Takeout & Catering is the New Dining Out
Takeout & Catering is the New Dining Out
- As Consumers increasingly look for more convenient options from restaurants, their interest in takeout and catering for pickup and delivery continues to increase
- Off-premise sales are estimated to account for 37 percent of total restaurant sales, or $209 billion, in 2018
For restaurant operators, providing a great guest experience is no longer just about what happens inside the four walls of their locations. The new paradigm is about having a robust off-premise program for consumers to enjoy their food where they live, work and play. Off premise dining is becoming the “new” dining out, as off-premise sales are estimated to make up almost half of total restaurant sales by 2023.
These are a few of the findings from the 2018 Takeout, Delivery and Catering Study, commissioned by Off Premise Insights, a division of Monkey Group, and conducted by CHD Expert. The study examines the off-premise landscape, including a five-year market outlook, provides consumer insights on usage, decision drivers, and order placement dynamics and expectations. Over 3,000 consumers who ordered takeout, delivery or catering within the past month were surveyed and interviewed for this study.
The study is organized into four distinct service channels that comprise off-premise restaurant sales:
- Takeout for pick-up: $124 billion projected sales in 2018
- Takeout with direct delivery from a restaurant: $32 billion
- Takeout with delivery from a third-party marketplace (e.g. GrubHub, Uber Eats): $13 billion
- Catering for pick-up or delivery: $40 billion
“The unprecedented growth in takeout, delivery and catering is being driven by increasing consumer demand for convenience and a rapid advancement in the development of cloud-based ordering technologies and marketplaces,” said Erle Dardick, founder of Off-Premise Insights and CEO of Monkey Group.
According to Google Trends, consumers are increasingly looking for more convenient options from restaurants, with searches for “delivery” growing over the past five years from about 40 percent to over 75 percent. Consumer interest in catering has seen a similar increase over the same period, with searches for “catering” growing from about 50 percent to over 85 percent.
Awareness & Usage
The study found that within the past 30 days 60 percent of respondents ordered takeout for pickup in a restaurant, 44 percent ordered delivery from a restaurant and nearly 20 percent from a third-party marketplace. Limited service and casual dining restaurants are most salient for traditional takeout and catering occasions, while traditional pizza players continue to dominate the direct delivery space.
Consumers are turning to national chains most often for their off-premise meal ordering, followed by local/regional and independent chains. Over six of every ten takeout/delivery orders are made on impulse versus planned, and almost 50 percent of catering orders are also impulse decisions.
Decision Drivers & Influencers
When choosing where to order from, consumers stated that food quality, price and order accuracy are considered the most important elements, with speed of delivery and on-time accuracy increasing in importance. Nearly two-thirds of respondents indicated they have a “go-to” place for ordering delivery, while 77 percent stated that like being able to place repeat orders from restaurants they like because it makes their ordering process easy and conveniente.
Survey respondents expect their food to be delivered within 30 minutes of placing their takeout order, with women and consumers over 45 being a bit more patient when it comes to delivery time. The ideal cost of a takeout delivery order is about $17, with males, millennials and boomers willing to spend a little more.
Consumers also reported that the use of high quality packaging that keeps the food at the correct temperature and the appearance and professionalism of the delivery person helps to ensure the integrity of their food delivery. But if something is not right with their order, over 80 percent of consumers stated they would blame the restaurant, and not the third-party delivery company.
Third Party Delivery Providers
GrubHub and Uber Eats are top of mind among consumers for third party delivery occasions. The study suggests there is a significant opportunity for new customer acquisition by these companies, as 40 percent of respondents said they have yet to use any third-party delivery service.
“The expected growth in the off-premise business will trigger a number of changes in the restaurant industry, from changing store layouts to embracing new technologies in ordering platforms and process management,” said Darren Tristano, CEO of CHD North America. “From a consumer standpoint, I expect we may see an openness to new pricing models for takeout and delivery orders, such as surge pricing, and opportunities for new promotional methods such as ‘exclusive delivery only limited time offers’.”
Catering is estimated to be a $40 billion business for restaurants in 2018. 16 percent of all off-premise orders are for catering, with12% of those orders coming from businesses.
Panera, Subway, Chick-fil-A and Pizza Hut are the most top of mind brands for catering pick up orders, while Panera, Olive Garden, Chick-fil-A and Subway are the most salient brands for catering delivery orders.
For more information on the 2018 Takeout, Delivery and Catering study please visit www.offpremiseinsights.com.
About Off-Premise Insights
Off-Premise Insights provides stories, best practices and data about takeout, delivery and catering. It recently produced the 2018 Restaurant Takeout, Delivery and Catering Symposium and is a division of Monkey Group, which includes The Catering Institute and Monkey Media Software, producers of MONKEY, the #1 cloud-based platform for takeout, delivery and catering.
About CHD Expert
For over 20 years, CHD Expert has collected, analyzed, and managed foodservice and hospitality data to help businesses win in this fragmented and fast-moving industry. CHD Expert is second to none in understanding where you can eat, drink, or sleep, away from home. Our comprehensive and segmented data allows us to adapt our local and global insights to our clients’ objectives. From ideas to execution, we deliver actionable solutions that drive business growth in the food and hospitality industries.
Media Contact: Ira Gleser, Monkey Group, 678-646-9116, firstname.lastname@example.org