Technology Is Increasing The Appetite Of Hungry Aussie Consumers

Technology increasing the appetite of hungry Aussie consumers

Innovation and the use of technology in the ordering, delivery and payment processes has continued to drive growth in the 100% home delivery/takeaway food sector, which saw an increase of 4% in foodservice value sales in 2017. The amount of transactions within this industry has also increased by 1%, thus demonstrating the positive impact of technologies disruptions of the home delivery sector.

Technology is the primary growth driver within Australian takeaway

The added convenience offered by food-delivery apps and online ordering platforms will continue to encourage consumers to favour online ordering instead of takeaway orders in-store or over the phone. Australians are cooking less and the increasingly busy lifestyle and high smartphone penetration will continue to fuel consumers’ appetite for online services, including food ordering and delivery. Furthermore, consumers in Australia are spoilt by the simplicity, convenience and reliability offered by the various mobile apps and websites, which helps support growth of 100% home delivery/takeaway.

Competition will increase

Third party online food delivery companies and food aggregators such as UberEats, Deliveroo, Foodora and Menulog will continue to gain traction, as these platforms provide foodservice operators the opportunity to add another channel to sell through by simplifying the logistical process of online ordering and delivery. Online food ordering and delivery companies will continue to attract considerable investment, which will provide the scale to continue to innovate and offer the experience that local consumers demand. Moreover, increasing demand for online ordering will support competition from other foodservice channels as online ordering is no longer perceived as an occasional dinner option from 100% home delivery/takeaway operators. Over the forecast period, Australians will demand for a broader variety of food, thus forcing competitors from other categories including full-service restaurants and fast food operators to respond accordingly.

Digital channels will continue to change the foodservice

Growth of operators through digital channels will continue to impact the physical space of foodservice. More efforts to respond to the growing number of online orders and deliveries are expected. Developments such as additional windows, doors or even new sites that act as distribution points are anticipated to grow in Australia. “Dark kitchens”, where third party online delivery companies built a kitchen for a selected restaurant to operate and create a market where the restaurant did not have access before, are expected to become common within Australia’s foodservice industry. Menu innovation and curation of meals to be exclusively offered for delivery is also anticipated. This will give food operators more control over the food quality since they can create meals with food that can be transported better and it will also give them certain control in terms of price structure and costs as they can curate more premium menus that allow them to get better margins after paying a commission to the delivery companies.