Restaurant Customers Spend Twice as Much on Delivery Food Than Pickup

Restaurant Customers Spend Twice as Much on Delivery Food Than Pickup

The food delivery landscape has undergone significant transformations, shaped by shifting consumer preferences and behaviors. Recent research from PYMNTS, as part of the Connected Dining series, sheds light on these changes, revealing intriguing insights into the evolving dynamics of the food delivery market.

Average spent per person by fulfillment

Rising Average Spend per Delivery Order

At the beginning of this year, consumers were found to be spending an average of $36.20 per delivery order. This figure marks a noteworthy increase from the $21.50 per order recorded in the spring of the previous year. Perhaps even more striking is that this amount is nearly twice the average spend of $18.20 for pickup orders at restaurants.

In terms of value, delivery emerged as the highest-performing channel, boasting an average order value that was 25% higher than in-restaurant sales, which averaged $28.90 per order.

Contextualizing the Data

While the profit margins associated with delivery can be slender, the high average order value has motivated restaurants to go to great lengths to tap into the delivery marketplaces.

Even industry giants like Starbucks, the world’s largest restaurant company in terms of revenue, have recognized the importance of embracing delivery. Starbucks expanded its partnership with DoorDash at the beginning of this year, enhancing its ability to engage with customers through convenient digital experiences.

Brooke O’Berry, the former Senior Vice President of Digital Experiences at Starbucks, emphasized the significance of this move, stating, “As customer behaviors evolve, we continue to innovate the Starbucks Experience to connect with them through meaningful and valuable digital experiences. Our partnership with DoorDash allows us to provide our customers with another convenient way to enjoy Starbucks wherever they are.”

Additionally, even long-standing aggregator holdout Domino’s Pizza recently yielded to the allure of delivery marketplaces. Domino’s announced a partnership with Uber Eats last month, enabling its presence on Uber Eats’ platform while retaining fulfillment through Domino’s in-house network of drivers.

Domino’s CEO Russell Weiner explained the strategic shift, noting, “Now that aggregators are at scale, the next logical marketplace for us to enter is order aggregation. Our research in the U.S. and learnings from 13 of our international markets has shown us that taking orders using the Uber Eats Marketplace provides access for Domino’s and its franchisees to a new segment of customers and what we believe will be a meaningful amount of incremental delivery orders once it’s widely available.”

These developments underscore the ever-changing dynamics of the food delivery landscape, where restaurants are adapting to consumer preferences by embracing the delivery marketplace to reach a broader audience and capture incremental orders. As consumers continue to reshape their dining habits, the industry’s ability to innovate and cater to their evolving needs will remain essential for sustained success.

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