16/08/2017
Take-away food is a booming industry and so is online shopping, so it was only a matter of time before the two converged and became one single mega-industry on the up-and-up.
With a mix of consumer demand and high finance, the industry has been able to meet its potential and more, turning a handsome profit for web developers and investors alike.
And there is plenty of room left to grow. In the UK, it is estimated that we will spend £7 billion on take-aways by 2020, as we cook less at home. That’s three times more than the £2 billion we spent in 2015.
As with all industries, much of this growth is expected to be online. Domino’s pizza, for example, has seen a huge upswing in revenue from this source, with online orders making up 75% of total orders, and 61% of these come from smart phone apps. Even pubs now offer food home delivery, in a sign that even the fabric of British society may be changing.
There are a number of reasons for this sustained growth:
Smart phone apps. As with all apps, once it´s on the phone it´s all too easy to order. No searching around for the number and no time to change your mind.
Aggregating websites, allowing users to compare prices and deals quickly and easily across restaurants and food styles before ordering. They provide a fantastic service and are highly popular.
Affordability. Eating out just isn’t as expensive as it once was, and as such it has become less of a treat and more of a trend.
The rise of the on-the-go lifestyle. Youngsters especially live fast and eat out, but both parents in many families work full time, and many individuals face increased pressure to work longer hours.
Third party deliver companies. UberEats, Amazon and Deliveroo all offer delivery services, meaning popular restaurants can outsource reliably. Even local restaurants are able to enter the market this way, which could be one of the reasons for the rapid growth. Deliveroo saw its profits increase 650% in 2016
The range of food available. Many people now have specific dietary requirements, all of which are catered for by somebody or something.
In another sign of the robust growth of the sector, a delivery driver ‘crunch’ is forecast for autumn 2017, with one company stating they will be short 1000 drivers as the nights draw in. This could mean higher wages for drivers, but it’s not all good news for those looking to make a little extra cash in the gig economy, as drones will be used more and more to deliver the food in the near future.
However, despite all this rapid growth, there is some evidence that the online take-away market has matured and is now expected to grow at a more steady 3.5% per year. In addition, popular restaurants can find themselves struggling to know who to prioritise, diners or home-delivery customers, so a new approach may be necessary for those looking to grow their online business without destroying the eat-in experience.
There are also the potential adverse health effects of a diet based on such calorific foods, but for now the industry shows no sign of slowing.
