WASHINGTON – Citing a recent Mintel report, The Washington Post reports that Americans “increasingly don’t want to leave their homes—not even for food.” In fact, nearly 60% of respondents say they rely on at-home food delivery just to avoid “venturing out into the world.”
Mintel’s report on U.S. food delivery found that 87% of Americans who use third-party food delivery services agree that it makes their lives easier, and nearly one-third (31%) say they use these services at least twice a week. Other reasons cited for staying home and ordering in are to catch up on television and movies (41%) and to dine alone (25%).
“Restaurant delivery is a hot market right now with many companies vying for the top spots,” said Caleb Bryant, foodservice analyst at Mintel. He added that although usage is low, the third-party delivery industry is relatively new so low usage is to be expected, and it presents opportunities for growth.
“Those who do use these services tend to be millennial men living in urban areas, indicating a need for these companies to attract a more diverse consumer base,” Bryant said in a press release. “Delivery cannot compete with the entire restaurant experience, but third-party companies can work at increasing the incidence of restaurant delivery by highlighting the benefits of having food delivered directly to the consumer.”
Bryant added that young men “are the heaviest restaurant users across the board … They’re willing to spend a bit more on convenience.”
Americans who have not used a third-party restaurant delivery service say fast delivery (31%), restaurant selection (28%), low order minimums (27%) and first-use coupons (26%) would motivate them to try it. However, there may be no convincing the older generations: More than half (53%) of non-users age 55+ say nothing would motivate them to use these services, compared to 11% of non-users aged 18-24 and one-third (33%) of non-users overall.
To keep pace with at-home delivery options, companies such as Amazon, Uber and Google have added restaurant-delivery services in recent months, writes The Post, noting that revenue at Grubhub, one of the largest delivery companies in the U.S., hit a record $120.2 million last quarter. The company processes about 271,100 deliveries per day, which is more than double its volume of three years ago.
“We have made great strides with delivery, including three acquisitions,” Grubhub CEO Matt Maloney commented to investors earlier this year. The Post notes that much of this growth is being driven by millennials, “who increasingly value convenience over cost.”
Bryant at Mintel observed that at-home food delivery “is really about convenience … People can get restaurant-quality meals at home, without having to gather together their friends or significant others.”