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10 • FOODSERVICE EQUIPMENT & SUPPLIES • OCTOBER 2016 people & events Early Lessons on Food Delivery W hile the practice of ordering food with a device remains in its early stages, Rabobank analysts believe the continued rise of the on-demand economy will have a lasting impact on take-out and retail food segments. Consumer spending at restaurants and other foodservice venues exceeded grocery bills for the first time last year, says Paula Savanti, Rabobank senior research analyst, consumer foods. Based in the Netherlands, Rabobank Group provides banking and financing to food, beverage and agribusiness industry. "Competition for the consumer's food dollar has never been greater." Rabobank purports that new technology-driven services will only increase food delivery's popularity and dubs the new era Food Delivery 2.0. Rabobank analysts expect some shake-out given the amount of money currently flowing into the food delivery sector: not all players will survive. Still, the firm sees a long-term future for new platforms such as delivery apps, like Grubhub; meal kits, like Blue Apron, where customers prepare their already prepped meals; ready-made, chef-prepared meal de- livery, like Sprig; and online grocery delivery, like Peapod (More in Trends, page 16). Convenience remains the key driver in consumers' decisions to use these services, Rabobank points out. But having leading-edge technology in the form of an app will not be enough to ensure success. Getting the logistics right, meaning getting the food from point A to point B as delivery times continue to shrink, will be essential. London-based Technavio also released data on the global delivery and take- away food market. The technology and advisory firm declared America leading the market and noted delivery companies are currently vying for position through price wars and promotional offers. The decline in overall consumer lunch visits in the second quarter compared to the same period last year. The lunch drop was a big contributor to flat overall second quarter growth. Source: The NPD Group -4% The percentage of third-party delivery users who report ordering from casual dining restaurants that do not offer delivery on their own. Source: On Demand Delivery: Disrupting the Future of Foodservice, Technomic 34% The projected growth rate for total on-premise alcohol consum- er spending in 2016, with a similar trend line forecasted for 2017. Source: Technomic's Adult Beverage Planning Program 2.3% Source: Rabobank A mobile platform for centralized ordering and delivery from multiple restaurants. Next day or within-hours delivery of grocery items. Complete meals, usually chef- designed, delivered hot or chilled. Subscrip- tion-based home delivery pro- grams with prepped ingredients for home cooks.