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­­­­Delivery Continues To Lead The Growth Charge

Bonji Foods Aficionado Smart Brief: Volume 52

­Hi all, welcome back to the Bonji Food Aficionado Smart Brief! Happy Tuesday and we hope you had an amazing weekend! With the average American spending around $37 a week on food delivery, the sector only continues to grow. This may seem like a pretty steep price to pay for food, and it is, especially in addition to the many other costs that come with weekly spending habits. Taking this a step further, around 50% of that price isn't even spent on the food itself! The delivery fees and surcharges have been steadily increasing over the years, and that also appears to not be heading anywhere. Nonetheless, what does this mean for restaurants moving forward?

US Food Delivery

­­­­­­­Looking into The Future Of Food Delivery As we've mentioned, food delivery is only growing, along with the prices. But why are consumers so willing to pay extra fees for delivery? It all comes down to two things: convenience and restaurant quality.

“Consumers clearly seem to have placed a value on delivery,” said David Portalatin, foodservice industry advisor at The NPD Group.

Customers are looking for variety and quality, as they look to “treat” themselves to weekly food delivery. What do restaurants specialize in besides offering great service and quality? Focusing on your delivery quality is essential to securing more business these days. Specifically, the Gen Z and Millennial age groups are flocking to delivery options. More than 27% of Gen Z say their preferred method of eating from restaurants is delivery. Even with soaring inflation and prices, delivery spending hasn't been cut. With work-from-home options, lasting post-pandemic, off-premise dining has proven to have a major impact on restaurants as a whole. In fact, 41% of restaurant meals are now consumed at home! Additionally, ticket size hasn't gone down, if anything it's continued growth as well. Thus, restaurants have a unique opportunity to directly target delivery services. I couldn't tell you how many times I have looked through a delivery app and gone on a deep dive to try and find a) a quality meal and b) a good deal. Therefore, we believe that offering online delivery deals is an ideal way to increase sales. Try your best to make your business stand out, but nothing will catch the consumers' eyes more than a solid price with amazing pictures. Of course, hosting an online delivery service is your best bet as it can avoid some of the fees from third-party sites, however, those same third-party services can help gain a ton of exposure!

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