Growing Delivery Demand Fueling Big Changes For Food Industry

in #business7 years ago


The home food delivery business right now is booming and those venues out there today that don't pay attention and make changes to keep up with what the people want are going to be left behind.

There are now dozens of delivery services that have sprung up in recent years to meet the need in this area. You've got options like UberEATS, Deliveroo, Eat24, Seamless, Postmates, DoorDash, SkiptheDishes, Grubhub, and many others. Some restaurant businesses are opting to use third-party services to delegate the delivery responsibility, while others are building their own network to take care of that for them.

And considering the complexity and cost it requires to tackle the delivery service from start to finish, it's no wonder that so many restaurants have made the change in signing-up with third-party delivery services, seeing as they do the heavy work in taking care of the delivery responsibilities.

Millions of people are now using apps and ordering online in order to get their meals on a regular basis. For those in the food industry who want to be successful, they need to go where the customer is and that means taking it right to their doorstep. Because people more than ever nowadays are looking for convenience.

Online orders at the moment are said to account for roughly 43 percent of all delivery orders in the US.

The food delivery space is expected to continue to see massive growth in the next several years. It is expected that this market will reach somewhere around $76 billion by 2022.

Well known venues like McDonald's, Wendy's, Taco Bell, and Olive Garden have already signaled their interest to push for delivery and mobile takeout orders.

We are also seeing sit down restaurants like Outback Steakhouse open up their own much smaller to-go stands, just to try and get creative with meeting the need in the market. If this trend continues, we can expect that delivery will now play a critical role for major restaurant players if they hope to compete successfully.

To be more specific, it was the parent company of Outback, Bloomin' Brands, that sought to merge together the best of two of its brands and then release the products under an express design venue. They merged together Outback and Carrabba's Italian Grill and it's now open in Hollywood, Florida (see above). There are plans to open several others just like them in the coming months.

Social media sites have sought to make it easier for their users to get their orders in as well. And now you can order food when you are engaged in your daily social media activities online, without having to leave the site. You can order Dominos just by tweeting them the pizza emoji, or choose to order food while on Facebook from the main navigation menu.

Technology has made it increasingly convenient to order online and it's suggested that this is what's prompting more people to get their favorite food delivered and why they are choosing to eat in.

According to a recent study from a well-established investment firm Cowen, the results of their study suggest that the US home food delivery market will grow at least 79 percent or more in the next 5 years.

Now that Outback Steakhouse has unveiled their express grill that is only going to handle takeout and delivery, how long might it be until a number of others look to follow in the same steps? Might a Bonefish Grill-Fleming's Prime Steakhouse & Wine Bar express be coming next? Bloomin' representatives have said that they hope the move will boost their business by 25 percent or more.

Many restaurants have credited the online ordering boom with helping to boost their bottom lines and introduce their food to new customers who perhaps otherwise might not have taken the time to come in and try them.

Pics:
Pixabay
giphy
giphy
Oscar JB via Foursquare
via nrn.com

Sources:
https://www.cnbc.com/2017/07/12/home-food-delivery-is-surging-thanks-to-ease-of-online-ordering-new-study-shows.html
http://www.foodandwine.com/news/outback-takeout-only
https://www.bloomberg.com/gadfly/articles/2017-11-02/pizza-hut-earnings-getting-delivery-religion
https://www.cnet.com/news/deliveroo-editions-the-best-restaurants-are-going-places-with-delivery-tech/
http://www.foodandwine.com/news/wendys-delivery-expansion
https://www.theverge.com/2017/10/13/16468610/facebook-food-ordering-new-feature
http://wpri.com/2017/11/08/online-ordering-boosts-bottom-line-for-restaurants/
http://www.abc.net.au/news/2017-11-09/fears-ubereats-deliveroo-will-lead-to-delivery-food-price-rises/9125824
https://www.eater.com/2017/10/24/16453444/mcdonalds-doubles-down-on-food-delivery-with-ubereats
http://www.foodandwine.com/news/wendys-delivery-expansion

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Great post @doitvoluntarily ! We use delivery services all the time , as most of our favorite places , which are not always for pizza , don't deliver !! Like KFC , McDonald's etc LOL! Some will also bring beer with your food from the liquor store or cold beer and wine store for a price of course ! But hey if everyone chips in and your having a party , the last thing anyone wants to do is a Beer and Take Out run RIGHT !?!? Not to mention who has the time to cook these days !? Im much to busy on steemit for that nonsense ! Haha ! 😂😂😂😂

I know people will disagree with me, but I think this is another thing that is destroying the real value of life and joy. This world is too fast already, and everything is run by machines, computers, whatever you want to call it. There is no more talking to people, respecting people, going out and enjoying people and real conversations. We as humans are hiding behind these machines and now we don't even want to go out and be around people, because its easier just to sit and hide at home and have everything come to us. This is why businesses close, this is why people are unhappy, this is why we can't do anything on our own, we rely on the phones. There is no human connection, its all about us and how fast and easy we can get things into our homes. Humanity is disappearing because of all this fast and convenient technology.

its a battle between the old ideas and the new, i agree their is little human interaction and we forget the basic human need is to socialize, go out and meet people and technology has been the biggest cause. we call it progress but at the expense of been human.

Totally agree with you. It is a progress but at the expense of human being.
Very well said my friend, @joendegz

I think even more likely to see drone delivery in the next few years or earlier.

Nice post @doitvoluntarily and an interesting trend, but I can't help thinking about these two extremes:

  1. Either we're getting really lazy, or
  2. many of us are working way too many hours and, thus, don't have the time to even venture out to a restaurant, let alone cook, eat, and cleanup.

What's next, restaurants offering pre-chewed and slurried meals that we can just drink through a straw?

"May I help you?" -- "Yes, I'd like a 20-ounce puréed cup of steak medium-rare, a baked potato with sour cream, and the creamed corn". 😉

One thing I think that might help is more restaurants offering normal-sized portions for a cheaper price. IMHO, the amount of food that we often get and leave behind is obscene and a shame!!!

its a combination of both some are lazy while others have no time , we are living in a fast world that has forced us to adapt and so do businesses,

Reminds me of the mega-corporation in the movie Wall-e that serves everything in a cup! And the people are so fat and lazy they use hover-scooters all day and never stand up! Sadly, we're almost there....

I don't think those are the only options though. There are also scenarios where people get food delivered for some sort of social gathering they're having with people they choose to spend time with. Maybe people are just being more selective about where they spend their time and with whom.

Perhaps it's not about being "too busy" to do any of those things, but maybe people would rather spend their time doing something else.

I still enjoy going out to restaurants - but not always. Sometimes I just want to stay in and eat in my PJs.

I don't think one is necessarily better than the other. They are different choices and people have their reasons.

It's also kind of a chicken or egg question - are people getting more lazy/opting for convenience because technology allows it, or is it technology meeting a demand that was already there?

I really hope the food delivery industry keeps picking up. At the moment, I'm a bike courier for Postmates, but am thinking about signing up for numerous delivery services at the same time. That way, when I'm working, I have multiple hooks in the water.

As a farmer,rancher, and baker, I have dabbled in this space with pasture-raised meats, eggs, organic fruits and veggies, and baked goods. When the home delivery is good its great, but when its bad, its bad for a long stretch. It all depends on the economy in your area and the season (especially for us in Florida when our population jumps up in the winter months). Right now, im killin it with baked goods but in the spring when the grass it good again we'll deliver meats and eggs. Im seeing a scary trend in young people who DONT KNOW HOW TO COOK, as they are eating out/ordering out 2-3 times a day. Very unhealthy for the most part...

times are changing and technology seem to be the catalyst that is fueling the change and is forcing more business to adapt to new models of doing business, people are finding it easy to work from home, shop, trade so its no surprise that even the food industry is been forced into deliveries to home. its easy and save the buyer time and energy

you do a great job

Nice analysis @doitvoluntarily I think this service demand will boom more day by day.

I use Just Eat quite a bit but recently heard they take to much from the restaurants so a lot of them are opening there own websites to order from