In the endless blur of restaurant concepts vying for market share among millennial dining enthusiasts, bringing meaty differentiating factors to the table is a must.
The delivery boom is driving business at a rapid pace, piling plates high with profits for restaurant operations across the country. According to the market research firm NPD Group, deliveries turbocharged a 20% increase in revenue over the last five years, and the overall number of deliveries grew by 10%.1
Foodservice is nourished by innovation and investment, so it’s no surprise that technology has whetted the appetite of investors to finance the industry’s digital revolution. Weaned on the speed and convenience of digital technology, young consumers have an insistent yearning for the instant gratification of foodservice at their fingertips—and savvy investors are taking note.
Nothing feeds the foodservice bottom line like loyal customers. As the National Restaurant Association reported, repeat customers account for as much as 70% of a restaurant’s revenue.1 These patrons are also more likely to have a higher check average, given survey data that shows a 60-70% probability of upselling to an existing customer, compared to 5-20% for new ones.2
Delivery is often seen as a bright spot during dark times for the restaurant industry. But while it may be responsible for jumpstarting stalled sales, historically the industry has shown strong growth, as the research firm CBInsights reports.1
Consumers who hunger for the speed and convenience of restaurant apps are occupying an increasingly prominent place at the foodservice table. The market research and analytics firm DMI dubs them “mobile reliants”—millennials who have come of age during the rise of digital connectivity and who eat up the at-your-fingertips features (like mobile ordering and payments) of quick service apps.1
In today’s crowded restaurant market, it’s no wonder there seems to be an insatiable hunger for capital investment. A lean operation may be desirable, but attracting ample funding is just as critical.
The foodservice delivery phenomenon continues at a frenzied pace, and restaurant operators, retailers and third-party platforms are stepping up to the plate to capitalize on the trend and feed growing consumer demand.
As digital technology evolves and consumers eat up the ease and convenience of the latest innovations, foodservice operations increasingly lean on virtual reality to lift sales.