U.S. Consumer Dining Habits
The 12 different insights or facts into U.S. Consumer Dining Habits are convenience, delivery services, revenue changes, 2019 projections, same meal location choices, and seasonal impact on consumer choices. Included below are the reasons for the shift on dining behavior, third party delivery services as ranked by restaurant owners, and comparing frustration of both dine-in and delivery customers. There was also found to be a faster than expected growth of delivery services and the gender and income breakdown of American dining consumers.
Forbes Magazine states, "Netflix and Amazon can be credited with shifting consumer habits that are affecting the restaurant industry. Why get dressed and go out when one can have what they want at home in front of their flat screen TV?"
Insight #1 — Hyper-Convenience is Driving Choice
- In a recent survey, 82% of consumers stated convenience is a top concern when dining out, which has resulted in c-stores and grocery operators making inroads into food service.
- Restaurants that provide on-demand delivery are capitalizing on this trend.
- Over the last five years, delivery sales in the food service industry has been increasing at a 7% rate annually.
Insight #2 — delivery services
- According to recent surveys, 86% of consumers are using food delivery services at least monthly.
- A third are using it more than they did a year ago.
Insight #3 — revenue changes
- While many restaurant owners were concerned that offering delivery would simply cannibalize existing customers, that does not seem to be the case.
- About 60% of operators surveyed said delivery service had generated new sales.
- Only 11% felt that it had an impact on dine-in business.
- Just 7% said that it had a negative effect takeout sales.
Insight #4 — Projections for 2019
- Takeout for pickup is projected to generate $124 billion in sales this year 2019.
- Takeout with direct delivery from a restaurant is projected to generate $32 billion.
- Takeout with delivery from a third-party delivery company will generate $13 billion.
- Catering for pickup or delivery is projected to generate $40 billion.
Insight #5 — EAT AT Restaurant OR AT HOME
Based on a scenario, where the meals were the same on a daily basis, the following results were found on a 2017 survey, where participants were asked: "Assuming that order ahead service is available at the restaurants that you visit, how likely would you be to use it?"
- Definitely would — 8%
- Probably would — 25%
- Might or might not — 34%
- Probably not — 4%
- Definitely not —12%
insight #6 — SEASONAL IMPACT
In another 2017 survey, participants were asked "In which season do you dine out most often?" It was found that seasons have a definite impact.
INSIGHT #7 — WHY IS THIS HAPPENING
- According to Forbes Magazine, Netflix and Amazon can be credited with shifting consumer habits that are affecting the restaurant industry.
- Forbes Magazine states: "Why get dressed and go out when one can have what they want at home in front of their flat screen TV?"
INSIGHT #8 — third party delivery services
- In a survey on restaurant owners released last month, third-party delivery services were ranked Uber Eats at 31%, followed by DoorDash at 27% and GrubHub at 24%.
- When owners were asked about the main reasons for using third-party delivery services are, 50% cited “convenience,” followed by 42% with “ease of payment” and 40% with “good customer service”.
- A quarter of respondents (25%), cited that they use third-party delivery services because "they’d rather place their order online or via an app than talk to someone on the phone."
- Finally, the restaurant’s in-house delivery service was the second most used delivery service (29%) among general respondents.
Insight #9 — customer frustrations — dine in
The top five frustrations for customers when dining in include
- “the time it takes to receive their order” (35%),
- “the price of the meal and getting an order wrong” (34%),
- “not being satisfied with the quality/taste of food” (31%),
- “rude restaurant service” (30%) and
- “restaurant cleanliness” (25%).
Insight #10 — customer frustration — order in
Ordering in, however, seems to have fewer frustrations. They include:
- “the time it takes for the food to be delivered” (20%),
- “the condition of the food” (18%) and
- “missing items from my order” (14%).
INSIGHT #11 — Faster than predicted growth
In an article published last week in Seeking Alpha, the newest stats showed:
- Uber's first-quarter figures, set to be released on Thursday, are expecting bookings to double over the past year to $3 billion, much faster growth than its ride-hailing business.
- DoorDash is growing even faster.
Insight #12 — Gender and Income
In the survey from Feedstuffs, eating out includes eating in restaurants, and carry out/delivery.
- Men typically spend more per week eating out ($82), while women spend $69.
- 10% of men eat out every day, compared to only 2% of women who do.
- Those earning between $40,001 and $50,000 per year spend the most money eating out, averaging $117.82 per week, or between 12.25% and 15.31% of their yearly income.