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KMO170129 Delivery Whitepaper

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KMO170129 Delivery Whitepaper THE REVENUE ENGINE 5 Factors Fueling the Takeoff of Delivery & Takeout Fasten your menus! More and more restaurants are jumpstarting business with help from takeout and delivery services. From a trickle of dine-in foot traffic to the fast lane of to-go orders, sales are picking up speed thanks to this turbo-charged trend. 1. ACCELERATING DEMAND A decline in foot traffic for 6 quarters in a row has compelled Drawn to its easy accessibility and convenient meal solutions, restaurants to find a way to turn the corner on customer millennials in particular are driving the delivery and takeout acquisition and retention. Takeout and delivery have proven trend to new heights. On the mark for their on-the-go to be a reliable road to increased sales, exponentially lifestyles, delivery and takeout meet the millennial need for expanding the reach of restaurants and allowing them to speed, as technology streamlines the order and payment accommodate even more customers than their dining rooms process and removes the roadblock of human interaction. can accommodate. QUICK BITE: Chains like Papa John’s and Domino’s that excel at delivery are RUNNING pulling ahead in sales.1 THE NUMBERS average rate at which estimated value of $ 5X consumers surveyed 2016 global food 114 2 /mo. purchase takeout1 billion delivery market of consumers surveyed order more often % purchase takeout 10x % from fast casual 1 19 per month 49 restaurants1 order fast food of all restaurant visits % to-go more % consisted of to-go 79 often1 61 orders in 20163 DID YOU KNOW? Pizza Hut is grabbing a bigger slice of the delivery and takeout pie. 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GREAT EXPECTATIONS: WHAT CONSUMERS CRAVE FROM TAKEOUT Restaurants that want to feed the bottom line should keep To ensure takeout and delivery fare matches the standards set certain consumer expectations top-of-mind when it comes to for the dine-in experience, restaurants should re-evaluate and to-go orders, regardless of whether those orders are being adapt their to-go menus accordingly, or custom-create a picked up or delivered. Here are a few “musts” for restaurant menu designed for to-go customers. Partnering with a and foodservice operators to help ensure their delivery and reputable delivery service is also key to meeting consumer takeout programs measure up to consumer expectations: expectations. Take a 360-degree view of the service’s process, • Food must taste as good to-go as it would if customers from order placement to delivery, and make sure its staff 5 dined in members are well-trained and their payment systems secure. • All items must be prepared to travel, with packaging designed to maintain the right temperature QUICK BITE: Younger consumers • Orders must be delivered within an extra 15-minute are more likely to favor locations window compared to takeout with eco-friendly packaging.2 MIXED BAG: TAKEOUT TIDBITS1 Approximately 60% 58% 32% 2/5 of consumers wait to arrive cite the convenience use takeout surveyed expect that at their final of call-ahead packaging to the food taste as destination before ordering as serve, store and good as it would if consuming their motivation to make reheat food they were dining in takeout order to-go purchases DID YOU KNOW? Millennials spend over 44% of their food dollars on eating out.6 America’s largest demographic group has a big appetite for ease and convenience. Takeout and delivery fit the bill and can lead to a higher check average. 3. IN THE FAST LANE: TAKEOUT AND DELIVERY AT LSRs & FSRs LSRs and FSRs are also capitalizing on the to-go craze, A large, varied menu that features entrées, appetizers, making it easy to place an order online or in-restaurant and desserts and beverages, along with signature dishes not to be designating a special section of the restaurant for to-go found elsewhere, can help keep customers satisfied and orders. In many cases, consumers can place an order online, differentiate your operation from other to-go options. pay through the app/kiosk and pick up food without interacting with anyone from the restaurant. QUICK BITE: Younger consumers are more likely to order appetizers or desserts for both carryout and delivery.1 LSRs WITH TOP TO-GO USAGE1 FSRs WITH TOP TO-GO USAGE1 51 % MCDONALD’S 25% APPLEBEE’S 40% SUBWAY 19% OLIVE GARDEN 37% BURGER KING 14% BUFFALO WILD WINGS 32% TACO BELL 13% CHILI’S 28% WENDY’S 12 % DENNY’S 25% KFC 12 % IHOP 23% PIZZA HUT 10% RED LOBSTER % ARBY’S Hatching More Family Business 20 Chick-fil-A has expanded their to-go offerings with new Family Style Meals. Designed based on feedback from their dinner customers, with special % input from parents, the concepts focus on creating an enjoyable experience 19 DOMINO’S that brings families together without the stress of having to prepare a meal. DID YOU KNOW? 46% of consumers surveyed agree that the quality of to-go food is just as good as when they dine in.1 4. SETTING A NEW COURSE: MORE THAN ENTRÉES TO-GO Opportunity Knocks with Young Consumers Bottom’s Up for the Bottom Line Most to-go orders only include an entrée, but younger Many retailers are also looking for ways to offer adult consumers are more likely to order appetizers or desserts for beverages to-go without violating open container laws. both carryout and delivery.1 Since 26% of consumers aged TGI Friday’s is currently testing “Everything But the Booze” 25–34 are likely to purchase more food to-go than for mixed-drink bags which customers add alcohol to at home.1 dine-in1, there is ample opportunity to create unique takeout menus that feature desserts, appetizers and beverages that are only available for to-go purchases. QUICK BITE: With the exception of special occasions, younger consumers tend to prefer takeout over dining in.1 TOP 16 DESSERTS ORDERED FOR DELIVERY IN 20167 CHEESECAKE 1 BROWNIES 9 2 TIRAMISU 10 PIE CANNOLI 3 RICE PUDDING 11 CHOCOLATE CHOCOLATE CAKE 4 12 CHUNK COOKIE BAKLAVA 5 FLAN 13 CHOCOLATE NEW YORK 6 CHIP COOKIE 14 CHEESECAKE MOCHA CARROT CAKE 7 ICE CREAM 15 CHOCOLATE 8 ICE CREAM 16 MOUSSE CAKE DID YOU KNOW? More consumers order dinner to-go (81%) compared to lunch (76%) and breakfast (57%).1 5. MEAL KIT BOOM: THINKING INSIDE THE BOX Sometimes breakthrough foodservice innovations come from inside-the-box thinking, as the meal kit trend illustrates. Big Brands, Big Business Amazon recently entered the space by registering “We do the Consumers are looking for alternatives to dining out, and prep. You be the chef” with the U.S. trademark office. The many have turned to meal kits for at-home meals minus the e-commerce juggernaut is currently testing meal kits to order hassle of having to go to the grocery store or search the and purchase in the Seattle area. shelves for ingredients. Available via delivery subscriptions or at your grocery store, meal kits offer pre-portioned Coca-Cola partnered with Chef’d, offering customers meal ingredients and step-by-step instructions for creating a kits that include complementary branded beverages. John delicious and healthy dinner at home. Carroll, VP E-commerce, Coca-Cola North America, said: “We want to go where our consumers are going and Erik Thoresen, principal of the market research firm beverages are an integral part of the meal occasion.”10 Technomic, projects the fresh food subscription market in the U.S. alone will grow to a multi-billion dollar market over the next five years.8 Consumers are increasingly selective about what they eat and where it comes from, as demand for better-for-you fare grows. 81% of Nielsen survey participants QUICK BITE: 25% of feel that meal kits offer healthier options compared to American’s have purchased a 9 prepared food at the grocery store. meal kit in the last 12 months.9 ULTIMATE GUIDE TO THE BEST MEAL KIT DELIVERY SERVICES Hq t d g u" tested national meal kit delivery services. Here’s how they rank:11 PEACHDISH 1 6 CHEF’D HELLOFRESH 2 7 PURPLE CARROT PLATED 3 8 HOME CHEF BLUE APRON 4 9 GREEN CHEF TERRA’S KITCHEN 5 TAKEOUT KIT 10 Nothing perishable ships (very little packaging waste) DID YOU KNOW? Most meal kits offer ingredients to prepare up to 4 meals a week for anywhere from 2 to 4 people. Even though most don’t offer dessert as an option or add-on, 86% of consumers would like the ability to add dessert to their meal kit.9 A ROADMAP FOR TAKEOUT AND DELIVERY SALES Now is the time to take advantage of the to-go trend and offer consumers a more convenient way to enjoy the food they love.
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