Skift Take
As they race to dominate in the market, third party delivery companies are targeting large, suburban markets to fuel expansion. National chain partnerships boosted these efforts in 2018 and will continue to drive growth in 2019.
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We've just released our annual industry trends forecast, Skift Restaurant Megatrends 2019. You can read about each of the trends on Skift Table as well as download a copy of our magazine here.
It's a work-night-Wednesday in Weehawken, New Jersey, and the hottest spot for dinner has nothing to do with white tablecloths or advance reservations. It's a walk in, sticky-fingers barbeque joint called House of 'Que, which has just fêted its grand opening and is already delivering take-out via Uber Eats.
This place is so new, Dave the bartender didn't know which delivery service his restaurant is using — but his customers do. "I order this from Uber Eats when I don't feel like leaving the apartment," says Paul, the patron next to me, as he tucks into a thick slab of smoked beef brisket. He likes the convenience and comfort of delivery, and he's not alone. In the past six months, Uber Eats delivery orders in New York City's suburbs, including New Jersey, have increased by over 50 percent.
The trend is happening on a national scale. Right now in the U.S., 63 percent of all restaurant traffic is off-premises (which includes both delivery and drive-thru sales). "It is perhaps the most important growth trend in restaurant sales," says Hudson Riehle, Senior Vice President of Research, for the National Restaurant Association. And according to Morgan Stanley estimates, food delivery will consume 40 percent of total restaurant sales, or $220 billion, by 2020.
It isn't just eaters that are driving growth. Restaurants are increasingly signing up to pay third party operators, because they can use these platforms to build an addit
