In recent years, the convenience of restaurant delivery services has transformed the way we enjoy our favorite meals, but the delivery demand for restaurants is softening. With just a few taps on our smartphones, we can indulge in culinary delights without leaving our homes. Today, we delve into a pressing topic: softening demand for restaurant delivery.
While once on a meteoric rise, the demand for restaurant delivery has experienced a noticeable shift. This change is not necessarily a cause for alarm but rather a sign of a market adapting to evolving customer preferences. This blog post will explore the reasons behind this softening demand, its implications for consumers and restaurant owners, and how these changes may shape the industry’s future.
What Factors Are Causing a Decline in Delivery Demand for Restaurants?
18% of people who have used delivery services in the past month say they don’t think it’s worth it anymore. It’s strange that we worry about bad experiences at restaurants but don’t care as much about bad delivery experiences. The delivery problems we’re facing now are quite predictable.
As restaurant delivery keeps changing and getting more popular, there needs to be more clarity out there. Everyone has an opinion, and it’s hard to know what’s true and what’s not. That’s why we looked at our customer data to clear up some misconceptions about delivery. Here’s what we found out.
First, let’s talk about how people decide what and where to order from.
Myth 1: Customers browse through delivery apps to determine what they want.
Fact: 9 out of 10 times, people already have a specific restaurant in mind when deciding to order delivery. Remember your conversations with coworkers, friends, or family about what to eat? They often know whether they want to dine in, get takeout, or order delivery.
So, don’t be fooled into thinking that customers spend a long time scrolling through endless options on delivery apps. Most of the time, they already have a restaurant in mind before they go online or use an app to place the order. Younger generations like Gen Z and Millennials are indeed more likely to browse through options, but it’s only about 3 out of 10 times. The other 7 out of 10 occasions, they already know which restaurant they want to order from. Ready for more delivery secrets?
Myth 2: People are patient and forgiving regarding delivery because it’s convenient.
Fact: People are getting frustrated and impatient. 50% of people who ordered quick-service delivery in the past 30 days say the prices have increased too much. 47% say they have grown too much). When they reach the checkout, they are often surprised by the total cost but still place the order.
With rising prices and fees, people’s expectations and frustrations also increase. Lately, the overall delivery experience could have been better. Slower delivery times than usual (30%, up by 5 points) and wrong orders (23%, up by 4 points) are common problems that frustrate delivery customers. These issues are leading some customers to give up on using delivery altogether. Our recent data shows that 18% of people who have used delivery in the past month say, “It’s not worth it anymore.” That’s a significant number.
Myth 3: Consumers Only Care About Receiving Their Food, Not Who Delivers It
Fact: People trust restaurants three times more than third-party platforms to deliver their food accurately and on time. When it comes to trust, people prefer to order directly from restaurants. 52% of consumers (up by 3 points since December 2022) prefer delivery from the restaurant, while only 16% prefer third-party platforms (down by 5 points since December 2022).
As you might expect, this preference varies among different age groups. Younger generations like Gen Z and Millennials are more likely to trust third-party platforms like DoorDash, GrubHub, and Uber Eats than older generations. However, even for Millennials, the trust lies with first-party delivery, even if the drivers are outsourced.
Which Delivery Service Option do you Trust the Most to Get Your Food Delivered Accurately and on Time?
Total U.S.
- 52% prefer restaurants, 16% prefer third-party, 32% have no preference
Millennials
- 45% prefer restaurants, 35% prefer third-party, 25% have no preference
Gen Z
- 36% prefer restaurants, 46% prefer third-party, 18% have no preference
Why does it matter? What’s the significance?
In the realm of ordering delivery, brands hold a key position in the minds of consumers, transcending the mere convenience factor. However, an interesting paradox emerges: should we enhance the delivery experience to extraordinary levels, it may inadvertently lead to a dilution of your brand’s esteemed reputation.
We are well aware that forging unwavering customer loyalty entails far more than providing a delightful user experience on your website or app. It necessitates the establishment of reliability, the acquisition of trust, and the unwavering commitment to surpassing expectations, ensuring that each and every delivery encounter becomes a truly extraordinary affair.
But are we focusing more on the technical side and neglecting the delivery experience?
If the dine-in experience had such poor data, we would take immediate action to improve it. So why is it taking so long to make delivery better? I know what you’re thinking – labor shortages, rising food, and packaging costs, and of course, taking care of the dine-in and drive-thru customers.
Secure Your Quality Packaging and Disposables With SupplyCaddy!
In light of the delivery demand for restaurants softening, it’s crucial to pay attention to the importance of high-quality and affordable packaging and disposables.
We are introducing SupplyCaddy, the leading global manufacturer and supplier of top-notch packaging and disposables for the food service industry. With our headquarters in Miami, Florida, and state-of-the-art manufacturing facilities in North America and Europe, we are dedicated to meeting your needs. We understand that your success hinges on delivering exceptional service and memorable experiences. That’s why we provide affordable options without compromising quality.
Take advantage of this opportunity to partner with the industry leader in packaging and disposables. Contact SupplyCaddy now at [email protected], and our dedicated team will guide you in choosing the perfect products for your unique requirements.
