Are millennials the food delivery generation?

Introduction

The millennial generation, a demographic categorization for those born between 1981 and 1996, are quite commonly found to be at the centre of debates and discussions. Though they were born and brought up in an environment where technology started to infiltrate individuals and households and gain pace at that time, the millennials are also described as one of the most adaptive and creative generations.

Millennials also known as Generation Y or the net generation represent the cohort that just about grew up with computers and internet. Millennials are the people that are pretty good at multitasking- watching a thriller series with the television in front, working on the laptop, while simultaneously browsing through the food delivery apps on their mobiles to order a savoring meal of their choice. As of the year 2021, millennials are changing and redefining the way food deliveries are done.

Millennials and food delivery

With millennials being good at multi-tasking on one hand and averaging more work hours per day (4.2 hours) than non-millennials on the other hand, as a study reveals, they are likely to have less time to cook for themselves. Had it been for cooking, a lot of time of theirs would have gone into arranging for the ingredients and planning what to cook. With the advent of online food delivery software and apps, the overworked millennials don’t have to compromise on their work to order online food. After all, working for longer hours during the day, makes one realize that the best thing they can turn towards is a food delivery app- one that offers them the ease and convenience to order food at their whims and wishes.

Millennials are three times more likely to order in than their parents - making them the largest demographic cohort for food delivery apps. But, what is so interesting- or anything conspicuous about food delivery apps that is increasingly attracting a millennial’s wallet and how can your restaurant or culinary business acquire more of this high-spending demographic? Let’s take a look.

Tracking the food delivery trends as of 2021: Millennials and food delivery app subscriptions

Whether it’s an offer from the food delivery app platform or the restaurant itself, this is an established fact that millennials are drawn to high discounts and affordable prices. In fact, as per a report, 8 in 10 millennials have used a discount code or coupon in the last 12 months and, today, millennials are saving more money than they ever have, any time before.

Millennials are avid bargain hunters. One fine way through which food delivery apps can leverage millennials' desire to save, is by minimizing fees that comes along with a subscription model. Millennials are more likely to sign onto a subscription service than any other generation, and 77% of millennials participate in loyalty reward programs. And guess what’s more in store for the restaurant marketers and food delivery businesses? Not only are millennials more likely to make repeat visits to your establishment, website or app to build their rewards portfolio, certain statistics and data are strong evidence that they buy more. According to a study by e-Marketer, one-third of millennials report buying something they didn’t need or want just to earn points or increase their membership status.

There must not be an iota of doubt that a subscription model can save millennials a lot of money in the long run by lowering delivery fees and offering them customized and exclusive deals. For example, your business can work upon creating a subscription model where delivery is free when the order is over and above $10. This, in all likelihood, will eventually encourage millennials to order more from the concerned business or restaurant. Going a step beyond this, a food business or a culinary entrepreneur can also go about offering and promoting discount days where featured restaurants are discounted for all subscribers.

As food delivery services continue to pick up pace and witness a steady rise across the globe, businesses are realizing the power of subscription models- which is pretty enormous. It is something top food delivery apps- like DoorDash and Uber Eats, have already realized. On top of the free delivery that Uber Eats offers with its subscription service, they also provide discounts to the subscribers on the orders. Offering subscription services has just about proven to be successful in attracting the millennial generation to modern day food delivery apps, thereby bringing increased visibility and driving in more sales for restaurants and culinary businesses.

Statistics that speak volumes about millennials and the food delivery space

• A study from NPD Group found that millennials, whom it defines as those falling between 21 to 36 years of age, see dinner as an experience.

• Millennial consumers are more attracted than their elders to cooking at home, ordering delivery from restaurants and eating quickly, in fast-casual or quick-serve restaurants, according to an article published in ‘The Forbes.’

• In the similar article, it was mentioned that time-starved and convenience-seeking consumers, led by millennials are showing a growing appetite for having food delivered at their home.

• One in three food delivery consumers is a millennial.

• 57 percent of millennials want restaurant food delivered to their doorstep so they can watch movies and TV shows at home.

• 59 percent of restaurant orders from millennials are either takeout or delivery.

• 64 percent of millennial respondents say that food delivery and takeout are essential part of their living.

• According to a 2020 National Restaurant Association study, ‘millennials are the food delivery generation.’ Three-quarters of millennial respondents had ordered takeout or delivery for dinner in the last seven days.

• 35% of delivery and takeout customers – and a whopping 53% of millennial customers - said they would be more likely to order from a restaurant that offered to-go alcoholic beverages.

Future of food delivery with millennials at the helm

With millennials putting immense trust in food delivery services and relying on them too much too often, there exists little confusion about the fact that food deliveries have become an integral part of their lifestyles and an essential component of living for people belonging to whatsoever generational cohort. With a greater number of food delivery software and apps, strongly backed by advanced technological mechanisms and improved automated features, coming on the forefront, restaurants and culinary entrepreneurs can make the food delivery space a prosperous one. One thing that needs to be understood and taken care of by businesses is that the culture of online ordering is growing and if hungry consumers can’t order from your restaurant, they’ll order it from your rival businesses. And no prudent business would want that.

Millennials just want a good and satisfying experience. They want ordering ease and convenience when they are buying food online. Restaurants and food businesses, by virtue of possessing efficient food delivery software and apps, would have to adapt to them. They can’t be sceptical about or scared to use technology because it’s something that can only benefit them by saving time, reducing procedural bottlenecks and eliminating errors.

Wrapping up

The world of online food delivery is changing rapidly. The millennial cohort in general and techno-savvy millennials in particular, have been at the centre of all the growth, development and furor happening around the food delivery space. Knowing this, restaurants and food businesses can not deny the positive influence of online ordering upon their businesses. Had it not been for online ordering through food delivery apps during the isolation and quarantined times of the pandemic, several food businesses would not have seen the light of the day. Now, to this day, food delivery apps have certainly changed the way food businesses marketed, strategized and lured customers their way.

The food deliveries are only going to prosper because online food ordering is just here to stay. How quickly and perseveringly businesses jump on the bandwagon of staying online through these food delivery apps, makes it worth contemplating as to how long will the online food deliveries last.

As of today, it appears that restaurants and culinary businesses that decide to come online and appear widely, would make one prudent decision towards being called the 'progressive businesses of modern day.'