Is offering a delivery option for your pub an opportunity or a threat?
The rise of the delivery has been off the chart with a 13% growth just last year to a value of £8.1bn – however the number of pubs offering this service is next to none. Just 1/5 of the major pub chains use food delivery as part of their business model compared to 2/3 of the top restaurant chains.
Not only are the numbers of people using food delivery rising but so is the average price of their order. There are now 32 million food delivery users (an increase of 9%) and their average spend has increased to £9.50 per order, with 80% of these for evening meals.
18-34 year olds are responsible for half of this spend with 1/3 saying they are more likely to order a delivery than go out for a meal. This demographic is also ordering food in for social occasions instead of going out with just over half of delivery orders for treats or special occasions.
Although the option of delivery looks like a great option for all food outlets there are some warning words from experts.
Firstly, not all food options are suitable for delivery. One of the most traditional pub classics is of course a Sunday Roast – this is not a dish that travels well. There is also the problem of space and facilities when it comes to running a delivery and a normal service. Most pubs don’t have the kitchen space, nor the bodies needed, to successfully run both which means the quality of the experience on both sides will be affected.
Therefore, we would recommend for pubs to focus on luring people into the pub for their food rather than suddenly changing their business model. Think about other options that could be available including entertainment, offers and exceptional customer service to make them understand the value of the pub experience.