Capitalizing On Food Delivery Trends

Toast recently published a blind survey on adults who had recently ordered takeout/delivery. With it, they delivered a list of insights that explore customer spending habits, what customers prioritize, and the effect of delivery fees on conversion. 

Implementing this data into your processes is the best way to optimize your food delivery performance— a big step towards improving customer satisfaction and driving long-term success.  

Understanding Consumer Frequency of Use

Insight: 

40% of respondents use food delivery apps or order takeout 3-5 times a month, and 37% claim that their delivery order frequency has remained unchanged over the last year.

What This Means: 

The frequency consumers use food delivery services reflects a stable demand for these services. While some consumers may have settled into ordering 3-5 times a month, it’s essential to recognize that a significant portion of the market may still be untapped. Furthermore, the fact that 37% of respondents have not increased their delivery frequency suggests that they clearly see the value and don't mind ordering food, but something is limiting them from doing it more often.

Implementation Strategy:

• Loyalty Programs: Implement a loyalty program that rewards frequent customers. For instance, offer discounts or free items after a certain number of orders. This can encourage customers to increase their ordering frequency.
• Personalized Promotions: Use data analytics to identify customers who order less frequently and target them with customized promotions. Offering a special discount or exclusive menu item could entice them to order more often.
• Convenience Features: Streamline the ordering process through your app or website to make it as easy and quick as possible. Features like saved payment methods, one-click reordering, and real-time order tracking can enhance the customer experience and encourage repeat orders.

The Dominance of DoorDash 

Insight: 

48% of respondents use DoorDash the most frequently compared to other delivery options.

What This Means: 

DoorDash’s popularity indicates that many customers prefer this platform for its convenience, user experience, or delivery network. Restaurants not partnered with DoorDash could miss out on a substantial portion of potential orders.

Implementation Strategy:

• Partnership with DoorDash: Consider joining DoorDash to reach a broader audience. Ensure that your restaurant is prominently featured, and optimize your menu for delivery by offering items that travel well and maintain quality during transit.
• Data Integration: If you are already partnered with DoorDash, integrate their data with your CRM system to gain insights into customer behavior and preferences. This can help you tailor your marketing strategies and improve customer retention.

Balancing Dine-In and Delivery Experiences

Insight: 

30% of respondents claim that the frequency with which they use delivery apps is about the same as the frequency with which they dine out.

What This Means: 

Consumers are increasingly treating food delivery as a viable alternative to dining out. This parity suggests that restaurants must provide a consistent and high-quality experience, whether customers dine in or order delivery.

Implementation Strategy:

• Consistent Quality: Ensure that the quality of your food is consistent across both dine-in and delivery experiences. This may involve refining your packaging to keep food at the right temperature, preventing sogginess, and maintaining presentation.
• Branded Experience: Create a branded delivery experience that mirrors the atmosphere of your physical location. This could include custom packaging, personalized notes, or small extras that surprise and delight customers, making their delivery experience feel special.
• Cross-Promotions: Encourage delivery customers to visit your restaurant by offering discounts or special deals for dine-in visits. Conversely, provide dine-in customers promotions for ordering delivery, creating a seamless loop that drives revenue from both channels.

Work as a Key Motivator for Ordering

Insight: 

38% of respondents say that work plays a major factor in ordering takeout or delivery.

What This Means: 

Many consumers rely on food delivery during busy workdays because they are too occupied to cook or prefer the convenience of having meals delivered to their workspace. This insight is particularly relevant for restaurants located near business districts or with a strong lunchtime trade.

Implementation Strategy:

• Corporate Partnerships: Develop partnerships with local businesses to offer special lunch deals or corporate accounts. This can encourage bulk orders for team lunches or regular individual orders from employees.
• Lunch Specials: Create a specific lunch menu with items that are quick to prepare and easy to eat at a desk. Offering combo deals or boxed meals can make it more convenient for working customers to order from you.
• Timing Optimization: Analyze order data to identify peak ordering times during the workday, and adjust your kitchen operations to handle these periods more efficiently. Consider offering pre-order options for busy professionals who want their food ready at a specific time.

Navigating Delivery Fees

Insight: 

47% of respondents are willing to pay $3-$6 in delivery fees, and 35% say low delivery fees are the feature that matters the most to them.

What This Means: 

While many customers are willing to pay a moderate delivery fee, a significant portion of the market is highly price-sensitive. High delivery fees could deter these customers from ordering, especially if they can find cheaper alternatives elsewhere.

Implementation Strategy:

• Flexible Pricing: Offer dynamic delivery fees based on order size or distance. For example, offer free delivery for orders over a certain amount, or charge lower fees for customers within a certain radius.
• Promotions and Discounts: Periodically offer promotions that reduce or eliminate delivery fees. These offers could be tied to certain times of the day, specific menu items, or customer loyalty tiers.
• In-House Delivery: If possible, consider setting up an in-house delivery system. Possibly a restaurant app? Which leads us too....

The Importance of Restaurant Apps

Insight: 

33% of respondents prefer to place an order through a restaurant’s app.

What This Means: 

A significant number of customers prefer the convenience and familiarity of ordering directly through a restaurant’s app rather than using third-party platforms. This preference indicates an opportunity for restaurants to build stronger relationships with their customers by offering a seamless, branded ordering experience.

On app or first-party ordering is especially good for restaurants who want to avoid paying extra commission fees. Incentivio allows you to access DoorDash Drive and Uber at flat rates where you choose how the cost is covered. Managing online orders this way means that the data is yours, the customers are yours and you avoid paying extra commission.

Implementation Strategy:

• App Development: If you don’t already have a mobile app, investing in one could pay off. Your app should be user-friendly, fast, and feature-rich, offering everything from easy ordering and payment options to loyalty programs and push notifications for promotions.
• Incentivize App Use: Encourage customers to download and use your app by offering exclusive deals or discounts for orders placed through the app. For most restaurants, apps serve as a central hub for their loyalty programs, making it easy to communicate with customers through push notifications and sending offers directly to their phone.
• Integrate Feedback: Use your app to gather customer feedback directly after a delivery. Gathering this feedback gives you real-time data that you can use to adjust your course and enhance the customer experience.

Keeping Costs Low

Insight: 

35% of respondents say low delivery fees are the feature that matters the most to them.

What This Means: 

Price sensitivity is a critical factor in the food delivery decision-making. Restaurants that can offer lower delivery fees without sacrificing quality or service stand to attract more customers and increase order frequency.

Implementation Strategy:

• Cost Management: Evaluate your current delivery operations to identify areas where you can reduce costs, such as optimizing delivery routes, negotiating better rates with delivery partners, or using technology to streamline operations.
• Promote Low-Cost Options: Highlight menu items that have lower delivery costs, and consider creating special value bundles that are both appealing to customers and profitable for your business.

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Turning Insights into Action

Understanding customer patterns and psychology, particularly when it comes to food delivery, can be a complex topic. For restaurants, the key to success lies in building on the business on good data that provides clear answers for such a multi-faceted subject.

By offering a consistent and high-quality experience across both delivery and dine-in channels, optimizing your partnership with platforms like DoorDash, and focusing on what matters most to your customers—whether that’s low delivery fees or the convenience of a dedicated app—you can position your restaurant to thrive in this competitive market.

Loyalty programs, personalized promotions, and strategic partnerships can increase order frequency, attract new customers, and build long-term loyalty. The future of food delivery is here, and you want to position your restaurant to capture it.