Technology is making life easier across many industries, with banking, weather, shopping and restaurant apps growing in popularity. A quick search of iTunes and the Google Play stores reveals there are more than 500 restaurant apps in Canada alone. And, many of those apps focus on online ordering, which is revitalizing the market in Canada.
In 2014, Canadians spent $2.1 billion on delivered restaurant meals, but consumers’ habits are shifting from ordering delivery by telephone to ordering food for delivery by other means. They’re finding the Internet and mobile devices are appealing options, which offer various choices, ratings, reviews and payment by credit or debit card.
According to NPD CREST, an increasing number of people are using the Internet for ordering delivery, with demand growing most notably in the past two years. In 2007, four per cent of delivered meals were ordered online; by the year-ending May 2014, that number had grown to 18 per cent.
The growth in restaurant deliveries came to a halt during the recession and saw declines for nearly five years in a row, but the drop in restaurant visits in Canada related to delivered meals levelled off in 2012 and grew in the past few years. The lift in visits can be attributed to the Internet, but there’s opportunity in the market as nearly 70 per cent of delivery orders are still made by telephone.
Interestingly, traditional pizza is not supporting the growth in delivered meals. Pizza outlets held a 54-per-cent share of this market in 2013, but that number has fallen to 46 per cent in one year. In fact, consumers are increasingly ordering Asian cuisine for delivery from QSR and chicken from family/mid-scale. Demand for authentic ethnic food for delivery is expected to remain strong as millennials, along with the growing immigrant population, drive demand and embrace new technology.
This all comes as busy lifestyles, long work hours and an increasing number of people living alone have fuelled greater demand for foodservice establishments, which offer quick and efficient service. So, as the use of off-premise options grows in popularity, and advancements in technology make ordering food through different media more accessible, the off-premise market is forecast to grow strongly in the next seven years. The recently released NPD report, “Vision 2020 – Future of QSR in Canada,” forecasts that QSR growth will come from increased use of off-premise venues. So, convenient delivery options that offer simple, effective technology, while connecting consumers to a restaurant, will become more common, resulting in increased restaurant use.
