Offering Delivery Could Help Grow Sales for Quick-Service Restaurants, Especially with Hispanics
According to Restaurant DemandTracker, a recent survey of restaurant customers in the United States, some customers are looking quick-service restaurants to offer delivery. Offering delivery is something that Burger King has already started to offer in some locations, and other quick-service restaurant chains are reported to be considering. The survey asked people who are aware of each of the twenty largest quick-service restaurant chains what changes the restaurant could make that would cause the person to visit or use that restaurant more often.
Among the top twenty quick-service chains, Wendy’s has the highest number of people, 14%, who say they would use that brand more often if delivery service was available. McDonald’s has the second-highest number at 12%, and Subway, Church’s Chicken, Popeye’s and Taco Bell each had 11% say they would use that brand more often if delivery was available. For Burger King, 8% of those aware of the brand said they would use it more often if delivery service was offered.
Analyzing the demographic profile of those who said they would like these chains to offer delivery service, our conclusion is that delivery service is particularly appealing to certain groups of people. People who are 18-34, those who are single and living alone, and lower-income restaurant-goers were more interested than other demographic groups. And Hispanics were far more interested in the idea, with 1 in 3 of those interested in delivery service being Hispanic, compared to 1 in 7 of the total population of quick-service customers being Hispanic.
“As quick-service restaurant companies consider offering delivery, it’s important to understand to which restaurant consumers that service would most appeal” said David Decker, President of Consumer Edge Insight. “Our research suggests that delivery appeals the most to young, single people living alone who therefore might not be able to justify a very high minimum order size. And Hispanics are especially interested in delivery, likely in part driven by their lower rate of car ownership. Any quick-service chain considering offering delivery should carefully consider the local market profile of each of their locations to determine which locations might make the most sense, as well as carefully considering the operational challenges of offering delivery.”
ABOUT RESTAURANT DEMANDTRACKER
Restaurant DemandTracker, a syndicated consumer research service from Consumer Edge Insight, provides an in-depth analysis each quarter of how key economic and secular factors impact restaurant demand and which brands are best-positioned to succeed. Data for the most recent Restaurant DemandTracker was collected in April 2013 via an online survey of over 3,000 US consumers, age 18 and over, designed and weighted to be representative of the US adult population that visit restaurants at least once per month. Some of the topics covered include economic factors driving changes in restaurant patronage, impact of health trends on overall patronage and by segment, changing demographic profiles of restaurant segment users, and numerous brand performance metrics. The research covers the quick-service, fast-casual, family-dining, casual-dining, fine-dining, and pizza-takeout segments in detail.