Delivery should be a consideration for every restaurant, no matter how big or small. This doesn’t mean to say that every restaurant should be doing delivery (for some, it just doesn’t make sense), but it is one of the most significant forces to shape the industry in the last decade and will continue to do so.
Here are a few more insights related to the delivery market.What You Can Learn from CEOs Who Made Bold Bets on Technology
Domino's, Panera, and Amazon are racking up the headlines — and convenience and delivery are key themes for each of the companies. More about how their forward-looking bets and strategies are paying off here.
The delivery market will grow at a pace almost four times as fast as the foodservice industry itself through 2022. More on how online food delivery is changing foodservice around the globe here.
Billions of dollars have been funneled into restaurant delivery technologies in recent years — on par with the total value earned by all restaurant IPOs in the last 16 years. More on the biggest players in the space here.
Pizzerias are strongly represented in delivery-only/takeaway restaurant chains, accounting for 85% of sales out of the top 30 chains in the world. (Japanese bento and sushi chains make up most of the rest of the group.)
Construction and start-up costs for casual-dining chains like Texas Roadhouse, Chili’s, and Applebee’s run between $2.3m and $3.4m (excluding land). In contrast, Pizza Hut, Little Caesars, Domino’s, and Papa John’s, which are designed as delivery and takeout locations, cost about 14% as much (comparing medians).
Delivery and takeout platforms tend to have higher valuations than restaurants. Based on EV/Sales, Netherlands-based Takeaway(.com) has a valuation of 12.7x, more than 6x that of top-quartile, publicly traded restaurants in the U.S. Similarly, Delivery Hero, Deliveroo, Just Eat, and Grubhub, all reach valuations of at least 9.0x.
Among publicly traded companies, revenue growth for European food delivery services is considerably faster than for restaurants. Consensus estimates for 2019 expect growth to reach 28%–42% for Just Eat, Takeaway, and Delivery Hero — at least 4.5x as fast as the median for restaurants.
Food delivery aggregators have highlighted the potential success — and value — of new technologies that modernize the foodservice industry. Grubhub’s enterprise value has increased by 170% between 2014 and 2018, more than three times the increase experienced by the seven largest publicly traded foodservice companies in the U.S.
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