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Technomic study confirms that consumers blame restaurants for third-party delivery service mistakes

Technomic Inc.’s On Demand Delivery report provides the size of the restaurant food and beverage delivery market, along with insights and expert analysis of the implications for the restaurant industry.

CHICAGO, August 23rd, 2016—Technomic Inc.’s recently completed On Demand Delivery: Disrupting the Future of Foodservice study confirms that even if restaurants have a formal agreement with third-party ordering portals and delivery services, the majority of consumers (76%) hold the restaurant at least partially responsible for any errors.

“This puts operators’ brand reputation at risk each time a customer orders delivery through these services”, says Melissa Wilson, a Principal at Technomic Inc. “Even if delivery is not a current strategic initiative, operators should educate themselves about and understand the dynamics of the third party delivery market so they can put guardrails in place to maintain quality and brand reputation.”

The On Demand Delivery study helps operators and third-party delivery services interpret the evolving dynamics with this distribution channel to strengthen their ability to create effective strategies for capitalizing on this emerging trend, devising plans related to the potential impact on operations, product mix and store design or developing their own delivery offering.

Additional findings from this study include:

  • Third-party services are generating additional business for casual dining restaurants and other concepts that do not offer delivery: More than a third (34%) of third-party users reported ordering from casual dining restaurants and 14% had ordered from family style restaurants that do not offer delivery on their own.
  • Chain restaurants are almost twice as likely as independents to receive delivery orders: Two thirds of delivery orders either placed directly with a restaurant (69%) or via a third-party service (66%) were from a chain restaurant.
  • 1 in 5 third-party service users ordered a burger: Although pizza still dominates the restaurant delivery space, third-party service users are taking advantage of the wider variety of options available and ordering items that restaurants have hesitated to offer for delivery themselves.

The data, rankings and insights provided in the On Demand Delivery: Disrupting the Future of Foodservice study were developed using primary research including qualitative research with third-party delivery customers and an online survey with 2,800 consumers who use either third-party delivery or restaurant-operated delivery services. Additional insights were obtained from interviews with third-party delivery providers and restaurant executives. Secondary research, including profiling of leading third-party providers also was employed.

The complete On Demand Delivery: Disrupting the Future of Foodservice study is available for purchase by contacting Patrick Noone at pnoone@technomic.com or 312-506-3852. For report details and press-related inquiries, contact Melissa Wilson at mwilson@technomic.com or 312-506-3812.

About Technomic
Technomic Inc., a Winsight company, delivers a 360-degree view of the food industry. It impacts growth and profitability for clients by providing consumer-grounded vision and channel-relevant strategic insights. Its services range from major research studies and management consulting solutions to online databases and simple fact-finding assignments. Its clients include food manufacturers and distributors, restaurants and retailers, other foodservice organizations, and various institutions aligned with the food industry. Visit Technomic at technomic.com.

About Winsight, LLC
Winsight LLC is a recognized leader in business-to-business media and information services for the convenience-retailing, foodservice and grocery industries. Winsight has an extensive media portfolio, including five publications: CSP, Restaurant BusinessFoodService DirectorConvenience Store Products, and Winsight Grocery Business. Winsight also offers a suite of digital products, including websites, e-newsletters, webinars, video products, mobile and tablet apps, and custom marketing solutions. In addition to more than 12 major EduNetworking conferences and advisory meetings, Winsight also produces seven exclusive, large-scale executive-level conferences: Restaurant Leadership Conference, Global Restaurant Leadership ConferenceOutlook Leadership Conference, Convenience Retailing University, FSTECMenuDirections and Restaurant Directions. In 2015, Winsight acquired Technomic Inc., a provider of primary and secondary market information and advisory services for the food industry. For more information on Winsight and its brands, go to www.winsightmedia.com.

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