A new consumer spending survey from KeyBanc Capital Markets suggests consumers are looking to increase the amount of money they spend on food-delivery services in the future, which bodes well for continued growth in the category going forward.
Asked to predict their future spending with Seamless, Postmates, DoorDash, Uber Eats, Grubhub, as well as the Domino’s, Pizza Hut and Papa John’s pizza apps, the majority of respondents in all categories indicated they would be spending moderately or significantly more on the listed restaurant platforms. Those numbers were highest for Seamless, Uber Eats and Grubhub, at 69, 63 and 65 percent of respondents. For the pizza apps, they were lumped together with 52 percent of respondents indicating increased future spending.
Notably, larger numbers of survey respondents said one of the aforementioned pizza apps was the only food delivery program they used, with a majority of Seamless, DoorDash, Grubhub, Uber Eats and Postmates customers saying they used at least one other food ordering app. KeyBanc’s analysts suggested this meant differentiation among delivery aggregators “may be limited to restaurant choice and cost” above all else. Forty-seven percent of survey respondents said they had no food delivery apps on their phone.
Looking ahead to the coming months, 55 percent of respondents said they’d be ordering the same amount of food via delivery this year, with 21 percent saying moderately more, 13 percent saying significantly more often, while 4 and 6 percent said moderately or significantly less.
As another sign that food delivery has additional room to grow, 30 percent of those surveyed said they never order ahead via a mobile app when ordering food from a restaurant for pickup. Twenty percent said they rarely did so, with 27 percent saying they did sometimes and 12 percent saying they did “about half the time.” Nine percent said they did this most of the time, with five percent saying they always ordered ahead.
More of KeyBanc’s findings are available HERE.
