Dive Brief:
- Consumers would order takeout and delivery more often if they had the money to pay for it, according to the National Restaurant Association’s Off-Premises Restaurant Trends report, which was released Wednesday.
- Across all demographics, 82% of consumers said they’d order delivery more often — including 89% of millennials — while 71% said they would order takeout or use the drive-thru if they had more funds.
- Additionally, a majority of consumers (66%) said they wished they had more takeout options in their markets while 61% said they wanted more restaurants that offered delivery and drive-thru services.
Dive Insight:
While many chains have been focused on improving dining room ambiance, NRA’s report shows that consumers still have a strong preference for off-premise occasions. Millennials and Gen Z consumers see off-premise as an essential part of their lifestyles with takeout being important for 67% of surveyed Gen Z consumers and 64% of millennials.
Consumers typically order off-premise at least once per week with 37% of consumers ordering delivery, 47% ordering takeout and 42% using the drive-thru weekly.
Operators have responded to the demand by expanding off-premise offerings and shifting their business models.
“Off-premises dining has become a key revenue driver and an essential way to engage consumers,” Chad Moutray, chief economist at the National Restaurant Association, said in a press release. “It now accounts for a larger share of sales for 58% of limited-service and 41% of full-service operators compared with 2019—providing a critical path to restaurant resilience and growth despite ongoing economic pressures.”
Only one in five operators say off-premise has declined compared to 2019. Full-service restaurants saw the biggest uptick in off-premise traffic, which grew to 30% in 2024 compared to 19% in 2019. Off-premise traffic mix grew to 83% for limited-service restaurants,compared to 76% in 2019.
Forty percent of limited-service and 30% of full-service operators said they made changes to restaurant interiors and/or parking lots to accommodate off-premise orders within the past few years. Many chains, including Wendy’s, Burger King, Denny’s, Chili’s and Applebee’s are looking into remodel programs and/or new prototypes, which typically result in higher sales.
Restaurants anticipate the use of various channels will increase, with 43% of full-service operators expecting curbside pickup windows to become more common in the segment, while 31% expect a greater number of dedicated takeout counters and 12% anticipate additional drive-thru lanes. Chains like Del Taco, McDonald’s and Chick-fil-A have all been adding off-premise-only stores over the past few years.
“Many see these options not just as operational updates, but as strategic growth opportunities in a changing market,” the association said in the press release.
