Who's Behind the App for Restaurants?
Everyone knows delivery is booming as the millennial segment strives for convenience, ordering dinner through smart phones from the comfort of their own couches with Netflix streaming. For big chains like Dine Brands, Bloomin' Brands, Darden, and Buffalo Wild Wings, delivery is driving strategy and sales.
Globally, digital delivery has grown in every country steadily for the past couple of years, according to the NPD Group. In Brazil, for example, digital delivery orders grew 65 percent—the highest growth. Digital orders grew 27 percent last year in the U.S. alone. In nearly every country where data was gathered, NPD found that delivery beats pickup for digital orders. And worldwide, nearly everyone’s favorite order is the same: pizza.
Looking ahead, online delivery accounts for 30 percent of total restaurant growth through 2022, according to research from Morgan Stanley. At present, that demand is met in part—nearly 20 percent—by third-party vendors such as Grubhub, Uber Eats, and Seamless. While these apps are said to be restaurant industry disruptors, the industry can still make the most of the business these platforms bring.
New data from Coca-Cola suggests the secret is to hone delivery offerings to meet the needs of the consumer behind the app.
So, who are they? According to Coca-Cola’s DINE360 data, app orderers tend to be millennials and Gen Z. More than half of these orders come from multicultural households in urban areas. More than 44 percent of customers are affluent, and most of them are not parents—80 percent.
With no kids, these customers tend to be either in couples or dining alone. Nearly half of the orders are made spur-of-the-moment, but they are also well researched—59 percent of diners consider multiple locations before placing an order. The unspoken rule seems to be that these decisions are based on a restaurant’s social media platform, but Coca-Cola’s data says only 25 percent of orders are influenced by social media. And only 20 percent made decisions purely based on a craving.
The average app delivery customer is
- Age 19-34
- Single or coupled, but no kids