Skip navigation
dominos Domino's
Domino’s has been a leader in delivery. Are robots the next frontier?

Future of Food: Couch service will be key

The future of food isn’t inside a restaurant — it’s inside your home.

Restaurants and third-party delivery services are racing to get food directly to consumers. They’re delivering this food in many different ways — with contract drivers, employees and even via drone or wheeled robot. 

As it is, only a tiny percentage of restaurant orders are delivered. According to a study in November by the consulting firm McKinsey & Company, only 4 percent of food sold by restaurants is delivered. Most delivery is through traditional channels, notably pizza chains, such as Domino’s.

But many restaurants are betting that delivery will grow. In recent years, investors have pumped money into delivery startups such as Postmates, Grubhub and UberEats.

Numerous restaurant chains are heading in this direction. McDonald’s, which operates its own delivery services in China, plans to roll out delivery through UberEats in the U.S. this year. 

Meanwhile, Panera Bread plans to roll out delivery using its own drivers. 

And casual-dining chains, such as Outback Steakhouse operator Bloomin’ Brands Inc., see delivery as the biggest potential sales driver for the struggling segment.

Some companies are even ditching delivery drivers. Domino’s has tested delivery robots and drones in some international markets. Postmates has also tested robots.

The potential of delivery remains to be seen. Consumers tend to be fickle and may not want to spend the extra money. 

On the other hand, consumers like their food to go. Noah Glass, founder of online ordering company Olo, said that 60 percent of food purchased inside a restaurant is consumed outside the restaurant. 

“Consumers are increasingly turning to restaurants to outsource the kitchen,” Glass said.

Contact Jonathan Maze at [email protected]

Follow him on Twitter: @jonathanmaze

TAGS: Operations
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish