In today’s flat foodservice environment, where attracting consumers continues to be a struggle, it’s no wonder delivery has seen steady growth over the last few years. Total delivery occasions in Canada amounted to 170 million in 2016 and have increased at a relatively steady pace of one per cent year-over-year for the last five years. While this number may seem somewhat modest, the development of mobile-payment apps and third-party delivery services in recent years have provided a new and innovative type of tool that many operators are now leveraging to grow delivery orders in place of stagnant on-site traffic.
Delivery orders made via mobile apps grew by more than 15 per cent last year. Furthermore, mobile-delivery orders now make up 14 per cent of all delivery occasions in Canadian foodservice. This is relevant — especially when you compare and contrast the mobile metrics to telephone and internet ordering, both of which were down one per cent on the year in 2016.
Given that mobile ordering is driving delivery, it comes as no surprise that the QSR segment still accounts for the majority of delivery traffic. In 2016, 66 per cent of all delivery occasions were made to QSR, while the family/mid-scale segment attracted 21 per cent of delivery occasions. That said, the family/mid-scale segment actually saw an increase in delivery traffic in 2016 (six per cent growth) while QSR declined nine per cent. This divergence is being driven by family/mid-scale-style restaurants such as Swiss Chalet and St. Hubert, which successfully launched and promoted mobile apps in 2016, leading to greater demand for delivery meals overall. Furthermore, third-party delivery services such as Uber Eats are now making it easier for smaller independent operators to make a mobile connection with their customers. These services have become a key driver of delivery, especially in the case of the key millennial demographic. Millennials (18 to 34) are the drivers of delivery — accounting for 36 per cent of all delivery orders. It is also the only segment of consumers ordering more meals via delivery on a year-over-year basis.
Another reason for operators to pay attention to delivery is that compared to all other access modes, delivery garners the largest average eater-check size of $12.89. This is substantially greater than the other major access modes, where average eater-check size continues to remain below the $10 mark (on premise: $10.35, carry out: $5.90, drive thru: $4.61).
Volume 49, Number 11
Written by Robert Carter
