Brizo FoodMetrics recently launched Cooking Up Insights, our new webinar series. The inaugural webisode focused on online ordering solutions for restaurants and was moderated by Brizo’s own Bob Plummer with special guest Mike Wior, founder and former CEO of Omnivore. Here are four key takeaways.
Diner demand will increase signficantly.
Driven by changes in diner behavior thanks to the ongoing pandemic, demand for online food delivery will increase. In 2022, Morgan Stanley predicts that online ordering will account for a whopping 30% of total restaurant industry growth. In less than 10 years, UBS has forecasted that online ordering sales could increase worldwide by as much as 20% per year, growing from $35 billion to $365 billion by the year 2030. Despite the possibilities for increased revenue, not all operators are happy about the shift in behavior. Mike Wior, co-founder and former CEO of Omnivore, says, “I think if you asked a lot of restaurant operators if it were up to them, would they be operating in this modality today, you would get a lot of noes.”
Leading solutions providers have already emerged.
While Brizo has identified more than 280 online ordering solutions providers, several are making serious in-roads in becoming market leaders. According to Brizo data, the top providers are currently Toast, Olo, ChowNow, OpenCart, and Square. An additional 18 providers, including Upserve, Menufy, and BentoBox, have made significant inroads as well.
There are opportunities for online ordering solutions to grow.
Of the nearly 900,000 restaurants in North America, just over 214,000 utilize online ordering solutions. Clearly, an opportunity exists for current players, like Toast, to grow their reach. This also leaves ample chances for disruptors to capture market share. The top markets for online ordering solutions are New York, Los Angeles, Chicago, Dallas, and Washington, D.C. Opportunities in markets that have seen spikes in population thanks to the great pandemic migration, like cities in Idaho, Tennessee, and Florida, abound.
Online ordering apps are here to stay.
The most popular delivery apps – DoorDash, UberEats, and GrubHub – surged in popularity during the pandemic. According to research by management consulting firm McKinsey & Company, the U.S. market “has more than doubled during the COVID-19 pandemic, following healthy historical growth of 8 percent .” While some restaurant operators have bristled at the fees they incur by utilizing third-party delivery apps, Mike Wior believes the apps aren’t going anywhere anytime soon. “I think that restaurants have accepted it as a fact of life. I don’t see that they’re super happy about it. But like all things where consumers are pushing demand, the industry will evolve and adapt and restaurants will come to a point where it’s profitable, it makes sense, they’re efficient at it, and it’s easy to manage,” he says. Existing and new solutions will help. “We’ll see more efficiencies through technology and better margins,” Wior adds. Brizo Data provides the strategic restaurant industry data you need to win in your market. We have tracked thousands of data points for nearly 900,000 restaurants across North America to create real-time industry insights to help you make informed business decisions. If you missed joining us, you can view Webisode 1 here. And, be sure to subscribe for updates so you won’t miss future events. To get started with a free Brizo trial, contact email@example.com or click here to Get Started for FREE’.