News Source: www.restaurantdive.com
Report: 25% of online restaurant orders in 2020 were for delivery
News Source/Courtesy: www.restaurantdive.com

Dive Brief:

About 25% of online orders placed in 2020 were for delivery, according to Paytronix's Order and Delivery Report 2021. Restaurants that used their own couriers reported about 44% of orders were for delivery, while operators that exclusively use third-party delivery platforms only had about 12% of orders placed for delivery.

Delivery customers spent 21% more at restaurants with self-delivery than takeout customers on average except for spring 2020, when takeout orders surged due to the onset of the pandemic. When ordering for delivery through third parties, delivery guests spent about 32% more than takeout patrons before the pandemic. After the start of the COVID-19 crisis, third-party delivery customers only spent 10% more than takeout customers.  

More people were willing to try online ordering in 2020, and 65% of digital restaurant orders came from first-time guests during the pandemic. Digital orders represent nearly one-third of all restaurant orders compared to 10% of all restaurant orders pre-pandemic, according to data from Boston Consulting Group cited in Paytronix's report. 

Dive Insight:

Diners saw a lot of off-premise innovation, from contactless delivery to curbside pickup, that may have made them more comfortable ordering away from a restaurant. While delivery became a go-to channel, curbside pickup also grew in prominence, possibly because it gave people a reason to leave their homes during lockdown as well as access to restaurant cuisine without paying delivery fees. Operators also added the touchpoint in droves. Sixty-seven percent of restaurants said they added curbside delivery after March 2020, according to the National Restaurant Association cited in Paytronix's report. Customers are also expecting curbside pickup and in-store pickup to become standard offerings this year, according to a Constant Contact survey

Delivery, however, has more loyal customers, according to Paytronix. The average delivery customer orders 2.5 times per month compared to the average takeout guest, who orders 2 times per month. Curbside accounts for 1.6 takeout orders per month on average. Guests who are willing to pick up their orders tend to have more options as they aren't limited to restaurants that only offer delivery, Paytronix posited. Delivery guests tend to desire more convenience and prefer to have their orders brought to them, according to the firm. 

These delivery customers are paying more for the convenience. Guests are spending more to make the cost for delivery worthwhile, Paytronix found. Many brands, including Chipotle, have also started increasing delivery menu prices to drive profitability. Restaurant brands also offered family or bundled meals during the pandemic to help boost average checks.

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News Source: www.restaurantdive.com

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