bake - December 2016 - 11

labor front

Why Consumers Want Delivery
Most Americans who use third-party food delivery services agree

Americans who have not used a third-party restaurant delivery

that it makes their lives easier, and nearly one third (31 percent)

service say fast delivery (31 percent), restaurant selection

say they use these services at least twice a week, according

(28 percent), low order minimums (27 percent) and ﬁrst-use

to new research from Mintel. For bakers, this trend points to a

coupons (26 percent) would motivate them to try it.

growing opportunity to offer home delivery through a third-party
service like DoorDash, Grubhub, Postmates and UberEats.

However, there may be no convincing the older generations, as
more than half (53 percent) of non-users age 55+ say nothing

Mintel research reveals that "dinner and a movie" is taking

would motivate them to use these services, compared to 11

an untraditional spin as two in ﬁve (41 percent) consumers,

percent of non-users aged 18-24 and one third of non-users

including well over half (57 percent) of Millennials, say that they

overall. "Older consumers tend to dine out less frequently than

have restaurant food delivered so they can watch movies and

other age groups," Bryant says. "As such, these consumers may

TV shows at home.

view going out to eat as a more special occasion."

Despite impressive usage among third-party food delivery
consumers, the industry is still relatively new. Only 12 percent of

THIRD-PARTY PLAYERS

Americans say that they have used a third-party delivery service
in the past three months, according to the Mintel report. Among
non-users, three in 10 say that they would rather order delivery
directly from the restaurant itself, citing concerns over price, as
more than one quarter (27 percent) believe that delivery fees are
too high. What's more, some 23 percent of non-users say they
live in an area where these companies do not operate.

Grubhub is the nation's leading online and mobile
food ordering company dedicated to connecting
diners with local takeout restaurants. The company's online and mobile ordering platforms allow
diners to order directly from more than 45,000
takeout restaurants in over 1,100 US cities and
London.

Another barrier Mintel research highlights is that many Americans
crave the experience of actually going to a restaurant. Nearly 30
percent of those who haven't used a third-party delivery service
say that they prefer to eat at a restaurant. Consequently, more
than two thirds (65 percent) of restaurant delivery users agree
that it's more fun going to a restaurant than ordering in.
"Restaurant delivery is a hot market right now with many companies vying for the top spots. While usage today is low, it is important to note that the third-party delivery industry is still relatively
new and low usage is to be expected, but it presents opportunity
for growth," says Caleb Bryant, foodservice analyst at Mintel.
Those who do use these services tend to be Millennial men
living in urban areas, indicating a need for these companies to
attract a more diverse consumer base, Bryant adds. Delivery
cannot compete with the entire restaurant experience, but
third-party companies can work at increasing the incidence of
restaurant delivery by highlighting the beneﬁts of having food

DoorDash is a technology company that connects
customers with local businesses. Through the
DoorDash marketplace, people can purchase goods
from local merchants and have them delivered in
less than 45 minutes.
UberEats allows consumers to tap into the Uber
network and order almost any food from a roster
of local restaurants. The average order takes 35
minutes from start to finish, according to the
company.
Postmates is transforming the way goods move
around cities by enabling anyone to have anything
delivered on-demand. The company's Urban
Logistics platform connects customers with local
couriers who can deliver anything from any store
or restaurant in minutes.

delivered directly to the consumer.

bakemag.com | DEC 2016 > 11

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bake - December 2016

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