Point, click and eat. The future of food is ruled by this company.
Michael Spencer
A.I. Writer, researcher and curator - full-time Newsletter publication manager.
There's something strange about how Millennials eat, and it's changing everything in the restaurant industry. Read on.
Millennials aren't just spending more on healthy food and restaurants, they are driving a new future that will be know as the year of food, 2017.
Millennials are more interested in getting food in all its forms delivered to their doorsteps. So who's going to cash in on this? It will be Amazon.
Eating In the Smart Home
Morgan Stanley research suggests a sizeable amount of restaurant food is eaten off-premise. A staggering $210 billion, yet only $11 billion is delivered after being ordered online. While online food ordering is catching on with apps like GrubHub,
The digital food delivery growth is about 15% a year.
In less than five years it's gone from a $30 billion to $50 billion industry and GenZ is likely to continue that trend.
As delivery is getting cheaper, Americans will consume more food made by others than ever before.
Amazon's Food Play is Significant
Amazon's entrance into brick and mortar grocery retail is just the beginning of course. To own the future, you must own the channel.
- Amazon's Whole Foods Acquisition: Health Grocery
- Amazon Meal Kits, which are home-delivery meals.
- Amazon Fresh Pickup
- Amazon Restaurants: Amazon's Food Ordering future (likely Acquisition)
These are going to be formidable pillars in the future of Amazon's disruption of the restaurant and food industry.
You don't have to be Kroger, Walmart or Blue Apron to realize what's coming.
Food on Demand is Coming
Food ordering used to be synonymous with Pizza, however the falling costs of delivery means food ordering apps are exploding led by services such as GrubHub, Seamless, DoorDash, UberEats and others.
Diners visiting restaurant menus via mobile apps is increasingly the norm and more common among young people. Young people are spending significantly more on eating out than their parents.
Since 2009, eating out spending has been growing by well over 3% per year. Total food budget spent on eating out is nearing 50%, up from about 25% in 1970.
Amazon will hijack the new American lifestyle of food and become leaders in the market at multiple points of the trend; where Millennials and GenZ will be Amazon's best customers.
Online Delivery
While grocery delivery may be slower to catch on, online delivery is fastly becoming a larger slice of the restaurant industry's new way to reach diners.
Amazon is going to help reality catch up with our appetites.
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Do you order food on mobile food delivery apps? Which is your favourite? Can Amazon close the circle in the future of how we eat?
Social Entrepreneur and Imaginative Leadership Coach
7yGood thoughts and aligns with some now old news: for the first time <a href="https://qz.com/706550/no-one-cooks-anymore/">in 2015 consumers spent more food dollars for meals outside the home than for groceries</a> . Your data suggests it's the Millennials that crossed the lines...interesting.
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7yI doubt one company can work successfully in all the areas/industries. Each company has its own core skills. At present they (Amazon) has money to spend, Investors have more confidence than others. Tomorrow it may not be the case.
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7yGreat article. Whole Foods was a solid acquisition not just for its brand equity, but if you can't beat em, buy em.