The Online Food Ordering Revolution
Fedi El-Daher
Former Relationship Manager (The b!te Network)
Today, online ordering has become the norm in the restaurant industry. Whether consumers prefer takeout or delivery, the effect is the same: off-premise dining is booming, and online ordering is the standard.
1. The Rise In Online Ordering
The rise in online ordering started over the last five years, but in 2020, we saw the certainty of how important it was. Many restaurants quickly adopted online ordering to keep their business afloat during COVID and cater to their customers’ needs.
Mobile and online ordering have skyrocketed across all industries because of its convenience. Online ordering solutions allow you to serve your guests more efficiently, add an additional revenue stream, and boost your online presence.
Does your restaurant offer online ordering? Check out the top 25 must-know stats that prove how powerful online ordering is.
2. Why Do People Order Food Online?
Online ordering food is the best way of avoiding cooking. Recent research shows that almost four out of four customers use an app for ordering food on their mobile. Online food delivery is revolutionizing the global food market. This trend was first seen in urban communities, and it has now spread to other areas.
The growth can be attributed to the fact that in this corporate-driven society, where time is of greater importance than everything else, having a door-step restaurant is a lucrative option. Workers who work 9 am to 5 p.m., students and jobholders working from home are at risk of eating unhealthy and unhygienic meals.
The old scenario of women cooking at home is being replaced by women who are more ambitious, capable, and aspirational.
Humans are always hungry for new flavors, delicious cuisines, or mouth-watering food. People love variety and so many people choose to order online food delivery. They can have their favorite cuisine delivered directly to their home. Food is known for building connections between people.
3. Statistics
- Online food ordering has grown 300% faster than dine-in since 2014 and now accounts for roughly 40% of the total restaurant sales.
- Revenue in the Online Food Delivery segment is projected to reach U.S. $339,257 million in 2022.
- Online food delivery revenue is expected to show an annual growth rate of 8.29%, resulting in a projected market volume of U.S. $466,472 million by 2026.
- Nearly 60% of diners expect to order more online in 2022. Of those diners, 42% plan to order somewhat or significantly more directly from restaurants, 3x more than those who plan to order more from third-party apps (14%).
- More restaurant customers are tapping mobile devices, with one-third (35%) placing more orders on apps compared to three months ago, and customers are likely to spend more when ordering via a restaurant app.
- Restaurants with an online ordering system are able to raise their takeout profits by 30% higher than those who do not.
- In 2022, the number of Americans using apps to order food and other groceries is expected to rise from 27.9 million to 30.4 million.
- About 92% of all top-performing restaurants offered mobile order-ahead and loyalty rewards programs or a combination of both.
- Nearly 28% of people ordered food online to save time from cooking and cleaning.
- Over 80% of restaurants are turning to technology - like online ordering, reservation and inventory apps, and restaurant analytics - to help them run their business successfully and efficiently.
- It is projected that online ordering food revenue will rise to be $220 billion in 2023 - 40% of restaurant sales.
- There was a 54% increase in direct online order volume, year over year.
About 56% of customers and restaurant owners want online ordering in a restaurant app.
4. Top Food Delivery Apps
Uber Eats - The most widely available food delivery service, active in six continents and first or second in gross orders in most countries
Just Eat - Leader of food delivery in the UK and active in Europe and Australia, also holds a stake in Brazilian food aggregator iFood
Grubhub - Original aggregator in the US and with Seamless, controlled over 50 percent of US online food delivery up until 2018
Deliveroo - The pioneer of platform-to-consumer in the UK, it now operates in 13 countries, competing with Uber and Just Eat
DoorDash - The current leader in online food delivery in the US, which also pioneered the platform-to-consumer model
Postmates - A subsidiary of Uber Eats since 2019, responsible for about 10 percent of online food delivery in the United States
Takeaway.com - A European aggregator responsible (through subsidiaries) for most online food delivery in Germany, Netherlands and Belgium
Delivery Hero - Through its many subsidiaries (including Food Panda), Delivery Hero has a controlling interest in food delivery platforms in over 40 countries
Ele.me - Owned by Alibaba, Ele.me is one of the two major food delivery platforms in China. It has over 200 million active users
Meituan - The other half of the online food delivery industry in China. Tencent is the largest stakeholder, with a 20 percent stake
Rappi - Backed by SoftBank, Rappi has aggressively pushed into the South American market, currently active in nine countries
iFood - Brazil's most popular aggregator by a significant margin, accounting for over 70 percent of online takeaway orders in the country
Zomato - The most popular of the homegrown food delivery apps in India, which acquired Uber Eats India in January 2020
5. More Statistics
- The restaurant-to-consumer segment for online food ordering reached 760 million users, a 20% increase year-over-year.
- About 64% of consumers prefer to order digitally on-premises at a QSR.
- As of mid-November, 45% of consumers surveyed by PYMNTS/Paytronix said the ability to order online would encourage them to spend more on food, up from 37% in October. Nearly 35% said mobile app ordering, and 31% for curbside pickup said the same.
- Consumer demand for online food ordering has increased. Prior to the pandemic, 62% of U.S. consumers said they ordered food online at least once per month, while 78% said they either maintained or increased how often they ordered.
- Nearly 60% of restaurants can expect more sales when they offer online ordering.
- About 43% of people say they order online because they don’t feel like cooking.
- Around 59% of millennial restaurant orders are for takeout or delivery.
- Consumers who order pizza online spend an average of 18% more than orders placed over the phone.
- Customers who place an online order with a restaurant will visit that restaurant 67% more frequently than those who don’t.
- Around 31% of American consumers use third-party food delivery services at least twice a week.
- Curbside pickup has grown in prominence, with 67% of restaurants adding curbside delivery after March 2020, according to the National Restaurant Association.
- The average U.S. household spends $2,375 annually on dining and takeout purchases.
6. Conclusion
An online food ordering solution for restaurants and third party delivery services can do wonders for you. As a restaurant owner, this is essential since it increases the number of people who see your restaurant. It enhances your bottom line by broadening your target audience. Customers will appreciate it because it allows them to place orders quickly and easily anytime they want. They can also rest assured that when they place their orders, there will be no misunderstandings.
Don't become complacent and miss out on online ordering which comprises of approximately 40% of restaurant sales. Take advantage of rapidly developing technology and make the most of consumer trends!
Fedi El-Daher
Former Relationship Manager (The b!te Network)