MegaTrends shed light on how different industries are collaborating together to shape a new future society. Read MegaTrends to gain a glimpse as to what products or services will become standards in the near future.
Food Market Megatrends
The next global MegaTrend is food apps that provide food delivery services to free-app users. According to a Bank of America/Merrill Lynch study, this market is driven by Millennials because of their preference toward digital, mobile app-ordering. In this study, 62% of people who order online do so because of convenience and 19% do so because it is faster than ordering over the phone.
Take-out is a $68 billion market in the United States with room for growth (Bank of America). Specific to mobile, about 40% of Domino’s pizzas are ordered through their delivery app. Other companies have also sprouted with app-only services such as restaurant food delivery, commissary-based food delivery, and meal kits. App-only companies such as GrubHub, Munchery and Blue Apron have become an American phenomenon with rapid growth globally.
Through these companies, users can search restaurants and menus by name, location, cuisine, price, delivery time among others. The user pays for the order through the site and the order is automatically sent to the restaurant. Depending upon the app, the company would deliver or the restaurant would deliver the order to the client. The app-company either keeps a portion of the gross sales or charges a flat fee to the restaurant for the service.
1. Restaurant Delivery Apps
According to Venture Foods, 28% of consumers are ordering food for delivery more often now than two years ago. Busy work schedules are driving the demand this service. Companies such as US-based GrubHub, with 65million annual orders, and UK-based Just Eat, with 33million annual orders, are capitalizing on this need. They partner with restaurants to manage app-based ordering, pick-up and delivery of food to the home or office. Future trends in this sector will include enhanced app features to enable seamless ordering, payment and delivery; restaurant meal subscription services, faster food to-go services.
Venture Foods reported more future trends that include apps with menus that specify diet restrictions, transparency in ingredient sources, and tools to allow users to choose healthier options. Another trend is group-ordering where 64% of consumers report group-ordering as important. Therefore, there will be an increase in group loyalty programs and group ordering integrated into social media and game consoles.
Online-ordering through individual restaurant apps and web pages is also a trend to increase sales volume for popular food chains. “You might not realize it, but every time you order dinner digitally, you subconsciously order more–whether it’s Domino’s, deli food, or your favorite delivery app,” according to Fast Company.
2. Chef Delivery
These app-based services pre-prepare food in commissaries for subscribers to their plans. Munchery and Sprig for example are app-only services that by-passes the restaurant altogether for a pre-set menu of options that subscribers can choose from for delivery.
3. Meal-Kit Subscriptions
According to Venture Foods, 29% of consumers would use a meal-kit service to save time on cooking. Services such as Hello Fresh and Blue Apron have become the ‘go-to’ companies for meal-kits. These companies typically deliver fresh ingredients using a subscription-based business model for $10-$12 per meal. Drivers for this trend include time savings, meal planning, local sourcing, foodie recipes and healthy meal options. Future trends in this sector will include more deals and value, increased locally sourced ingredients, and emphasis on hard to replicate recipes.
These MegaTrends are changing the face of how customers interact with food and may ultimately change the restaurant industry as a result.