Millennials hunger for home-delivery shifts £1bn away from restaurant sector

Chris Losh

Chris Losh

30 November 2018

You know all that time and effort spent getting the décor, ambience and service right in your restaurant? Well you could be wasting your time. Because thanks to the growing trend for home-delivery food more and more diners would rather eat your food in the comfort of their own home.

A new survey by Planday estimates that 20% of millennials are now using home-delivery services – a shift in spend of around £1bn a year. This compares to only 9% of Generation Xers doing the same thing.

‘It is going to become more and more common in our industry,’ said Olivier Gasselin from Hakkasan. ‘It has started to affect us already. More parties are asking for home special catering. You say "no", you lose loyal customers. You say "yes", you keep them. Like it or not, I think it will become more widespread in the future.’

Certainly, there are no signs that the home-delivery trend might be a passing fad, with Uber recently in talks to buy Deliveroo. The latter has an estimated 15,000 riders in the UK alone, and buying it (and presumably merging it with Uber-Eats) would give Uber’s food-delivery service a huge leg up in Europe. Although this week the cab firm baulked at Deliveroo’s $4bn asking price, offering around half that.

‘Deliveroo has been very creative,’ said Raphael Thierry of Street XO. ‘They’ve just launched a cocktail kit with Bombay Sapphire, and with the super-kitchen they’ve developed, designed for restaurants to cook only for deliveries, it will be interesting to see whether restaurants with more elaborate cuisine will start to use them.’

Other big on-trade trends revealed in the Planday report include, unsurprisingly, a growth in veganism, a strong interest in sustainability and a relaxed attitude to technology.

Not only are a majority of millennials completely happy to use venues where both ordering and paying are fully automated, but over 70% of them would be happy to have their food delivered by a robot, the report claims.

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