Restaurant delivery | KRG Hospitality

December 23, 2022by David Klemt David Klemt No Comments

Canada’s Top 2022 DoorDash Orders

Canada’s Top 2022 DoorDash Orders

by David Klemt

Operators curious about the most popular delivery items in 2022 will be happy to learn that DoorDash’s year-end report is ready for viewing.

Those who want to compare it to predictions from several sources earlier this year can click here. The DoorDash Canada report can also be compared to consumer trends in Canada revealed back in October.

Before we jump in, I’m not detailing the DoorDash report in its entirety here. To review the entire report, please click here.

Instead, I’ll be sharing the top takeaways in terms of top menu items; top cuisines; and top items by province.

Speaking of provinces, a word to New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Prince Edward Island, and the Yukon. Please don’t break out the pitchforks and come for me for not including you in this article. DoorDash’s report only covers data from six provinces—I didn’t leave you out intentionally.

Top DoorDash Cuisines in Canada

American
Mexican
Japanese
Thai
Mediterranean
Indian
Chinese
Italian
Korean
Filipino

Top DoorDash Items in Canada

Burgers & Fries
Fried Chicken
Poutine
Sushi Rolls
Chicken Wings
Burritos
Chicken Rice Bowl
Shawarma Wraps
Curry
Pad Thai

I think there’s one key takeaway that stands out in regards to this list. Notably, it appears that while chicken isn’t number one, it’s undeniably popular amongst Canadian DoorDash users.

In fact, according to DoorDash data, chicken reigns supreme in British Columbia. When you reach the province-specific sections below, you’ll see how powerful the cravings in BC are for chicken.

Top DoorDash Late-night Items

Again, chicken rules the DoorDash roost in this category.

Chicken Nuggets
Fries
Poutine
Chicken Wings
Chicken Burgers
Apple Pie
Cheeseburger
Spinach & Cheese Dip
Chocolate Fudge Sundae
Crispy Chicken

Top DoorDash Items: British Columbia

Burrito Bowl
Szechuan Chicken Lettuce Wraps
Butter Chicken
California Roll
Crispy Chicken Sandwich
Tofu Bowl
Chocolate Chip Cookies

Top DoorDash Items: Ontario

Cheeseburger
Coffee
Burrito Bowls
Chicken Shawarma
Crispy Chicken
Bagels
Pad Thai
Beef Patty
Pizza
Onion Rings

Top DoorDash Items:Alberta

Spinach and Cheese Dip
Chicken Cheddar Sandwich
Chilli Chicken
Kale Salad
Margarita Pizza
Hot Apple Turnover

Top DoorDash Items: Québec

Poutine
Cappuccino
Pad Thai
Steak and Cheese
Croissant
Dumplings
Chips
Tacos

Top DoorDash Items: Saskatchewan

Interestingly, a beverage item holds the top spot in Saskatchewan.

Bubble Tea
Pepperoni Pizza
Pork Bun
Crispy Pork
Garlic Bread
Pasta

Top DoorDash Items: Manitoba

Fries
Butter Chicken
Red Velvet Cake
Poke Bowl
Shawarma Wrap

As I stated in Wednesday’s article detailing Grubhub and Uber Eats’ reports for the US, we believe operators should take as much control over their restaurants and bars as possible. At KRG Hospitality, that means implementing direct delivery if it makes sense: ease of use, delivery capabilities, favorable costs, etc.

It’s also helpful to know what consumers in your area are craving and ordering. Such information can provide a useful baseline for many concepts’ menu development.

Image: John Fornander on Unsplash

Delivery worker on bicycle on city street

November 28, 2022by David Klemt David Klemt No Comments

$28.82 per Hour for NYC Delivery Workers?

$28.82 per Hour for NYC Delivery Workers?

by David Klemt

In response to the New York City Council’s proposal of $23.82 per hour for delivery workers, some “deliveristas” are asking for more.

Now, before we proceed, no, this isn’t a re-run of an article from last week. This isn’t a case of déjà vu—it’s the evolution of a news story that’s developing rapidly.

So, how much more do delivery workers in NYC want? Well, they’re after a significant bump over the council’s minimum hourly wage proposal.

Requesting that the NYC Council more accurately account for deliverista expenses, some delivery workers are asking for $28.82 per hour.

Early last week, a group consisting of Los Deliveristas Unidos and the Worker’s Justice Project members came together. They gathered at New York City Hall to make their stance on the NYC Council’s minimum wage proposal.

As the deliveristas see it, an increase from $23.82 to $28.82 more accurately reflects their operating expenses. The argument is compelling when one considers costs beyond fuel.

Asking for More

After all, not every delivery worker in NYC (and other markets) uses a car, truck or SUV to make deliveries. That should explain the use of the term “delivery worker,” not “delivery driver.” Some deliveristas ride motorcycles, mopeds, or bicycles. I’m willing to bet some even use scooters, rollerblades, or skateboards.

Using any mode of transportation as a delivery worker comes with requirements, both legal and practical. For example, deliveristas must maintain insurance, maintain their transportation, and purchase and maintain safety equipment.

And yes, that safety equipment is crucial. According to some reports, around a third of NYC those who deliver on two wheels have been injured on the job. Tragically, 33 delivery workers have been killed since 2020. In fact, NYC says delivery workers have the highest injury rate.

Another interesting development may seem semantic. However, when one takes time to truly consider the point it’s rather poignant.

In asking for the proposal of $23.82 to rise by $5 by 2025, are asking for a living wage. Not minimum wage, as the proposal frames the hike, but a living wage.

One worker, Antonio Solís, as quoted by The City, a non-profit NYC news publication, explained: “We are asking the city to make a $5 adjustment, to go that extra mile to ensure we get to a living wage.”

A Request, not a Rejection

It’s also important to note that NYC’s delivery workers aren’t rejecting the council’s minimum wage proposal. Rather, the request is that the council considers updating their proposal ahead of a December 16 public hearing on the matter.

So far, companies like DoorDash, Grubhub, and Uber Eats haven’t released much in the way of statements. However, there have been reports quoting a handful of representatives. In pushing back against the proposal, they’ve mentioned increased costs; reduced deliveries; and the possibility of “locking out” deliveristas if delivery demand is low at a given time.

Should legislation go into effect after the public hearing, it’s likely we’ll see lawsuits from the delivery companies.

Image: Patrick Connor Klopf on Unsplash

November 22, 2022by David Klemt David Klemt No Comments

$23.82 Minimum Wage for Delivery Workers?

$23.82 Minimum Wage for Delivery Workers in NYC?

by David Klemt

With a public hearing on the docket for December 16, the New York City Council is proposing “fairer pay for delivery workers.”

The move is a year in the making. Last year, the NYC Council approved legislation with the goal of improving delivery worker pay and working conditions.

Now, the council is moving to increase minimum wage for the 60,000-plus delivery workers in the city.

At the risk of coming across as pessimistic, the legislation is likely to be unpopular with third-party delivery services. After all, when NYC and San Francisco passed laws to cap third-party delivery commissions, the big services filed lawsuits.

So, again, increasing the minimum wage for delivery workers in NYC will probably not go down well with companies like Uber, DoorDash, and Grubhub.

It’s possible we’ll find out before the end of this year. After the public hearing, the NYC Council will consider public comments. Then, the council could move forward and enact the legislation.

What’s in the Proposal?

Should the rule go into effect after the public hearing on December 16, minimum wage would rise to $17.87 per hour for third-party delivery workers. By April 1, 2025, that rate would increase to $23.82.

“This new proposed minimum pay rate would help ensure a fairer pay for delivery workers for third-party apps, providing more stability for 60,000 workers across our city,” says New York City Mayor Eric Adams.

According to reports, Brooklyn Borough President Antonio Reynoso is in favor of the legislation as well.

“It’s absolutely unacceptable that the restaurant delivery workers who provide for so many in this city are not justly compensated for their time, reimbursed for their expenses or provided essential benefits,” says Reynoso.

So, how did the council arrive at the $23.82 per hour figure? Well, we actually have that information:

$19.86, which matches standards set by the New York City Taxi and Limousine Commission for ride-hail drivers;
$2.26 for expenses delivery workers incur; and
$1.70 for worker’s compensation.

Why Legislate Delivery Worker Pay?

It appears the main reason is an incredibly simple one. In short, third-party delivery workers aren’t making minimum wage in NYC.

Per the Department of Consumer and Worker Protection (DCWP), delivery workers average less than the city’s $15 minimum wage. With tips, they’re averaging $14.18. And without tips? As one can imagine, the hourly rate plummets: $7.09 per hour.

According to the DCWP, the average hourly expense a delivery worker incurs is $3.06. So, that drives their hourly pay to $11.12 with tips, $4.03 without.

In an argument likely to be cited in any lawsuit filed by DoorDash (or at least shared in a public statement), the company claims its delivery workers make almost $29 per hour.

Clearly, there’s a discrepancy somewhere. Either delivery drivers are woefully underpaid for the service they provide or multiple researchers are misinterpreting hourly pay data.

Several sources have cited a statement made by a DoorDash representative about the NYC Council’s proposal:

“Dashing allows so many across New York City to earn when, where and how often they choose,” says the rep. “Unfortunately, the proposed rule does not appropriately account for this flexibility or that Dashers are able to choose which deliveries they accept or reject.”

Their statement continues, addressing a possible rise in costs and drop in orders:

“Failing to address this could significantly increase the costs of delivery, reducing orders for local businesses and harming the very delivery workers it intends to support.”

Why Should I Care if I Don’t Operate in New York City?

We’ll see—quickly, apparently—if this proposal becomes law. Should that happen, there’s reason to assume similar proposals will pop up in other cities and states.

We’ll also see whether or not third-party delivery companies file lawsuits in response. They’ve done so for commission caps, after all.

At any rate, this is one to watch. Similar legislation could be coming to your market.

Image: Nik Shuliahin 💛💙 on Unsplash

October 12, 2022by David Klemt David Klemt No Comments

The Numbers on Food Delivery in Canada

The Numbers on Food Delivery in Canada

by David Klemt

For most restaurants, delivery is now a crucial service element rather than a “nice-to-have” option a small percentage of guests expect.

This is true whether your restaurant is in the US or Canada. But who’s placing orders? How are they ordering? And will they continue to order for the foreseeable future?

Well, Restaurants Canada has answers to all those questions and more. So, we let’s take a look at what their 2022 Foodservice Facts report says about delivery.

To download your own copy of this informative report, click here.

Who’s Placing Orders?

In their 2022 Foodservice Facts report, Restaurants Canada looks at three age groups:

18 to 34
35 to 54
55-plus

Perhaps unsurprisingly, the 18- to 34-year-old cohort leads the charge when it comes to ordering delivery. It’s also not surprising that 35 to 54 comes in second, and 55 and older is third.

However, the first two groups are closer than some may assume. Eighty-three percent of the the 18 to 34 cohort placed orders at quick-service or full-service restaurants between December 2021 and May 2022.

That number does drop for the same time period among the 35 to 54 group, but not by a significant amount. Of that cohort, 77 percent ordered delivery. Just over half of the 55-plus group placed delivery orders: 52 percent.

Now, those numbers are down a bit from 2021, which makes sense. Things were much more restrictive in 2021 and people were just getting back to a sense of normalcy at the start of this year.

In 2021, the delivery order percentages were:

18 to 34: 89 percent
35 to 54: 81 percent
55-plus: 67 percent

Looking at these numbers, it appears the 55-plus cohort is more comfortable dining out in person. Conversely, the 18 to 34 age group is clearly comfortable making delivery a part of their everyday lives.

How do People Want to Order?

Believe it or not, your website still matters. I’ve been saying this for years but the pervasiveness of delivery and takeout ordering is really driving this point home.

The fact is, a notable percentage of your guests want to support your restaurant and staff directly. Over the past couple of years, consumers have become well aware that third-party delivery services are incredibly costly for operators.

Consumers are also aware of third-party delivery debacles, such as the abysmal Grubhub “Free Lunch” mess from May of this year.

So, direct delivery is something that operators need to at least consider. Implementation is often less difficult than most business owners believe. And many platforms, SevenRooms, for example, make implementing direct delivery simple and affordable.

Interestingly, Restaurants Canada data supports the need for direct delivery. Back in May, the industry advocacy organization asked survey respondents how they prefer to place delivery orders from restaurants.

Preferences for QSR customers:

No preference: 10 percent
Over the phone: 19 percent
Third party: 35 percent
Restaurant website or app: 36 percent

Full-service customer preferences:

No preference: 8 percent
Over the phone: 28 percent
Third party: 29 percent
Restaurant website or app: 35 percent

Honestly, I find it surprising anyone calls a QSR to place an order. However, I suppose that makes sense for an office or catering.

At any rate, make sure your website is up-to-date, you offer direct or “last-mile” delivery, and make it easy to navigate your menu and the ordering process.

Is Ordering Here to Stay?

Now, we all know why restaurant delivery has been supercharged the past two years. However, consumer trend data show that delivery was on the rise before the Covid-19 pandemic.

But now that people are eager to return to normal and the industry is on its way to returning to pre-pandemic levels, is delivery really here to stay?

According to another question asked of survey respondents by Restaurants Canada, more than half of QSR and full-service restaurant customers plan to stick with delivery.

For their 2022 Foodservice Facts report, Restaurants Canada asked back in May how often consumers planned to place delivery orders in the next six months.

Order frequency for QSR customers:

Never placed a delivery order and don’t plan to now: 29 percent
Order less often: 20 percent
Will order with the same frequency: 45 percent
Will order more often: 7 percent

Frequency of orders for full-service customers:

Never placed a delivery order: 24 percent
Order less often: 23 percent
Will order with the same frequency: 44 percent
Will order more often: 9 percent

Here to Stay?

Of course, there are multiple factors feeding the numbers above. Some people simply don’t like ordering and waiting for delivery. For these consumers, the practice doesn’t just seem convenient.

There’s also the consumer demand to return to in-person dining, socializing with family and friends. And, of course, meeting new people while dining out.

We must also consider inflation and rising costs. Often, restaurant spending is among the first to be reduced when consumers need to be more frugal. Rising menu costs are sure to curtail some delivery spending.

That said, it’s clear delivery is here to stay and must be considered a crucial element for most restaurant operations. QSR and full-service operators need to bear in mind is placing orders; how often they’re placing orders; and get them in the habit of placing orders directly.

Image: Oliur on Unsplash

January 27, 2021by David Klemt David Klemt No Comments

Rise of the ‘Not’ Delivery Platforms

Rise of the ‘Not’ Delivery Platforms

by David Klemt

The big third-party delivery services are facing pushback in the form of community-based competition.

We’ve kept our eye on this burgeoning trend and the push for operators to implement first-party delivery, also known as direct delivery.

It isn’t directly related to hospitality but the first of the “not” sites that grabbed our attention was Not Amazon. As the name suggests, Not Amazon is…well…not Amazon.

The founder highlights businesses owned and operated by women and BIPOC and LGBTQA+ people. However, Not Amazon goes even further, as illustrated in their mission statement:

“Providing the most we can, while taking as little as possible, in order to build a new kind of community.”

Community and neighborhood support is at the core of Not Amazon. The digital era has been marked by local, mom-and-pop brick-and-mortar businesses suffering in the wake of online shopping. Convenience has outweighed community. More often than not, women-, BIPOC- and LGBTQA+-owned businesses have been disproportionately affected by “convenience.”

Of course, it makes sense with a global pandemic to shop online. Not Amazon, which currently serves Calgary, Halifax, Toronto and Vancouver, provides a viable alternative to its behemoth of an online retail counterpart.

That brings us to two compelling hospitality industry-specific platforms.

It’s not a secret that KRG Hospitality supports first-party and last-mile delivery. In fact, we’ve very clearly explained that operators lose guest data and control over the guest journey when they sign with a third-party delivery company.

That’s to say nothing of the fees third-party services charge their F&B “partners.” Is it convenient that DoorDash, UberEats, Postmates and other companies provide a semblance of infrastructure, the lure of reaching a larger pool of customers, and drivers (including the associated liability)? Sure.

But are the costs associated with doing business with a third-party delivery company worth it? Most likely not.

Studies have also shown that when a delivery goes wrong on the third-party’s end–cold food, for instance–it’s the restaurant that tends to get the blame.

There are two websites that, like Not Amazon, have popped up to put supporting local restaurants front and center: Not UberEats and NotGrubhub.

The former serves Toronto and operates as a non-profit, according to their FAQ page. The latter is mainly focused on the United States, offers the option to purchase gift cards, and is powered by Lunchbox. NotGubhub also boasts more than 100,000 direct ordering links.

Both operate in similar fashion: Restaurants submit their information to be added to the respective platforms, provide an ordering link, and obtain a listing. From there, people can search by location for restaurants in their area to place a delivery order.

In the case of NotUberEats, deliveries are fulfilled by Ritual or DoorDash. As noted on their FAQ page, Ritual is offering Toronto restaurants free delivery through 2021. Restaurants can also DoorDash because, as NotUberEats explains in their FAQs, the service is charging a flat rate and not collecting any commissions.

People can also send restaurant information to NotUberEats to help grow their listings. Anyone who wishes to do so is asked to provide at least 50 businesses in their city and submit them here.

Operators ready to make the move to first-party/direct delivery and own their guest journey should consider the following platforms:

With delivery here to stay, the sooner operators transition to direct delivery, the better. There’s no longer a reason to lose control of guests, a profitable operational element, or costs.

Image: Nathan Dumlao on Unsplash

January 19, 2021by David Klemt David Klemt No Comments

Delivery and Takeout Food Trends for 2021: Canada

Delivery and Takeout Food Trends for 2021: Canada

by David Klemt

Patrons, analysts and experts have spoken: delivery and takeout will remain standards in the new era of hospitality.

Analysts and experts have spoken with data, and consumers have spoken with their dollars.

But there’s another consequential voice that matters when it comes to delivery: that of the operator.

There’s no denying that the operator is shoved aside in the third-party delivery relationship. At the very least, that’s the overwhelming perception. Once an operator signs on with such a service, their guest data becomes the delivery company’s data.

Whatever company owns the data owns the guest, their journey and engagement, and the targeted marketing efforts. That means a restaurant or bar’s guests receive offers and promotions for their competitors.

In short, third-party delivery platforms disrupt the guest journey.

However, there are some data the third-party delivery services do share. As we saw midway through 2020, for example, Uber Eats and Grubhub released the top orders and other useful information in publicly available reports. Some of the services also release end-of-year or year-in-review reports, as SkipTheDishes did for Canada.

Most of these reports are laser-focused on the United States. That’s logical given the number of bars, restaurants and other hospitality businesses to which Grubhub, Uber Eats, Postmates, Instacart, Seamless and other services have access.

SkipTheDishes, for the Americans reading this, is the Grubhub of Canada. For the Canadians reading, below are SkipTheDishes’ data regarding top orders, cuisine, and demographics in 2020:

Top Cuisines: Chinese, Italian, American/Canadian
Top Orders (General): Asian dishes, pizza, burgers
Top Orders by Item: Chicken sandwiches (also the top item in 2020 in the US), burgers, and French fries (mid-year data)
Top Vegan Provinces: Manitoba, Saskatchewan, British Columbia
Top Organic Provinces: British Columbia, Ontario, Alberta
Top Gluten-free Provinces: Manitoba, Alberta, The Maritimes
Top Dairy-free Provinces: British Columbia, Alberta, The Maritimes
Top Kosher Provinces: Alberta, Ontario, Saskatchewan
Top Dayparts: 5:00 PM was the most popular order time, and late afternoon (3:00-4:00 PM) and weekdays saw lifts. Late-night ordering (9:00 PM and beyond) slowed. (Mid-year data.)
Top Pre-order Daypart: 5:00 PM. More Canadians got into the habit of pre-ordering their dinners. (Mid-year data.)
Fastest-growing Segment by Age Group: 65+
Most Revealing Datum: 81% of customers ordered from restaurants they’d never visited in person.

That was last year. What’s in store for Canada this year? A scan of a few sources—Food Network Canada, Restaurants Canada, and Chatelaine—offers some valuable insights.

Plant-based items and foods recognized for boosting a person’s immune system are expected to be popular. The pandemic has given many consumers a reason to reevaluate what they’re putting into their bodies. All three sources predict people will be interested in and order plant-based foods and focus on health and wellness.

Both Food Network Canada and Chatelaine predicted chickpeas—an inexpensive, versatile and plant-based protein source—will be among the top food items sought out by restaurant guests (in-person) and customers (takeout, delivery). Most operators should be able to adapt and get creative to add chickpea-based items to their menus. The two sources also predicted that snacking will replace meals (at least occasionally), so snackable items and sides may take off this year.

Food Network Canada pointed to sauerkraut as an example of a health and wellness food item that may see a boost in popularity and demand due to its probiotic and gut health properties. The source also predicted that coffee and coffee-based F&B items will get a lift in 2021.

Restaurants Canada predicted that comfort food, popular throughout 2020, will remain in high demand. However, 2021 will bring in an interest in elevated riffs on comfort food classics. Citing specific examples, Restaurants Canada suggested Pad Thai French fries and Pulled Pork Mac and Cheese. The Canadian food industry association predicted that interest in and support of Black, Indigenous, and People of Color (BIPOC) cuisine, flavors and businesses will continue through 2021.

All three sources listed plant jerky as food item to watch in 2021.

What else should be in store for this year? Operators embracing first-party or so-called “last-mile” delivery to grab their share of the orders of this year’s trendy food items. Platforms such as Lunchbox, Olo, ChowNow can provide operators with the ability to own delivery and therefore the entire guest journey in the new era of hospitality. It’s likely an operator’s current POS can be updated to “unlock” in-house delivery, which would then need to be supported by a delivery menu, delivery supplies, and staff training.

For more information about first-party and last-mile delivery, please listen to Bar Hacks episode 13 with “Rev” Ciancio, an advocate of keeping delivery and data in-house.

Image: Norma Mortenson from Pexels