Why is Delivery Demand for Restaurants Softening?

June 15, 2023

Why is it that we angst over poor in-restaurant experiences, yet we continue to allow our customers to have unacceptable delivery experiences? The current delivery dilemma is perfectly predictable.

Let’s face it. As restaurant delivery evolves and matures, there’s a lot of noise and confusion out there. Everyone seems to have an opinion, and it’s hard to separate fact from fiction. That’s why we delved deep into our consumer data to demystify and debunk some delivery myths.

Hold on tight. Here goes.

Let’s start with where, and how the delivery path to purchase really works.

Myth No. 1: Customers browse third-party apps to decide what they want to order.

Fact: Brace yourself for this: nine out of 10 times, delivery occasions start with a known restaurant brand.

Yes, you read that correctly.

Remember those daily conversations with your co-workers, friends, and family? The never-ending back-and-forth of “What do you want to eat?” and “I don’t know, what do you feel like?” Well, guess what? That’s where it all begins. The decision-making process for dine-in, carryout, or delivery starts way before customers consider which restaurant to choose. 

So, don’t be fooled by the notion that customers spend ages scrolling through endless options on delivery apps. The truth is, the majority of the time, delivery customers have a specific restaurant already decided when they go online or to apps to place the order. 

Not surprisingly, Gen Z and Millennials are more likely to scroll, but it’s only 3 out of 10 occasions, leaving the other seven out of 10 to start already knowing the restaurant.

Ready to uncover more delivery secrets?

Myth No. 2: Convenience rules: Consumers have patience and forgiveness when it comes to delivery. 

Fact: Frustrations are high and patience is low.

Fifty percent of past 30-day quick-service delivery consumers report that delivery “prices have gone up too much.” And those pesky delivery fees? Forty-seven percent say that they have “gone up too much” as well (plus 12 points since April). By the time checkout is reached, consumers are often left in sticker shock, yet still they place the order. Yet, the lingering shock is not forgotten next time around. 

With prices and fees soaring, the expectations and frustrations are as well. Recently, the experiences across the board just haven’t been holding up. Slower than normal delivery times (30 percent, plus 5 points) and inaccurate orders (23 percent, plus 4 points) were other key problems that frustrate delivery customers. Those issues are catching up with operators as consumers tap out of using delivery altogether. Our recent data shows that 18 percent of past month delivery users report “It’s not worth it anymore”—that is a VERY BIG number.

Survey data was collected the week ending May 25, 2023, by Lisa W. Miller & Associates and Prodege, LLC from a representative sample of 1,000 adults ages 18 years and older.

Read the full article here!