NPD: Digital Restaurant Orders Growing by Double-Digits
CHICAGO — Digital restaurant orders are seeing steady, double-digit growth, reported The NPD Group.
Over the past four years, meals or snacks ordered via mobile app, internet or text message have grown 23 percent and currently represent 3.1 billion visits and $26.8 billion.
Digital orders are forecasted to continue to grow by double digits through 2020 with growth across all service models, including delivery, on-premise and carryout, according to NPD's Delivering Digital Convenience report.
While convenience is the main reason consumers choose digital ordering, other major reasons include: no waiting; the ability to order, pay and have it ready; ordering at their own pace; and earning rewards/feeling valued.
Additionally, as mobile apps represent 60 percent of digital orders, users of leading restaurant brand apps are also drawn to motivations such as saving money, customizing orders, ordering on the way and earning rewards, NPD found.
"Digital ordering has raised the bar on convenience and with it the customer experience," says David Portalatin, NPD food industry advisor and author of Eating Patterns in America. "Digital ordering overall and apps have provided a path to market to consumers on a one-to-one basis and offer them a restaurant experience customized to their needs."
Loyalty rewards in particular have been successful in getting customers to keep using restaurant brand apps. These types of loyalty programs offer a compelling reason for them to keep a larger number of restaurant apps on their phones, which helps to ensure the success of newer entrants in gaining mobile phone real estate, NPD said. An app on a phone helps increase usage because it is top of mind when a consumer is deciding what and where to order.