How is the restaurant sales and home delivery market doing ?
The food service market has been very competitive in recent years. In fact, restaurants were doing very well before this global pandemic. Several of them were even able to create positions within their companies to open a home delivery service. This service has always worked, even during the containment period. Nevertheless, how is this service doing ?
Restaurants have understood this, in order to function a little better you have to put a foot in the meal delivery service. This market is all the more democratized because people are more and more demanding. According to the figures announced by Research and Markets in 2019, the home delivery business in restaurants brought in 81.6 billion dollars. R&M also predicted that the home delivery market in the restaurant business is expected to grow by 10% per year until 2026.
However, the Covid-19 crisis has hit the restaurant business. According to Food Service, the overall turnover of the catering industry collapsed sharply. In January, it would have fallen by 1%. February was impacted by 4%. The first fortnight of March, when the pandemic spread more intensely, reduced sales by 15%. In the last two weeks of March, the restaurant industry reported a 74% loss in sales. On average, a restaurant lost 16% of its revenue in the first quarter of 2020. What kept it afloat was the sale and delivery of meals at home. Many restaurateurs already had this service in their establishment. Others have only recently started to save their business.
Sales and home delivery up sharply
It’s really this service that has really brought a lot of restaurateurs out of the water. Indeed, after an average 16% drop in the first quarter of 2020, these restaurant chefs could not afford to suffer any further losses. That’s why this service has been intensified, but for how long? We know that many of you prefer to go to restaurants. Nevertheless, this service has won over a lot of people, especially in the countryside where restaurant owners used to deliver the meals themselves. This sales and delivery service is more widespread in large cities where players such as Uber Eats, Deliveroo or even Just Eat have a virtual monopoly on delivery.
Why so much enthusiasm for this service ?
The French rushed on this click & connect system which made it possible to keep part of the restoration afloat. The advantage is that the customer orders his dish directly via the site, phone or the application to be delivered quickly at home or at work. Fast and eating on the go is the new motto of millions of French people. According to some studies conducted by Food Service, a customer takes about thirty minutes to eat and go back to work. Delivered quickly, eating quickly for cheap is what this style of service is based on. Have you tried this kind of service ?