QSR consumers willing to pay more for delivery than in-store
This month, we look at the rise of home delivery in Australia.
For years, Asia, Africa and the Middle East have have been a good location for big chains like McDonald's to have a successful home delivery service. Australia is now catching up, as illustrated by McDonald's and Red Rooster's successful delivery trials. Is this something quick service restaurants should be tapping into more?
According to NPD Group, although home delivery is still the least common option for quick service restaurant (QSR) consumers, they are most likely willing to pay more for their meals through delivery than any other ordering method and visit in larger groups.
Average eater cheque for in-store visits is only $7.93 while delivery visits is at $9.51.
The report notes that home delivery in the QSR industry is now worth $1.5 billion, with one in every ten QSR consumers choosing delivery as their ordering method.
Representing the bulk of delivery consumption is still the pizza category, however, NPD Group noted that compared to four years ago, other fast food categories are now starting to increase their efforts and share of home delivery. This is illustrated by the successful home delivery trials of McDonald's and Red Rooster.
IN AND OUT
Families are pulling out of the QSR industry this year but continue to patronize home delivery.
QSR in-store visits from families are at -2% but their home delivery consumption is up to 6%. In addition, 51% of all home deliveries are from families.