
Pizza no longer dominates the delivery and takeout business. Consumers are increasingly ordering their favorite foods to be delivered or to-go, rather than dining in-store. And, in fact, restaurant delivery traffic outside of pizza has risen 33 percent since 2012. This presents a unique opportunity for foodservice and restaurant operators to shift their strategies and operating processes to take advantage of the delivery and takeout trends, rather than have their dine-in numbers and market share cannibalized by competitors who are focused on these services.
According to recent surveys, 51% of Americans use delivery services to purchase meals from casual dining restaurant and 26% order takeout or delivery at least once a week. These behaviors show little sign of slowing: digital ordering and delivery have been growing 300% faster than dine-in traffic since 2014. Third party delivery services, like DoorDash, Caviar and Grubhub are becoming major marketplace competitors, providing speed, ease of use, convenience and customized offerings based on customers’ previous orders. Furthermore, larger players such as uberEats, Amazon Prime and Google, are now entering this space and beginning to pilot their own food delivery programs.
Confidence in the future and growth trajectory of this space is strong. More than half a billion was invested in the food delivery sector in 2014 – almost 13 times the amount in 2013 – with more than a billion dollars invested in 2015. As for restaurants, partnering with third party delivery services is a seductive alternative, with research showing an increase in restaurant sales volume from 10% to 20%.
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According to Todd Carmichael, founder of coffee chain and industry leader
On Monday, Uber announced that it would be canceling Instant Delivery – the lunch-only, 10-minute curbside delivery feature in New York . The tricky logistics of the service had largely been offloaded to featured restaurants, who estimated how many of a given meal would sell each day and sent the prepackaged lunches to Uber’s midtown office to be picked up and driven or biked around the city. Even so, the delivery company admitted they may have overreached a bit, and have cancelled the service to focus on the core of the UberEats business.