Several rising trends are shaping the future of food delivery in the years to come, with food delivery apps experiencing a boom for the last couple of years. Prior to the COVID-19 epidemic, the global food delivery industry grew steadily. However, when lockdowns were implemented around the globe, that growth rocketed. Within the past year alone, the industry has tripled its value.
As a result of the Covid-19 pandemic, hyper-growth has been accelerated, but the model was made possible by (relatively) recent innovations in fleet types and delivery models, such as same-hour delivery, same-day delivery, next-day delivery, single and multi-fleet delivery, and in-house and crowd-sourced delivery.
The pandemic has upended food delivery services. Food is increasingly being purchased online rather than at a restaurant. People are ordering groceries from companies like Instacart and having them delivered. They can also purchase meal kits from restaurants and have them delivered.
Changing consumer behavior has created opportunities for the food industry, but it has also created challenges. Investing in new technology and improving customer experiences in online environments are essential for restaurants. Video on demand has become more popular than the theater in recent years, as people prefer entertainment at home. Today, people gather and socialize at home the most, which is why the online food delivery market is booming.
Several researchers are already predicting a $500 billion market for online food delivery by 2025, and delivery penetration could reach double digits. So what trends will hold the position? What are the major trends that are here to stay? Let’s dig in detail.
How Will COVID-19 Impact Online Food Delivery?
Source: Business Wire
Regarding the effects of COVID-19 on restaurants, there are two sides to the story. Despite the fact that most restaurant businesses have seen their sizes shrink, overall revenues have also increased. So it has become imperative for restaurants to leverage advanced and feature-rich food delivery software to stay afloat in the highly volatile market. The following are the reasons why online food delivery services were least affected by COVID-19:
- Maintaining social distance is a new norm as people agree to keep it
- Multiple features are available to satisfy different budgets, requirements, and preferences
- The convenience of getting whatever a diner wants without leaving the apartment
- And immediate on-demand service (in less than an hour)
Reports from credible sources indicate that the global lockdown has led to a more than doubled business for on-demand food delivery solutions. Restaurants are still seeking a solution to some of the challenges associated with the lockdown, and digital ordering, ghost kitchens, robot delivery, etc., are among them.
Trends in Food Delivery Businesses for 2022
Restaurants have improved their delivery processes and now offer a seamless delivery service over the past year. 2022 is creeping closer and closer each day, so it appears that this explosion of food delivery options will be here for a long time. Read on to discover which trends will persist and grow in 2022 after a variety of new food delivery trends took off in 2021.
Significant Rise in Third-party Deliveries
As prepared meal service demand increases, this trend is already on steroids. Increasingly, restaurants partner with third-party food delivery services to reach customers outside their immediate surroundings. Third-party delivery services have taken over the logistics of delivering food to customers, allowing restaurants to focus on their core business. In this manner, they are able to stay focused on the core business aspect of their operation, churning out gourmet meals as quickly as the orders come in.
A ghost kitchen, which is also called an off-premise kitchen, lets restaurants with small kitchens deliver food to their customers. Many hospitality and restaurant groups can pool their resources to save on utilities, equipment, and staffing during peak times. Because these facilities do not have to be in prime real estate locations, restaurants can offer delivery services at a more affordable price. Ghost kitchens are likely to become more popular as we see more food delivery options available.
Diverse Channels to Place Orders
As per the survey, at least 65% of Americans abandoned digital orders due to a poor customer experience. In addition, around 55% of Americans prefer a user-friendly application. Maintaining the existing platforms and updating them is needed to make placing orders as smooth as possible.
As technology advances, platforms will be able to place orders in multiple ways, such as with social media, smart devices, virtual assistants, and more. A few of them are mentioned below,
- Via Tweet
- Via Smartwatch
- Via Car
- Via Facebook Messenger
QR Code Technology
Currently, you won’t receive a printed menu when you visit a restaurant. Instead, you scan QR codes to see the entire menu. Users can be sure that they only touch their devices, which is convenient. Globally, the trend has already spread. Its popularity only grows with COVID-19. Having a QR code as an option on an up-to-date gadget is the most important requirement. There are other uses of QR codes besides checking in and managing bills. Customers will benefit from this business innovation.
Increasing numbers of restaurants are adopting zero-waste practices to benefit the environment, among many other reasons. Across the globe, more and more restaurants are beginning to serve their food in reusable containers. In these restaurants, customers are charged a flat fee per container that they are refunded once the container is returned.
In 2022, you will likely see reusable delivery containers from your local restaurants as both food delivery, and zero waste options prevail.
Capitalize on These Trends to Flourish
We have changed how we dine and order food at home because of the food delivery business. Now that it has become necessary for everyone to order their favorite food, it has evolved from being merely an option for people to sit at home and relax.
It is expected that the industry will undergo significant changes in the years to come, not only in terms of the major players but also in the way delivery apps operate. This indicates that mobile ordering will continue to grow, improve, and flourish no matter what the future holds for the industry.