Restaurant Design Combating Home Delivery Services

Restaurants Facing Rising Competition from Home Delivery Services

 
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Hotel & Hospitality Renovation Insights
Cassandra Soto
Brand & Marketing Strategist

November 26, 2019

The first restaurant in the US opened its doors for business in the 1830s, around half a century after independence. Yet, the concept of ‘eating out’ took a long time to pick up steam. Until the middle of the 20th century, the idea of dining meant eating at home. At best, you could go for a meal at someone else’s home, or have a picnic. That trend has changed over the past six decades. As of 2016, the percentage of meals consumed at home fell below 60%, having been close to 80% in 1959. Despite those statistics, restaurateurs today are complaining about falling revenues.

The main issue they are facing is rising competition from home delivery services. Modern consumers are perfectly comfortable with using an app to order food from a restaurant. A rider hired by the app will pick up your order and deliver to your doorstep. What could be more convenient! In 2018, people ate 80% of dinners at home, as the number of visits to restaurants fell to its lowest point in almost 30 years. Millennials and other consumers are eating at restaurants 15% to 20% less than they did a decade ago.

Naturally, the reduced foot traffic caused a drop in revenue for restaurants. Now a growing number of restaurants are trying creative ways to overcome this challenge. In fact, some leading food chains are setting up spaces for the express purpose of catering to takeaway and delivery orders. Don’t feel surprised if you come across an outlet for a place you love and find no dining space. Since people are not inclined to visit the restaurant and instead want to eat at home, restaurants can cut their costs to regain a foothold in the market.

Based on that trend, the key change in restaurant design moving forward involves expanding the kitchen space because the customer may no longer be sitting out in the dining area while the team prepares the meal. Moreover, restaurants witnessing an uptick in the number of orders they receive via food delivery platforms need to cater to these orders quickly, without compromising on the serving time for in-house patrons. Therefore, expanding their kitchen space makes perfect sense.

The last thing a patron wants to see is the chef preparing someone else’s order while they wait in line. Restaurants are working actively to overcome this issue and instead, cater to every customer without causing any disruption to their existing model. Some restaurants have concerns about ceding ground to food delivery apps, who charge the restaurant a percentage of the order amount for their services. Yet, in a classic example of “if you can’t beat them, join them,” a majority of restaurants are embracing the trend.

Innovation is crucial for the success of any business and this holds true for restaurants in the age of home delivery services. Changing the restaurant design to cater to patrons and customers placing orders online can prove the key to success in the long run.

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Contact:

Cassandra Soto
Brand & Marketing Strategist
240-815-5300
CassandraS@TripleCrownConstruction.com

About Triple Crown Construction:

Founded in 1991, Triple Crown Construction built a reputation for itself as a reliable partner in the hospitality and commercial construction industry by understanding and delivering on its partners’ expectations. Based in Frederick, Maryland, Triple Crown Construction strives to approach each and every project with the goal to deliver quality, service, and value, and is committed to raising the standard of excellence in all areas of its work. The company operates with a family mentality, a commitment to the greater community, and a desire to work with those who aim to improve their customers’ experience.

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