When famed chef David Chang began taking an interest in nonrestaurant restaurants, including Maple and Ando, the industry took notice. But are these new-wave, delivery-only restaurants just a New York City novelty, or is there enough profit and consumer interest to drive concept and prototype exploration among leading restaurant chains?
Data from Technomic’s new 2016 Takeout & Off-Premise Dining Consumer Trend Report reveals that consumer use of delivery service is growing—even at the expense of carryout service—offering promising implications to the future of storefront-less foodservice. Here are three ways consumers’ changing behaviors and preferences, especially those of younger consumers, will support the growth of delivery-only prototypes.
Delivery steals share from carryout
Despite some chains holding back from offering delivery, for such concerns as comprising food integrity or losing the dine-in experience, consumers are still demanding more and more of this convenient restaurant-to-door service. A fifth of consumers overall (19%) and a third of consumers between the ages of 18 and 34 (35%) say they are increasingly replacing carryout orders with delivery orders. Although carryout orders—including drive-thru and pick-up—outweigh delivery orders three to one, younger consumers in particular are fueling the shift away from carryout and toward delivery.
Moreover, nearly half of consumers aged 18 through 34 (46%) say they would use delivery for takeout orders at limited-service restaurants, and half of that age bracket says the same for full-service restaurants.
Cost is key
The Takeout & Off-Premise Dining Report states that carryout orders are still more common than delivery because many consumers are hesitant to pay an extra delivery fee. In fact, three-fifths of consumers who are cutting back on takeout say they are doing so due to cost reasons—the greatest of any takeout deterrent. However, if delivery-only concepts are able to reduce overhead costs with a smaller footprint and less staff compared to a traditional restaurant, they can then pass on those savings to consumers in the total price of the food, delivery and tip costs, like Maple has done.
Young consumers want tech-friendly takeout
The same younger consumers that are driving demand for delivery are also interested in the tech-based amenities often provided with these services. Three-fifths of consumers between the ages of 18 and 34 (57%) say they would be likely to use mobile ordering for LSR takeout, compared to 32% of their older counterparts. In addition, a quarter of younger consumers (26%) say they are using third-party delivery more often now than a year ago.