Time-crunched consumers use restaurant aggregators, but other brands are promising similar convenience without the cost.
By the Numbers
Research from PYMNTS’ new, exclusive report “Connected Dining: Third-Party Restaurant Aggregators Keep the Young and Affluent Engaged,” which drew from a survey of nearly 2,300 United States consumers conducted in March, found that 74% of consumers reported using aggregators when they do not have time to prepare food for themselves.
Perhaps unsurprisingly, 80% of those who have been using aggregators more in the last year reported that they do so. More notably, however, 60% of those who have been cutting back on aggregator use did the same.
The Data in Action
Noting this demand for convenient meal solutions, many brands have been looking to step in with quick, easy options, gaining share from aggregators by promising lower prices.
For instance, grocery giant Kroger said on an earnings call with analysts last month that, as consumers’ price concerns impact their spending, the company has benefitted from their shift toward lower-priced restaurant alternatives such as the ready-to-eat options that the grocer’s Home Chef subsidiary offers.
“Our customers are looking for more ways to stretch their budget,” CEO Rodney McMullen said, noting Home Chef’s “ready-to-eat restaurant-quality meals.” “The gap between food at home and food away from home spending grew in the fourth quarter as more customers gravitated toward affordable meal solutions that restaurants simply can’t provide.”
Similarly, Berlin-based multinational meal kit company HelloFresh said on its earnings call around the same time that it is seeing non-meal-kit categories lead growth, with consumers increasingly seeking options that fit into their busy workdays.
“From an order perspective, we expect Ready-to-Eat to be the biggest source of order growth in 2023,” HelloFresh Chief Financial Officer Christian Gartner said, adding that the company will be opening new facilities and expanding capacity.