly six million delivery-related visits in the past year. But there is little doubt that the growth rate for categories outside of QSR pizza will continue on a strong growth path. All types of restaurants are increasingly partnering with delivery services, such as Eat24, Grub Hub, and Seamless. As UberEATS and Amazon Prime Now restaurant delivery continues to roll out nationally, delivery will see significant growth. NPD’s forecasts that off-premise foodservice will continue to outpace overall restaurant industry traffic growth over the next decade.
“Consumers want the ‘dining out’ experience of quality food, but they’re saving money and time by having food delivered to their homes,” said Bonnie Riggs, NPD’s restaurant industry analyst. “Similar to the consumer value online direct-to-door shopping fulfills, there is the appeal of being in the comfort of their own homes, and not having to deal with the ‘hassle’ of the outside world.”
In-home meal kits, whether meals to cook from scratch or just assembly, are a more recent offering than foodservice delivery. These kits appeal to consumers wanting fresh, authentic food, and control over what they’re eating, according to NPD. Meal kit delivery services are growing in popularity, particularly in urban areas, but are not nearly as mainstreamed as foodservice meals.
“I don’t believe we’ll see mainstream adoption of home meal kits, like we’ve seen with foodservice delivery,” said Darren Seifer, NPD’s food and beverage industry analyst. “Meal kit consumers have more expendable income and primarily live in major metro areas. There is definitely a market for these services; it’s just not nearly as big as foodservice delivery.”
