FROM APPETIZERS TO APPS: The Rise of Tech in the Food Sector is Here to Stay An Ipsos Point of View
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FROM APPETIZERS TO APPS: The Rise of Tech in the Food Sector is Here to Stay An Ipsos Point of View
FROM APPETIZERS Tech-led business models are here to stay for
the restaurant industry. During the pandemic,
TO APPS: the need to eat and our desire to dine out was
The Rise of Tech in the a constant, but in most cases, local level
Food Sector is Here to Stay restrictions prevented us from dining in-person
entirely. Restaurants that weren’t already
digitally orientated had to adapt quickly.
Ordering food from our mobile phone has now
become an integral part of our life, making
it as important to the restaurants’ financial
models as tasty dishes.
The need to react with agility is critical.
However, the solution is not one-size-fits-all;
what works for one company may not work
for another. Brands need to shape their apps
around the unique needs of their consumer
base, but they also need to consider the
business model itself.
Ipsos data shows that 40% of Americans
are ordering food using a third-party delivery
app, such as Uber Eats, DoorDash and GrubHub.
Of those using these apps, nearly 4 out of 10
claim they are using them more now than
they did last year. Consumers are turning to
these apps for a wide variety of reasons,
but the top reason is one of comradery —
to support restaurants they have ordered from
before (32%). Some people are even using
them to try out new places (25%) and others
are using them purely out of necessity, with
21% saying this is the only way they can get
food delivered to their area.
2 IPSOS | FROM APPETIZERS TO APPS: THE RISE OF TECH IN THE FOOD SECTOR IS HERE TO STAY
Based on Ipsos’ 35+ years of experience evaluating tech-led • Platform to Consumer Model: Uses third-party apps, such
innovation, we know the first step is having a clear single-minded as Uber Eats and DoorDash, which list the available restaurants
goal; having multiple goals will not lead to success. And there that are geographically close to your location. You place an
are many business models that can be leveraged to reach that order through a website or a mobile app, and shortly thereafter,
goal. For the restaurant industry, they range from being a platform your food arrives at your doorstep.
that partners with restaurants and drivers (Platform to Consumer
• Full-Stack Model: Everything is done in-house. This includes
Model) to a fully integrated model where everything is kept
not only building the app or hiring drivers, but also cooking
in-house (Full-Stack Model). Confirming which model is financially
the food. With this model, the food is often prepared in ghost or
and operationally feasible is the first step:
cloud kitchens. You can’t dine in these locations; the primary
purpose is to prepare food that is delivered to your doorstep.
Kludio, for example, is a digital food court in Dhaka.
Frequency of Ordering Using Third-Party Delivery Companies
Restaurant takeout or delivery using 3rd party delivery
companies (e.g., Uber Eats, DoorDash, GrubHub) More or Less than a Year Ago
12%
22%
38%
42%
27%
40%
19%
Often Sometimes Rarely Never More About the same Less
© Ipsos | Q. How frequently, if at all, do you do the following right now? © Ipsos | Are you doing the following more or less now, compared to this time last year?
—Ordering restaurant takeout or delivery using 3rd party delivery companies
(e.g., Uber Eats, Door Dash, GrubHub
FROM APPETIZERS TO APPS: THE RISE OF TECH IN THE FOOD SECTOR IS HERE TO STAY | IPSOS 3Once the business model is determined, ensuring your digital • Emotional resonance is important as well. Every interaction we
innovation connects with consumers on a cognitive and emotional have with a service evokes an emotional response. However,
level becomes critical to success. these are not immediately intuitive because the emotions
associated with services are not big ones. They are much more
• A cognitive connection stems from the ability of your innovation
subtle. Using Uber Eats as an example, grabbing your favorite
to fulfill a need or a desire; in other words, the utility of the
meal from your favorite restaurant gives you a sense of normalcy.
innovation. In most cases, users logically assess this before
they actually experience the innovation. For example, Uber Eats
is a convenient way to get your food delivered.
Reasons for Using…
3rd party delivery companies (e.g., Uber Eats, DoorDash, GrubHub)
I use these services to support restaurants I’ve ordered from before 32%
I use these services to have a variety of choices of restaurants/cuisines 30%
I use these services because it is more convenient than ordering from a restaurant directly 28%
I use these services to try out new places to eat 25%
I use these services because it is the only way I can get delivery in my area 21%
I use these services to try new dishes at restaurants I’ve ordered from before 18%
None of these 19%
© Ipsos | Q. Which of the following statements apply to your use of 3rd party food delivery companies?
4 IPSOS | FROM APPETIZERS TO APPS: THE RISE OF TECH IN THE FOOD SECTOR IS HERE TO STAYAs restaurants went digital during the pandemic, they made
Contact
concentrated efforts to reassure us that it was still safe to eat
out, leaning into low-touch curbside pickup and partnering with Alyson Heffernan
third-party partners to offer contactless delivery (Uber Eats, Senior Vice President, Innovation
GrubHub and DoorDash). Outside of these obvious reassurances, Alyson.Heffernan@ipsos.com
they also employed push notifications to either maintain aware-
ness or to push offers to drive user conversion (Seamless). Some
About Ipsos
even offered deals (DoorDash), linked to reward programs (Jersey At Ipsos we are passionately curious about people, markets,
Mikes), offered pick-up through the drive-thru (McDonald’s) and brands, and society. We deliver information and analysis that
even began making food recommendations based on your previous makes our complex world easier and faster to navigate and
orders (Starbucks). These added features create differentiation. inspires our clients to make smarter decisions. With a strong
presence in 90 countries, Ipsos employs more than 18,000
Having great food, while obviously important, still won’t be enough
people and conducts research programs in more than 100
to guarantee success even after the pandemic passes. Ordering
countries. Founded in France in 1975, Ipsos is controlled and
food on our mobile devices is likely here to stay, and ensuring
managed by research professionals.
customers have a great tech experience will be critical for players
in the food industry to thrive. Restaurants will need to constantly
evolve the user experience post-pandemic to ensure they are
offering the right services in a way that is as frictionless as
possible for their customers. But remember, the tech is just a
means to a (hopefully delicious) end. Most people don’t want
technology for the sake of technology. They want solutions that
make their lives easier, and tastier.
Cover photo by Mak on Unsplash
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