Many mobile app categories saw a boost last year as more consumers spent time with their devices during quarantines. According to our estimates for smartphone app user growth, grocery apps, food delivery apps, and health/fitness apps were the three fastest-growing categories in 2020.
Fast-casual restaurant chain Chipotle Mexican Grill is a pioneer in meme marketing, having incorporated memes into its social media strategies since mid-2018.
Food delivery apps like Uber Eats, DoorDash, and SkipTheDishes—a Winnipeg-based homegrown competitor to the US-based services—had already established a foothold before the pandemic. The greater need for delivery last year elevated their influence in food service, even though the fees they charge have raised concerns in the restaurant industry and for regulators.
Uber Eats doubled its sales last year: In addition to the surge in food delivery during the pandemic, the company's ability to cross-promote with its rides business (with both riders and drivers) helped drive growth.
DoorDash dashes past competitors: Lockdowns only accelerated the rapid growth of digital restaurant marketplaces in 2020. DoorDash was a major winner and will make up more than half the US market this year.
Following increased demand due to the pandemic, digital restaurant marketplace sales are on track to finish the year with $44.94 billion in sales, more than double the $20.08 billion in 2019.
As the restaurant industry faces continued operational challenges and indoor dining constraints loom across the country, many consumers are turning to food delivery apps.
As social distancing practices continue in the US, consumers are increasingly using their credit cards for restaurants and groceries. In Bankrate polling conducted by YouGov, 51% of respondents said they used a credit card for restaurant takeout in April, vs. 30% who said the same in December 2019.
Even with a partial lifting of lockdown measures, the coronavirus continues to limit movement of people—and this has hit the UK high street hard. From retailers with a high dependency on physical stores to restaurants and coffee shops without delivery facilities, the obstacles have proven insurmountable for some. For others, the longer-term question is, "Will the UK high street be able to recover when (and if) normalcy returns?"
Lunch and dinner subscription company MealPal started out as a service through which consumers could pick up meals from local restaurants during the work week—but, like many in the food industry, it has adjusted its operations for quarantined customers. The company now offers groceries supplied by local restaurants via MealPal Market.
With the coronavirus pandemic leading to a significant economic slowdown, we’re providing updated guidance to our clients about what we expect for ad spending during H1 2020.