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.
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.
Quick service restaurants continue their shift into high gear, turbocharging sales and outpacing the competition.
According to the financial services company FirstData, QSRs surged high atop the dining segment in 2017 through 1Q18.1 The quick service category posted year-over-year growth of 6.6% in consumer spending—an especially impressive figure when compared with upscale dining, which declined 1.7%.1
Ups and downs may be par for the course for independent restaurants, but now they seem to be happening simultaneously.
According to the NPD Group, a leading provider of industry analysis and advisory services, independent restaurants are expected to spend about $39 billion with foodservice manufacturers and broadline distributors this year—even though unit count dropped 3% in fall 2017 versus a year earlier.1
Small world, big sales seems to be the rule of thumb for foodservice operators these days. According to the global information and measurement company Nielsen, consumer appetite for snacking is surging worldwide.1 Last year the snack business hit a sweet spot, serving up $3.4 billion in global growth.1
In fact, while America may be the land of the free and the home of the snack-happy, other regions of the world have pulled ahead in value growth. In 2017, Europe led the pack, with $905.93 million, followed by Asia Pacific at $895.65 million.1 The U.S., where snacking has become so popular 94% of consumers surveyed partake at least once a day,2 landed third in snack sales, racking up $750.56 million.1
Millennials are serving foodservice operators a feast of opportunities. In tune with technology, with a hunger for eating out and takeout, they’re at the forefront of the food revolution, driving such foodservice trends as farm-to-table and fast casual, according to Forbes.1
The millennial feeding frenzy has reached fever pitch, helping to drive a generational shift that has sent the percentage of consumers who dine out soaring from 25.9% in 1970 to a 43.5% in 2017.1 The trend took hold as more women entered the workforce and busy lifestyles made eating out a convenient option, with a cost differential often perceived to be negligible compared to cooking at home.1