Anyone who runs a restaurant franchise knows that maximising orders is crucial. If there was a way to spread orders throughout the day, rather than having to turn business away at busy periods – wouldn’t you want to take advantage?
The UK online food delivery market is worth over £8.5 billion. With an average spend of £5 per person, per week – it’s a market that offers plenty of growth opportunities. One of the biggest recent trends is the rise of lunch and late-night food delivery.
In 2007, the US chain Taco Bell launched a massive advertising campaign where they coined the term “fourth meal”. Aimed at youngsters, the fast-food brand wanted to grab the lucrative post-dinner market. Whilst the campaign has long-since finished, the concept of the “fourth meal” is here to stay.
In 2021, more and more diners are squeezing an extra meal into their day – and this isn’t just late-night munchies. Time-hungry workers, hard-pressed parents and busy students are all adapting eating schedules.
Online food delivery has shifted from traditional family meals to a more flexible eating style. This incorporates multiple small meals, often eaten on-the-go or alone.
Whilst the Covid-19 pandemic accelerated online delivery trends, Millennial and Gen-Z diners expect on-demand services. Research revealed that 60% of 18-24 year olds increased their use of food delivery services in 2020, and a further 26% planned to increase this in future.
“Lunchtime” now starts at 11am (or earlier!) and dinner starts at 5pm – continuing late into the night. In particular, “night owl dining” has accounted for over 80% of UK out-of-home dining’s growth in recent years. People also order much earlier in the week, as delivery is no longer seen as just a Friday-night treat.
Restaurant franchises are increasingly responding to demand for healthier items. Indeed, Deliveroo saw sales of healthy products go up by 282% over 2020.
Lunchtime diners favour cheaper options that can be eaten at desks. Orders of sandwich-style wraps (for instance) increased by over 20% compared with the previous year. Pizza and burger orders also rose by around 10%, demonstrating the rise of comforting, simple and cost-effective options.
Many modern workers head to the gym after work, meaning health-conscious post-workout fuel is a large growth area. Indeed, a healthy-eating bistro Eat Clean Cuisine has said their busiest trading times always fall in the late-evening category. With long working hours showing no sign of slowing – it’s a significant opportunity for food franchise owners.
With increased demand for healthy and comforting options at all hours of the day – your virtual kitchen brand can fill a crucial market need.
Lunch and late-night food doesn’t always have to be a large meal, so focusing on things such as wraps and snacks is a particularly lucrative area. Whilst adapting your ghost kitchen for lunch and late-night delivery undoubtedly involves extra time, money and staffing – the benefits in terms of increased orders, spread more evenly throughout the day are too large to ignore.
For more food franchise advice and industry news, take a look at the Peckwater brands blog. Whether it's understanding consumer habits, improving your efficiency or encouraging repeat custom – get the information and inspiration you need to grow your food delivery business, fast.