Key Takeaways:
Food Delivery Is A Major Revenue Driver: Restaurants offering delivery have higher order volumes and increased revenue.
Customer Experience And Efficiency Matter: Fast delivery, proper packaging, and a smooth ordering process improve customer satisfaction and encourage repeat business.
Direct Online Ordering Maximizes Control And Profitability: Using a commission-free online ordering system like Sauce helps restaurants keep more revenue, maintain customer relationships, and provide a better ordering experience.
It’s critical.
Food delivery has become an essential part of the restaurant industry. As a result, restaurants must adapt their operations to meet this growing demand. Keeping up with food delivery trends and statistics can provide valuable insights for making smarter business decisions.
At Sauce, we have helped countless restaurants adapt to changing consumer habits with commission-free online ordering and smart delivery management. With our expertise, restaurants can take control of their delivery operations, reduce costs, and strengthen customer relationships without relying on high-commission third-party platforms.
In this article, we’ll examine how food delivery shapes the industry, what customers expect, and how restaurants can improve their operations.
Core Food Delivery Market Statistics
Food delivery has seen rapid growth in recent years. Here are some important statistics that highlight its impact on the restaurant industry:
A $150 Billion Industry And Growing: The global online food delivery market is valued at over $150 billion, with projections showing steady growth.
Frequent Ordering Habits: More than 60% of consumers order food delivery at least once a week.
Higher Revenue For Restaurants Offering Delivery: Restaurants that provide online ordering see an average of 20% more revenue than those relying solely on dine-in. Customers spend more per order online ordering, often adding extra items like drinks, sides, or desserts.
Mobile Orders Dominate The Market: Over 80% of online food orders come from mobile apps or websites.
Trends In Consumer Behavior For Food Delivery
Understanding what customers want can help restaurants improve their food delivery services. Here are some critical trends in consumer behavior:
Preference For Direct Ordering
Many customers prefer ordering directly from a restaurant’s website instead of third-party apps. They trust restaurants to provide better service, accurate pricing, and direct customer support.
Fast And Reliable Delivery
Speed matters. Most customers expect their food within 30 to 45 minutes, and long wait times can lead to fewer repeat orders. Restaurants that offer efficient delivery see higher customer satisfaction and more frequent orders.
Mobile-First Ordering
Over 80% of food delivery orders come from mobile devices. If a restaurant’s website isn’t mobile-friendly, customers are likelier to abandon their orders and go elsewhere. A simple, easy-to-use mobile ordering system ensures a smooth experience and helps capture more sales.
Loyalty To Restaurants, Not Apps
Customers often return to restaurants they’ve had good experiences with, regardless of the ordering platform. A familiar ordering process, combined with great food and service, keeps customers returning.
Impact Of Food Delivery On Restaurant Revenue
Food delivery has changed how restaurants earn revenue. It’s now a significant source of income for many businesses. Here’s how delivery affects restaurant earnings:
Higher Order Volume
Restaurants that offer delivery serve more customers than those relying only on dine-in. This is especially useful in busy cities where people prefer convenience over sitting down for a meal. Expanding delivery options allows restaurants to serve local and distant customers without needing additional physical locations.
Increased Average Order Value
Customers tend to order more when face-to-face interactions don’t limit them. Online menus encourage add-ons like appetizers, desserts, and drinks, increasing the total order amount. Many delivery orders include group meals, leading to higher revenue per transaction.
Lower Overhead Costs
A strong delivery business reduces the need for large dining spaces, cutting rent, utilities, and front-of-house staff expenses. Some restaurants operate delivery-only kitchens, known as ghost kitchens, that run with minimal overhead. This model allows restaurants to focus purely on food preparation and order fulfillment without the costs of running a full-service dining area.
More Consistent Revenue
Delivery creates a steady income stream, even during slow hours or bad weather when foot traffic is low. Restaurants that rely solely on in-house dining see more fluctuations in revenue, while those with substantial delivery operations maintain steady daily sales. Offering online ordering also allows restaurants to capture late-night and off-peak orders that would otherwise be lost.
Popular Food Delivery Platforms And Their Market Share
Several major food delivery platforms dominate the industry, each with its market share and pricing model. Here’s an overview of the top platforms:
DoorDash
DoorDash is the largest food delivery service in the U.S., holding over 65% of the market share alongside its subsidiary, Caviar. DoorDash is popular in urban and suburban areas, making it a go-to option for many restaurants. Their commission fees range from 15% to 30% per order.
Uber Eats
Uber Eats holds approximately 23% of the market share and is particularly popular in cities where fast delivery is essential. Customers value the app's user-friendly interface and seamless integration with the Uber ride-sharing platform. Restaurants typically pay commission fees ranging from 15% to 30%.
Grubhub
Once a leader in the industry, Grubhub now holds about 10% of the market but remains a strong choice in certain regions. The platform allows restaurants to customize their listing, but visibility often depends on paying for promotions. Like its competitors, Grubhub charges 15% and 30% commission rates.
Postmates
Postmates, owned by Uber Eats, has a smaller market presence but remains popular in certain cities. The platform is recognized for delivering more than just food, making it a convenient choice for many customers. Restaurants that partner with Postmates experience commission rates similar to those of Uber Eats.
Challenges Restaurants Face In Food Delivery
Food delivery offers many benefits, but it also comes with challenges that restaurant owners must manage. Here are some of the most common issues:
High Commission Fees
Third-party delivery apps take a significant percentage of each order, cutting restaurant profits. Many restaurants struggle to maintain margins while paying fees as high as 30% per order. Over time, these costs increase, making it harder for independent restaurants to compete with larger chains.
Maintaining Food Quality
Delivering hot and fresh food is a challenge. Poor packaging can cause spills, make food soggy, or result in cold meals. These issues can disappoint customers and hurt a restaurant's reputation.
Managing Delivery Logistics
Restaurants relying on third-party apps have little control over delivery times and driver reliability. If a driver arrives late or mishandles an order, the restaurant often takes the blame, even when it’s not their fault. Without a direct ordering system, businesses can’t guarantee a smooth customer experience.
Customer Data Ownership
When customers place orders through third-party platforms, restaurants often do not receive their contact information. This lack of access makes it challenging for restaurants to offer promotions, loyalty programs, or personalized services that can encourage repeat business. Without direct access to customer data, restaurants miss valuable opportunities to strengthen relationships and boost long-term sales.
Balancing Dine-In And Delivery
Handling both dine-in customers and online orders during peak hours can overwhelm kitchen staff. If not managed properly, this can lead to longer wait times, order mistakes, and lower customer satisfaction. A well-organized system helps restaurants streamline operations without disrupting dine-in service.
Strategies To Optimize Food Delivery Operations
Use A Commission-Free Online Ordering System
Third-party platforms often charge high commission fees, reducing restaurant profits. A direct ordering system like Sauce allows restaurants to accept online orders without paying up to 30% per transaction.
Improve Packaging For Delivery
Poor packaging leads to spills, cold food, and unhappy customers. Restaurants should use insulated containers for hot meals and vented packaging for crispy items to prevent sogginess. Investing in quality packaging ensures that food arrives in the best possible condition.
Streamline Kitchen Workflow
If not managed properly, handling both dine-in and delivery orders can slow down service. Restaurants should set up a dedicated prep station for online orders to keep the kitchen running smoothly. This helps staff focus on getting meals out quickly while maintaining quality.
Offer Delivery Promotions
Customers are more likely to order directly from a restaurant if they get an exclusive deal. Offering discounts or bundle specials on a restaurant’s website encourages repeat business and reduces reliance on third-party platforms. Promotions also help restaurants compete with food delivery apps that offer incentives for customer loyalty.
Collect Customer Data For Marketing
When customers order through third-party apps, restaurants don’t get access to their contact information. A direct ordering system like Sauce allows restaurants to collect emails and phone numbers for marketing campaigns. With this data, businesses can send promotions, loyalty rewards, and personalized offers to encourage repeat customers.
Final Thoughts
Food delivery is no longer just an extra service — it’s a significant source of revenue for restaurants. As consumer demand for convenience grows, restaurants that offer online ordering and delivery have a competitive edge.
Focusing on direct ordering, innovative packaging, and efficient kitchen operations leads to better service and higher profits. Restaurants that embrace these strategies stay ahead in the competitive food delivery market.
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Frequently Asked Questions About Food Delivery Statistics
Is food delivery slowing down?
Food delivery saw explosive growth during the pandemic, but its pace has stabilized. While people have returned to dining out, delivery remains a regular habit for many consumers. The industry is still expanding, with new trends like direct restaurant ordering gaining traction.
What food delivery is used most?
In the U.S., DoorDash is the most widely used food delivery platform, handling most online food orders. Uber Eats is the second most popular service, especially in urban areas. However, many restaurants now encourage direct ordering to avoid costly third-party fees.
Why is it important to have food delivery?
Food delivery helps restaurants reach more customers, increase revenue, and provide convenience. It also allows businesses to operate beyond regular dine-in hours, leading to more daily sales. Customers expect easy ordering options, making delivery a must for modern restaurants.
How many people prefer to order food online?
Over 60% of consumers prefer ordering food online instead of dining out. Mobile-friendly websites and apps have made digital ordering the preferred choice for many customers. Restaurants with commission-free online ordering systems can meet this demand while keeping more of their profits.
How many food delivery users are there?
There are hundreds of millions of food delivery users worldwide, and the number continues to grow. In the U.S. alone, more than 100 million people use food delivery apps regularly. Many users order at least once a week, making delivery an integral part of the restaurant industry.
What is the most ordered food online?
Pizza, burgers, and sushi are among the most frequently ordered delivery foods. Comfort foods like fried chicken, tacos, and pasta are also highly popular. Restaurants offering these dishes with fast and reliable delivery tend to see more repeat orders.
Do people eat out less now?
Yes, online ordering has changed how people dine, with many choosing delivery over eating out. While dine-in traffic has rebounded, food delivery remains strong, especially for busy consumers.
What is the largest market for food delivery?
The United States, China, and Europe are the most significant food delivery markets. The U.S. generates billions in revenue annually, with platforms like DoorDash, Uber Eats, and Grubhub leading the industry.
Why do people order food online?
People order food online for convenience, time savings, and variety. Many customers prefer delivery when they are too busy to cook or want restaurant-quality meals at home.
What types of food are good for delivery?
Foods that travel well, such as pizza, sandwiches, fried chicken, and pasta, are ideal for delivery. Meals that maintain temperature and texture during transport are the most successful.
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