With the advent, as it were, of new eCommerce marketplaces and technologies, America’s independent restaurants can reach more customers than ever this gifting season. But with that opportunity comes more competition than ever, as makers of the best chocolate-chip cookies in town, for example, find themselves competing with the best of the best nationwide.
In early November, in advance of the holiday season, restaurant aggregator and delivery service DoorDash announced the launch of its Nationwide Shipping option, allowing consumers to send items from local merchants anywhere in the country.
At launch, the company advertised the ability to send items from iconic New York City restaurants such as Carbone Fine Food and Katz’s Delicatessen as well as several other destination restaurants across U.S. cities. The service imitates the business model pioneered by artisanal food marketplace Goldbelly, which does just the same, shipping items from local restaurants and other food sellers anywhere in the country.
Read more: DoorDash Aims to Edge Out Goldbelly With ‘Nationwide Shipping’ Launch
A Double-Edged Steak Knife
On the one hand, these services present an opportunity for well-established independent restaurants to increase their sales during the holiday season. As long as their food can travel in an insulated package, they can sell it to customers well outside their typical range.
However, for restaurants that might have the appeal to attract holiday shoppers in their neighborhood but not the kind of national recognition that would allow them to succeed on these marketplaces, these services could pose a challenge in the future if more consumers adopt the channel.
Moreover, by allowing restaurants to derive more value from national recognition, these services call upon restaurants to broaden their audiences. Be it through marketing or through rethinking menus to direct attention to one or two items they hope to elevate to iconic status, success on these marketplaces could bring in vital revenue for businesses operating in an industry with notoriously narrow margins.
The proof of concept is there, given the widespread availability of food- and beverage-based giftable subscription services. Consumers want options for great-tasting, unusual culinary gifts that they can send to people living in all parts of the country.
In fact, Goldbelly already offers subscriptions, although these are Goldbelly-branded and feature a mix of vendors. (Restaurants don’t even have control over the profits generated by this offering.) By creating compelling, giftable, shippable items, restaurants have the opportunity to capture some of the holiday spending that may have otherwise gone to these subscription services.
The online marketplace is growing more important than ever for businesses this holiday season, according to research from PYMNTS’ 2021 Holiday Shopping Outlook, created in collaboration with Kount. The study found that 87% of U.S. consumers plan to make at least some of their holiday purchases online this year, up 13% from 2020.
Get the study: Nearly 90% of US Consumers Plan Online Holiday Purchases in 2021 — 13% More Than in 2020
The good news for restaurants offering premium items on national marketplaces is that high-income consumers are the most likely to make holiday purchases online, with 91% of those making more than $100,000 a year intending to do so, compared with 82% of those making less than $50,000.
Additionally, those shopping only online are more likely to spend more money on gifts this year than last. If they can woo these high-income big spenders across the country, independent restaurants can receive a much-needed holiday boost.
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