Third-Party Food Delivery Services:
Navigating the Ever-Changing Waters
A report generated by the analysts at Morgan Stanley in July 2016 calculated that the restaurant industry in the United States generates nearly $500 billion per year in revenue comprised of dine-in, carry-out, and delivery orders. Of this $500 billion, the delivery market carves out a $30 billion share, of which $11 billion is generated from online orders. This $11 billion estimate is only the tip of the iceberg, with Morgan Stanley estimating that the total food delivery market should be valued at $210 billion.
Entrepreneurs and investors have certainly taken note of this potential, resulting in a tremendous amount of growth for companies that offer food delivery services. But in a sea of investment and development, the question remains – how does changing market for food delivery affect restaurants? Restaurant owners, both large and small, are now shifting their business practices to make room for these new food delivery services, and those changes have led to new benefits, struggles, challenges and costs.
Download this whitepaper to examine some of the common issues that impact your restaurant business and brand when it comes to 3rd party food delivery.