As the food industry is constantly evolving, home cooking could soon be a thing of the past. Platforms such as Uber Eats and Postmates have made it possible for consumers to have their food delivered from their choice of restaurant that may otherwise not offer delivery. Now, this food delivery industry is expected to grow into a $265 billion market by 2030!
As we know, millennials have a stronger preference for convenience, and eat at restaurants more than any other generation, according to Bernstein analysts. And technologies like mobile ordering and delivery apps are playing a key role in making eating more convenient for millennials. In 2016, the revenue of the restaurant industry in the United States reached $782.67 billion and in 2015, consumer spending on food delivery was worth around $30 billion with $4 billion accounting for online delivery sales. Millennials have been accounted to order three times more than their parents and the reason behind this is due to the convenience that these food delivery services have to offer.
Food delivery services like Uber Eats and Postmates have made it possible for consumers to have food delivered directly from restaurants that wouldn’t otherwise offer delivery. In May, Chipotle reported a 667% increase in delivery sales after it partnered with DoorDash in late April. With this partnership, DoorDash was working alongside 2,400 Chipotle restaurants in the United States. Also, GrubHub has been working on adding more restaurants under their options of food delivery, like their recent announcement of partnering with Jack in the Box which helps increase the traffic towards that particular delivery company.
As millennials are changing the food industry to adapt towards convenience, other well-known restaurants like McDonald’s, Panera, and Taco Bell are making a major push towards delivery. The total cost of ordering food could diminish in a way that it can be more affordable than preparing your own food at home. By 2030, the demand for online food delivery services is expected to quantify 10% of the total food services market. This is equivalent to $365 billion in market share, which is a total of $35 billion today.