Here are some of the highlights that we took from Propel’s recent Multi Club webinar ‘Exploring Delivery.’
Restaurant delivery has been growing for years with consumers increasingly ordering from their favourite restaurants, not just as a treat but on a more regular basis. Even before COVID, operators were jumping on this opportunity as they recognised delivery as a necessary addition to their operating model.
Delivery well and truly exploded when the UK went into lockdown on 23rd March. We saw deliveries become much more than just an additional revenue stream. For much of the hospitality industry, it was a lifeline, allowing businesses to survive these unprecedented times.
At a time when we were unable to visit our favourite bars and restaurants, many of us turned to delivery to fill the gap. This change in consumer behaviour provided new opportunities for operators in the delivery space.
According to NPD Group, deliveries post COVID were up more than 20% and delivery spend increased by over 25%. Just Eat signed up 1000s of restaurants in the UK during this time and it claims to have signed up 50,000 new restaurants globally in the last six months.
We are now seeing deliveries extend beyond the evening meal into other day parts. Breakfast and lunch are enjoying significant growth. According to NPD Group, families are particularly important to delivery as are the over 50s who are looking to delivery for a treat occasion.
So called dark kitchens are also growing at a rapid rate. Just Eat is seeing the biggest restaurant chains all the way to independents using dark kitchens to facilitate delivery. Dark kitchens allow operators to extend into new day parts, create new offerings, reach different demographics and to test areas before committing to permanent sites.
According to the NPD Group the delivery market is set to grow anywhere between 10-20%. And as the demand for delivery grows and restaurants increasingly use this channel to boost business there will inevitably be more competition.
Andrew Johnson, founder of Delivery Insider, said that it’s important for restaurants to invest time in planning from ensuring menus work in the delivery channel to updating marketing and social media. He says operators should see delivery as an opportunity to provide a better overall brand experience and to think about that customer experience at every touch point. We have already seen lots of creativity from Pizza Pilgrims’ DIY pizza kits which have proved very popular to Tortilla’s DIY burritos to bring a bit of fun to eating at home. Companies like Creams have also used delivery to launch virtual brands to target different day parts such as Bubble Tea.
It’s clear that the structural changes that we are seeing will last beyond COVID which presents operators with opportunities. The ongoing restrictions, changes in consumer behaviour and entering into the winter months will mean good news for the delivery market which will continue to offer a much-needed lifeline for the industry.
If you’d like to know more about Quorn® and how it can help you to enhance your delivery offer, please get in touch by emailing us at Foodservice@quornfoods.com.