In recent years, restaurant mobile apps and digital ordering have been on the rise. According to The NPD Group’s “Delivering Digital Convenience” report, restaurant digital orders have grown at an annual rate of about 23% from 2013 to 2017 and are expected to continue this growth in the coming years. Also, the report found that a majority of digital orders are now placed through mobile apps at 60%.
Another finding of the report is that 70% of digital orders sourced back to the restaurant brand itself rather than to a third-party app or service. This reveals restaurants have increasingly been moving away from app services like Seamless and DoorDash in favor of developing their own applications in-house or through a mobile app developer.
This shift can partially be explained by the customization a standalone app provides in luring customers with special deals and loyalty programs. For instance, the report found that over half of restaurant visitors participate in a restaurant loyalty program.
Still, third-party delivery apps like GrubHub and UberEats account hold a formidable market share of the 20 most-used apps at 40 percent. Customers cite the abilities look up items, pay for meals and check prices as the primary reason for ordering through third-party apps. Also, these apps provide a cheap option for smaller restaurants and food providers that don’t have the capital to build their own mobile apps.
David Portalatin, NPD’s food industry advisor says, “Digital orders will remain an outsized source of growth for the restaurant industry over the next few years, and operators who desire to grow need to embrace a digital strategy.”
Moreover, this a great time for restaurant brands to capitalize on this industry growth by developing their own mobile apps or looking to third-party alternatives.
To learn more about mobile app development, design, and marketing, make sure to contact our New York City Appetizer Mobile team today!