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Who doesn’t enjoy dining out?
But after a long hard day at work, no one wants to drive to their favorite restaurant to grab a bite. Studies have shown people prefer placing an order online for takeout or to order it at the comfort of their living rooms watching the news or ‘Netflix to chill’. In short, people prefer convenience, and with this awareness more and more restaurants are opting for online order and delivery systems.
2020’s coronavirus pushed the demand in an upward trajectory, however, the online food order and delivery were trending long before the pandemic. To stay afloat and keep up with the stratospheric demand many restaurants switched to the life-saving approach that is an online order and delivery platform for their customers.
Typically, restaurant establishments opt for either of the two paths: a proprietary app through restaurant mobile app development or a third-party ordering platform. And the market is ripe for both.
Chow down on our list of 40 appetizing restaurant and food app stats and facts to get an insight into the restaurant and food delivery app market or to make informed business decisions. Bon Appétit
Restaurant and Food App Market Stats
1. A report by wealth management and equity research firm UBS reveals that by 2023 the digital food delivery market is expected to reach a whopping $365 billion. (qsrmagazine)
Although, not as many restaurants have their own apps as you might imagine. Many of them are heavily reliant on third-party apps even though those applications tend to charge a hefty fee.
2. In large suburbs, online ordering during pandemic went as high as 3,868% between February and April. (upserve)
This is not an urban trend or limited to a specific geographic location.
3. It is projected that online food ordering revenue will climb to $220 billion by 2023 – 40% of overall restaurant sales. (demetra)
And the cycle of online ordering will carry on!
4. Doordash, last year, reportedly had the highest market share in the food app delivery market at 27.6%, GrubHub and UberEats led at 26.7% and 25.2% respectively. Postmates had the least market share at 12.1%. (restaurantdive)
Although delivery services wrestle for greater market share, their biggest rivals are actually the restaurants (with their own apps) themselves.
5. The use of third-party delivery systems is shown to ramp up restaurant sales by 10 to 20 percent in certain cases. (upserve)
The aggregators empower restaurants – specifically small restaurant establishments – to access new markets and new opportunities, and that too through a fairly low-risk model for the chains themselves.
6. As many as 27 percent of restaurants were compelled to use one of the leading food delivery apps, i.e. Grubhub, Postmates, DoorDash, etc. – even more than before the epidemic. (washingtonpost)
Although food aggregators like Uber Eats, DoorDash, and Postmates are extremely helpful, these apps cost restaurants a juicy amount.
7. By 2024, the market value of the platform eats model in the United States would be at $62.3 million. (spendmenot)
Food order and online delivery apps are reshaping the restaurant industry and the industry as a whole is well poised for this dramatic change.
8. At present, there are 338 food delivery businesses with funding of $5+ million in the US alone. (crunchbase)
This reflects the growth trajectory of the food delivery business is on.
Food and Delivery App Consumer Statistics
9. According to the Technomic study, 46% of consumers expect restaurants to offer online/mobile or kiosk/tabletop ordering functionality, and 43% preferred mobile payment during the pandemic. (technomic)
Results from Technomic show that for the most part, even full-service consumers considered digital platforms facilitating delivery and pick-up.
10. 60 percent of US consumers order delivery or take-out at least once per week. (upserve)
More and more people are jumping the “Online Order Train.”
11. Millennials and Gen Z are the key consumers of the “Big 4” 3rd Party Delivery Services (DoorDash, Grubhub, Postmates, and Uber Eats). (thestreet)
In addition, surveys indicate that up to “54% of consumers aged 18-34 are active monthly users of at least one of the Big 4.” It is important to note that people aged 35 and over are much less inclined to use these delivery apps.
12. Consumers who order pizza online pay an average of 18% more on orders placed over the internet in comparison to phones. (Pizza Sales)
There are many reasons why consumers prefer to order online. Once again, convenience tops the list, as a consumer can place an order from anywhere with internet access using their mobile devices.
13. Consumers who have never used a third-party app said they would if there was faster delivery, better restaurant selection, low order minimums, and first-time-use coupons. (Mintel)
87% of Americans who use third-party food ordering services said these apps make online ordering smoother.
14. Research by Toast reported that thirty-nine percent of consumers give preference to the ‘ease of use’ factor when placing an order. (restaurantbusinessonline)
Consumer behavior is ever-changing and these transitions are especially important for those in the restaurant delivery business, where this behavior is so strongly linked to technology and convenience.
15. In a survey, consumers reported that they would place an additional order one every month at their favorite restaurants if they offered delivery, and more than 70% of QSR and fast-casual consumers said they would order from a restaurant more frequently if delivery was provided. (foodservicenews)
Restaurant businesses and delivery services businesses can use the customer data t improve the overall customer experience, which is critical for remarketing and retention.
16. Today, 55 percent of people prefer ordering food without having to interact with a person. (pymnts)
Besides, why go to food when food can come to you?
Proprietary Mobile Ordering App (Restaurant App) Stats
17. 51.5 percent of customers want their food to be delivered with the restaurant’s own app. (poppinpay)
And if your restaurant is still dependent on third-party delivery services, maybe it’s about time you mull over getting a proprietary mobile ordering app for your restaurant.
18. Restaurants with an online ordering system are able to raise their delivery profits by 30% higher than those who do not. (Business Insider)
When the brick and mortar i.e dine ins closed down, restaurants that had mobile apps or relied on third-party services, had a fighting chance. Besides, consumers are more likely to remember a restaurant with a digital presence.
19. In their Q3 2020 fiscal statement, Starbucks revealed mobile order and pay accounted for a record 22 percent of all transactions, with 16. 3 million active US rewards members, accounting for 46% of all sales. (builtin)
Based on a survey of 500 smartphone owners, Starbucks has the most frequently used promoted loyalty rewards app.
20. Starbucks rated as the No. 1 quick-service app by app Annie in the United States last year based on an average monthly active mobile usage.. (qsrmagazine)
The popularity and votes indicate the service they provide – from a great UI of the app to personalized beverage and food offers, the content is highly personalized to their customers’ needs.
21. In 2018, Dunkin’ introduced the concept of a drive-thru mobile order window – the window was exclusively for those who placed an order using their mobile app. (qsrmagazine)
Not only this promoted the use of their app but it was convenient for their regular take-out customers too – no mare waiting for in the long lanes!
22. During the 2020 coronavirus pandemic, nearly three-quarters of Domino’s sales were made digitally through its app.(prnewswire)
Most QSRs like Domino’s put up a good fight against the pandemic with their mobile apps.
23. More than 90% of Domino’s international markets feature online ordering.(domino’s)
But do you know what’s even more intriguing? Over half of its sales come from outside the US.
24. Burger King has recently unveiled a concept design showcasing a lane for mobile and delivery orders, as well as drive-in lanes for app users. (restaurantbusinessonline)
It’s brilliant. Delivery will likely become faster and more convenient with this initiative – mobile apps are transforming the very nature of what it requires to run a restaurant.
25. 52% of diners trust a restaurant’s mobile app over a third-party delivery service and 74% said they wish more restaurants would offer a delivery service of their own. (upmenu)
Consumers are most likely to opt for the same restaurant again in the future and prefer making the entire payment to the restaurant. Restaurants too can use this opportunity to woo off customers using fun features i.e loyalty programs.
26. Research by NPD Group revealed that mobile accounts for 60% of all digital restaurant orders. (restaurantdive)
Customers will willingly pay more i.e delivery charges to restaurants delivering on convenience. They’ll happily order from the restaurants that make their lives easier.
27. Taco Bell also revealed a prototype with a mobile-order drive-thru. (restaurantbusinessonline)
Much of that chain’s “Go Mobile” prototype is built around digital users—it will feature kitchen technology connected directly into the mobile app that will detect when customers arrive at the restaurant.
28. Domino’s sales ‘accelerated materially’ during the lockdown with its stock going up by 26% in 2020.
Domino’s requires no rebounds in the fashion it was engineered for a crisis like the present one and its technology investments to make online ordering a cinch and enable versatile online delivery options have built a long-lasting growth tale.
29. Edison Trends reported that during the week of February 9, Dominoe’s had a 50% of direct orders while Pizza Hut landed at 29% and 20% went to Papa John’s. (medium)
People are eating more pizza during the pandemic and Domino’s continues to dominate the pizza market.
Food Aggregators or Third-Party Delivery App Stats
30. The platform-to-consumer delivery app segment accounted for $6 billion and the restaurant-to-consumer delivery segment accounts for $13.472 billion. (statista)
The renewed emphasis on convenience has generated escalating demand for web and mobile-based food delivery services.
31. During the 2020 coronavirus pandemic lockdown, Uber Eats, Deliveroo, and DoorDash all reported a huge surge in orders between February and March. (statista)
While these services don’t prepare your food, these middlemen provide convenience in form of speed, ease of use, and customized offerings based on your previous orders.
32. In 2020, DoorDash accounted for 45 percent of all food delivery orders, with a double-digit edge over everyone else. (businessofapps)
While it may not be cherished, the criticisms do not appear to upset DoorDash’s progress or funding.
33. In 2021, the total online food delivery market in the United States is expected to reach $22.332 billion with over 116.1 million users. (statista)
More and more consumers are moving from conventional phone ordering to digital platforms that allow them to order a wide variety of cuisines from several restaurants within a single site or app.
34. Notable players in the global food delivery market for mobile applications comprise IBM Corporation, Cognizant, Google Inc., Zoho Corporation Pvt. SAP SE, Apple Inc., Mendix CA Inc., Red Hat Inc., and Microsoft Corporation.(transparencymarketresearch)
Implementation of technology in the food industry is gaining momentum as both businesses and consumers reap the rewards.
35. Platform-to-Consumer Delivery services, such as Uber Eats, have the highest market share with $62,798 million in 2020. (statista)
Platforms such as Uber Eats make it incredibly simple for customers. It makes sense for the biggest fast-food restaurants to affiliate with Uber if they do not deliver the food themselves.
36. A food delivery market research by Allied Market Research revealed that the market for mobile delivery apps is projected to hit $16.6B in 2023. (restaurantdive)
The key factors of this acceleration include greater internet access, higher living standards in developing countries, and an uptick in mobile use.
37. Apart from the Mighty 4s, the top 10 Food & Delivery apps are Amazon, Swiggy, Food Panda, Zomato, Deliveroo, Domino’s Pizza, Just Eat, Caviar, and Eat24. (appsamurai)
According to USB, the radical shift from the kitchen to online food ordering is on the uptick thanks to time-hungry customers who need a fast fix for everything.
38. Doordash, which secured 12th position on the 2020 CNBC Disruptor 50 list, bagged 45 percent of third-party delivery orders, led by rivals UberEats at 28 percent, Grubhub at 17 percent, and Postmates at 7 percent. (cnbc)
Again, this reflects the changing and diverse customer needs.
39. In one survey of consumers, 31.2% stated they opt for on-site food pickup through a third-party app. (emarketer)
A lot of first-time customers are rather skeptical when planning to visit a new restaurant in their locality, as there would be very less information about quality, taste, price, and service. However, this is not the case when you order food online from a new restaurant. The food apps help them decide with crucial details like star ratings and reviews about the eatery they want to order from.
40. There was a 169% in the number of restaurants using online ordering for takeout and delivery from February to April paired with an 840% surge in the weekly sales via online ordering. (upserve)
Millennials just want the convenience of order and if your restaurant doesn’t offer that, they will order elsewhere.
These stats are just the appetizers. Scour through our menu for the main course and dessert.
Menu for the Main Course & Dessert
Do you notice the changing dynamics within the food industry? The last few years have seen an absolute explosion of diversity with a variety of food aggregators and restaurants opting for their own apps. The market is ripe. Now is your time. If you’re a restauranteur looking to build an app or updating your existing restaurant mobile app you can reach out to us for a free consultation.
If you need a game-plan to build your restaurant and food app. CitrusBits will help outline the entire recipe of your food app, specifying each ingredient, as well as walk you through the launch. If you’re interested in having a food delivery app built we have something fresh in store for you. Nothing frozen or stale. We promise!
CitrusBits is an award-winning mobile app development agency with deep expertise in the restaurant industry. Having previously built mobile apps for Burger King, Zen Classics, and FullyRaw, CitrusBits is also building a mobile ordering app for a respected national QSR with dozens of locations across the US. CitrusBits is well-versed in the end-to-end process of creating a mobile ordering app, including the following aspects: menu systems, location-based services, mobile ordering, POS integration/creation, delivery/logistics integration, and loyalty/rewards. If you represent a QSR or restaurant chain and are interested in learning more, please get in touch for a free consultation.
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