The millennials, digital natives and food delivery services: The modern era hand in hand trio
Generation Y and Generation Z- Making satisfying contributions to the restaurant and food delivery space.
Introduction
Nothing has invaded our personal lives with such a muted silence as that of the technological gizmos and gadgets. Smartphones and numerous techno savvy devices have surreptitiously creeped in into our lives. One of the most noticeable features of our modern-day society is the fact that nearly everyone seems to be plugged out of life and plugged into some sort of device as they go about their daily commute to work or college, staying at home or while wanting to sleep. It is something that we usually encounter on our own commute into the city, to and fro — millennials and digital natives alike, with their heads down, deeply scrolling through the minutia of the latest post or tweet, or buy one get one offer from your favorite pizza outlet or whatever it is that is capturing their attention so completely. Smartphones have just got human lives to become apparently simpler, yet still too occupied. Isn’t it?
In the light of this, people of Generation Y and Generation Z cohort, readily proficient with the use of smartphones and technological gadgets, and exposed to the screens of these smart devices for prolonged periods of time, have been found to be on an abundant rise. In simple words, the trend of smartphone usage has been most quickly picked up by these generational cohorts. A survey finds out that a major portion of screen time spent by the youth is on food delivery apps. The survey reveals that younger persons are more likely to use food delivery services. 63 percent of people- aged between 18 to 29 years old have used a multi-restaurant delivery website or food delivery app service in the past 90 days. Approximately 51 percent people of the age group 30 to 44 years also use food delivery apps and websites.
Insights about food deliveries, millennials and the digital natives
As we shift through generations, numbers have shown that consumers are prioritizing online food ordering and deliveries over home-cooked meals, lately. Nowadays, it seems as if the millennials and digital natives are significantly influencing the trends in the restaurant and food industry. According to the U.S. Bureau of Labor Statistics, “Consumers aged 18-34 represented 21.9% restaurant spending in 2019, modestly above the 21.6% of the 18+ U.S.”
With this in mind, don’t you, belonging to either Generation Y or Generation Z, ever feel so pampered that you being hungry, realize that you can get your cravings mellowed and hunger pangs satisfied through efficient doorstep delivery solutions offered via a food delivery software or an app, all with a couple of clicks and taps on your phone? Of course, we all do. We like to be pampered that way, too much too often. As a result of this, it is noteworthy to put forth that millennials and Generation Z have been contributing decently to food delivery services and associated figures and statistics.
To put one such statistic in point over here, Generation Y and Generation Z are the main users of the some of the leading third-party food delivery providers- namely DoorDash, Grubhub, Postmates, and Uber Eats, platforms on which all orders are placed digitally. In fact, studies show that up to “54% of customers aged between 18 to 34 years are a monthly active user of at least one of these four food delivery companies.”
If industry observations and statistics are anything to go by, young adults are a lucrative target market for off-premises food sales. Whether they are preparing for a 24*7 binge watch session or are simply not in the mood to dine in their favorite restaurant or go to a newly launched and most talked about food start up nearby, millennials and the digital natives are increasingly turning to food delivery and takeout as a viable meal solution, offered through impeccable food delivery software and apps.
According to a 2018 study by investment bank UBS titled “Is the Kitchen Dead?” food delivery sales could rise 20 percent each year to $365 billion worldwide by the end of the year 2030, up from $35 billion in 2018. Isn’t it a whopping growth figure? It, certainly is. And if you have any element of doubt regarding who is going to contribute to such phenomenal figures, let the air be cleared that- millennials are driving much of the growth, the bank (UBS) notes, as they are three times as likely to order in as their parents. Generation Z is also playing a key role in the growth of delivery.
‘According to NPD Group, in the year ending December 2018, Generation Z customers made 552 million foodservice delivery orders.’
Research from PYMNTS’ study “Super Apps for the Super Connected,” created in collaboration with PayPal and derived from a survey of more than 9,900 consumers across the United States, the United Kingdom, Australia and Germany, found that 70% of millennials in these four countries ordered restaurant meals online, well above the 61% of Generation Zers that said the same.
In a yet another study by ‘The food institute’ titled ‘Which consumers are driving food delivery growth?’ it was revealed that consumers who use food delivery companies like UberEats, GrubHub and DoorDash in today’s times, generally tend to be young and wealthy.
According to this study, it is mentionable that virtual brand company Nextbite’s white paper revealed that 71% of survey respondents who said they ordered delivery weekly were Millennials or Generation Z people, and the most active delivery customers earn an average of $119,000 per year.
The who, how, what and why of food ordering and delivery-
• Food delivery is here to stay; in 2021, 53% of survey respondents - and 64% of millennial respondents - say that food delivery and takeout are “essential to the way they live.”
• Millennials and Generation Z are spending a significant chunk of their paychecks on food delivery or at restaurants. After groceries, dining out is the second-highest monthly spending category for both generations.
• 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 53% of millennial customers - said they would be more likely to order from a restaurant that offered to-go alcoholic beverages.
• Customers don’t always place their mobile orders with a few taps of a finger. About 14% of people have used voice assistants, like Siri and Alexa, to order food delivery while they’re driving.
• Google has integrated food delivery options into Google Maps and Google Search listings for restaurants, making it even easier for consumers to find restaurants that offer mobile ordering and delivery.
• Speed is the name of the game. The average delivery window for food is around 35 minutes, but 27% of people say they would be willing to pay extra for their food to arrive faster.
• As long as customers continue to use food delivery services, ghost kitchens aren’t going to disappear anytime soon. Euromonitor predicts that ghost kitchens will grow to a trillion-dollar industry by 2030.
Wrapping up-
Contemporary consumers, especially the millennials and the digital natives are getting increasingly rapacious, with the desired convenience reaching their doorstep through the use of food delivery software and apps. With them adopting the technological pace of progress quite commendably, the chances are potentially high that the food delivery industry is going to face a massive influx of online food orders by these two generational cohorts in just a short span of time from now.
Businesses, moreover, are also eyeing the target market that has the potential to get enormous, which in the food delivery space, appears to be in the Generation Y and Generation Z cohort. And with the millennials leading the way in digital restaurant and food ordering, the stage appears to be all set for businesses to make big gains.
All in all, the food delivery industry appears to be taking a poised flight with continued contributions pouring in by the millennial and digital native generation. They have the steering in hand; and they are going ceaselessly quick. Just that how soon they see the food delivery industry to the right destination in terms of reaching whopping sales figures and thumping revenue patterns remains to seen.
About the Creator
Dr. Shamael Zaheer Khan
Dr. S.Z. Khan is a revered academic. He brings a unique blend of theory and practice to his position as Vice President (Marketing & Strategy) at a leading SaaS firm. He is also an expert contributor to several platforms of repute.
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