Online food delivery market analysis
In case you run a restaurant business and your nice place cannot be found in the Internet, that’s a big problem. Going online gives you an unprecedented opportunity to advertise your business. Basic SEO rules guarantee that people can find what food and delivery services you offer online. Without a website, your food business’s potential will be untapped. But if you have one, you will enjoy such benefits as:
- getting into catalogues and restaurant aggregators,
- having your restaurant discussed on such resources as TripAdvisor,
- giving your guests a possibility to book a table online,
- informing about special offerings, new menu or other promos/coupons via email.
Modern buyers are accustomed to convenience when a product or service can be obtained quickly by pressing just a couple of buttons. Therefore, there are more and more food delivery services that can’t even imagine their daily work only offline.
According to Statista, in 2018 the income from online delivery was equal to $82.714 million in USA. Experts believe that this became possible due to the diversification of the delivery market with the emergence of aggregators and specialized delivery services. Besides, revenue is projected to increase to $137,596 million in 2023.
Such a rapid development of the industry obviously drew the attention of large market players. For example, UBS Bank received a huge number of questions about food and delivery business from its customers, after which it was decided to conduct food delivery market analysis. The survey includes data from more than 13,000 consumers worldwide. The study concludes that an increase in online food delivery market, now equalling to $35 billion, will have reached $365 billion by 2030. Bank representatives also noted that the majority of large restaurant chains cooperate with delivery applications and, as a result, food delivery applications are currently on average in the top 40 most downloaded applications in target markets. What is more interesting, UBS believes that with the further development of such factors as easily accessible and cheap labor pool of concerns, an increasing number of specialists and robotization, professionally prepared food can get close to homemade food in consumer value. More than 26% of households order a takeout or delivery at least once a week.
Online food ordering statistics: facts and numbers
We can also have a closer look at the similar food delivery statistics representing the expenditure on takeaways in the UK and make a conclusion that a steady increase for money spent on takeaways is expected by 2022.
Survey done by Statista
Worldwide online food ordering statistics also reflect a growing popularity of online food delivery segment. User involvement in the online food services is 22,2% at the beginning of 2019 and the total number of users get close to 1150,2 million people. The most extensive segment, Restaurant-to-Consumer delivery, is projected to increase by 72.4% from 2017 to 2023.
How does this large group of customers behave? McKinsey Insights highlighted the main points in the average food application consumer behavior:
- Delivery is more in demand by household. 82% of orders are made from home. This fact destroys the popular misconception that the proportion of orders from the workplaces is about the same as from home.
- Lost time is never found again. Delivery has the advantage of saving time and convenience so the wait time is the key option for more than 60% of customers. Surprisingly, customers demonstrate loyalty to the price , but not the delivery time increase.
- People prefer continuity. Just look at the bar graph below and you can easily understand that 77% of customers rarely switch to another aggregator platform, that’s why it’s so important to sign up the largest number of users in the shortest period of time. It makes market access barriers high for aggregator applications, but once you get your audience, you will get a steady stream of profits and high customer commitment.
New-delivery platforms have a proven track record of retaining customers, survey done by McKinsey
Not only food delivers can successfully run an online business. Nowadays it’s difficult to imagine a prestigious restaurant without its own website or an application. If someone likes the place, he/she will recommend it by name, because currently all additional information can be found on the Internet.
According to the latest surveys, most customers (80%) indicated that a restaurant coupon would encourage them to consider going to that restaurant. Around 70% of the people interviewed stated that an email from a restaurant or a marketing piece sent via email would produce the same effect.
Survey done by Rochester Institute of Technology
In other words, without a branded content website, you lose lots of advertising benefits. If you offer your guests a user-friendly website with convenient navigation, where they can easily find the restaurant menu, your contact details, location or promos, your chances to attract a customer and enjoy their credibility and trust.
One more important option for your food business your branding website can provide you with is that you are empowered with an instrument helping you to get vital statistical information for your business development and marketing:
- age and gender of your average visitor
- most popular menu orders
- most widely used products
- peak load hours in the restaurant
- user geolocation
Who’s on the market
One more important factor is that living in an urban area, many people lack time to prepare meals at home. That’s why such services as FoodPanda, UberEats, Zomato and Just Eat have become very popular. Let’s have a look at the market leaders. FoodPanda online ordering app for food operates in 43 countries. It has an impressive database of restaurants to order foods from. The number of cities where UberEats functions is around 1000. The app makes it possible for the customers from US, Japan, India, Brazil, Mexico and many other countries to choose their preferred food from local restaurants, and the UberEats delivers the orders to the clients’ place asap.
Besides ordering apps, there are also apps for searching the local restaurants with a possibility to filter them according to the cuisine. Are you a restaurant, coffee shop, trattoria, pizzeria or bar? You will be visible on the map, with all the details about you, i.e. seating areas images, dishes and chefs. The apps can also be augmented with some additional sections like hints for choosing a restaurant, news and other useful advice for choosing a place to visit. Available in 25 countries including US, Australia and India, an online restaurant search platform named Zomato offers food ordering and delivery services, as well as social network options, where users can leave reviews and read feedbacks from other customers. Code Inspiration team is proud to stand at the origins of this project with the Cibando, a restaurant aggregator, which further evolved into Zomato food ordering service.
As you can see, restaurants and food delivery services spread around the globe. One more geographical point where a successful project was implemented by Code Inspiration team is St. Petersburg. The project named YummPizza is a service operating according to the principle of on-demand delivery: order is made online using the application on iOS and Android platforms or via website, and is further proceeded offline by the pizza restaurant staff.
Code Inspiration’s secret recipe
In this way, Code Inspiration software development company also actively participates in this process to make food delivery fast, easy, convenient and well-organized for its customers. We do not just develop on demand delivery apps. We help our clients build solutions that make their customers happy and well-satisfied with the service they get via a mobile application or websites online. Basing on our rich experience, our team will consult you on your food and delivery software development project and offer the functionality you may have not even thought of. Take advantage of our software development and consulting services, contact us now!