Chicago – The growing access to foodservice delivery has garnered lots of attention from the marketplace and media, but while delivery grabs the spotlight, digital restaurant orders overall steadily grow by double-digits, reports The NPD Group. Restaurant digital orders, which are defined by meals or snacks ordered via mobile app, internet, or text message, have grown by 23 percent over the past four years and now represent 3.1 billion visits and $26.8 billion dollars. NPD forecasts digital orders to continue to grow by double-digits through 2020 with growth across all service modes including delivery, on premises, and carryout, according to NPD’sDelivering Digital Convenience report.
Although convenience is understandably the top reason consumers choose digital ordering, other top reasons include: no waiting; the ability to order, pay, and have it ready; ordering at my “own” pace; and earning rewards/feeling valued. In addition to these reasons, since mobile apps represent 60 percent of digital orders, users of leading restaurant brand apps are also drawn to other motivations, like saving money, customizing orders, ordering on the way, and earning rewards.
Loyalty rewards in particular have been successful for restaurant brands in getting customers to keep using their apps. These type of loyalty programs offer a compelling reason for consumers to carry a larger number of restaurant apps on their phones, helping to ensure the success of newer entrants in gaining mobile phone real estate. An app on a phone helps increase usage because it’s top-of-mind when a consumer is deciding what and where to order.
“Digital ordering has raised the bar on convenience and with it the customer experience,” says David Portalatin, NPD food industry advisor and author of Eating Patterns in America. “Digital ordering overall and apps have provided a path to market to consumers on a one-to-one basis and offer them a restaurant experience customized to their needs.”
About The NPD Group
NPD offers data, industry expertise, and prescriptive analytics to help our clients grow their businesses in a changing world. Over 2000 companies worldwide rely on us to help them measure, predict, and improve performance across all channels, including brick-and-mortar and e-commerce. We have offices in 27 cities worldwide, with operations spanning the Americas, Europe, and APAC. Practice areas include apparel, appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, food consumption, foodservice, footwear, home, juvenile products, media entertainment, mobile, office supplies, retail, sports, toys, travel retail, video games, and watches / jewelry. For more information, visit npd.com. Follow us on Twitter: @npdgroup.
About NPD’s Food Sector
NPD is the only research company to continuously track and have a full view of what individuals actually eat and drink in- and away-from-home. We are the definitive source of information and insights for all aspects of food and beverage consumption and consumer use of restaurants and foodservice outlets. We can track the same foodservice consumer over time to gain actionable insights. In addition, we track actual sales information on every product shipped from leading broadline distributors to each of their foodservice operators. Follow us on Twitter: @npdfood