How to save money — and avoid talking to anyone — when ordering takeout

November 2, 2016

By Alessandra Malito

Tech companies are entering the food delivery scene in full force; here’s how to capitalize

The way people order takeout food has evolved.

Instead of using a phone to call a restaurant, many now use their phones to access apps like Facebook FB, -0.59% or GrubHub GRUB, +0.46% to place food orders. Even though it costs more than cooking at home, it’s still possible to save a few bucks for those nights you just want to order in, especially now that there are so many services available.

Tech giants Google GOOG, -0.88% , Facebook and Amazon AMZN, -1.07% have entered the food delivery races. A Google Maps for iOS update lets users “place an order” from restaurants in major cities with a button on its app, 9to5 Mac reported last week. Amazon expanded its one-hour delivery service for its Prime members to Brooklyn. Facebook jumped in last month with an option to start an order from a restaurant’s page.

“More restaurants are doing mobile ordering, and because of that the younger consumer is definitely engaging,” said Darren Tristano, president of Technomic, a food-service and restaurant research and consulting firm. “Today using your mobile device with either an app or the internet becomes a very good, strong option.”

The fans of the hit 2000s show “Gilmore Girls,” which is returning for a four-episode revival on NFLX, +0.43% later this month, may find this familiar ­­— main characters Lorelai and Rory Gilmore hardly ever had a home-cooked meal on the show, opting instead for takeout and delivery for nearly every meal. Though that is somewhat of an exaggeration of real life, Americans do spend $1,100 a year on average ordering food online, according to turkey company Butterball, which surveyed 1,000 people last year. One in 20 ordered every one or two days, and 25% ordered delivery or takeout at least once a week, the study found.

Online orders may soon beat phone orders. About 904 million online orders were placed in May 2015, up from 403 million in May 2010, while 1.02 billion phone delivery orders were placed in May 2015, down from 1.39 billion in May 2010, according to research firm NPD Group.

The interest from tech companies and restaurants may be the popularity from delivery startups, such as GrubHub, Seamless some of which these tech companies are using on the back end to see their deliveries through. Ride-hailing app Uber has been on the delivery scene since 2014, though it launched its stand-alone food delivery app earlier this year. These services give those at home or at work takeout options from local businesses without having to eat in, or step into, those establishments.

Americans’ annual expenditures on food away from home jumped 7.9% from 2014 to 2015, according to Bureau of Labor Statistics, while food at home expenses jumped only 1.1% over that same period. The change doesn’t necessarily mean more people are ordering takeout, but that prices are going up, said Warren Solochek, president of food service practice at the NPD Group.

“If you’re working from home, restaurants have to do a lot more to incentivize people to go to a restaurant,” Solochek said. “I can order from GrubHub or I can go to the refrigerator, and guess what, I have most of my meal right there.”

Still, there are ways you can save, even when you do grab for your phone. Here are three:

1. Look for deals: Check food delivery sites or do a quick web search for promo codes before placing an order. Amazon is offering a $10 off code to its Prime members for its one-hour restaurant delivery and other services like Seamless and GrubHub periodically provide discounts for users, such as during the presidential election. Some sites also have first-time user deals.

2. Avoid additional fees: Double check your bill total to ensure you know exactly what you’re paying for, since some sites may tack on additional fees. Uber announced late last month that even its UberEATS service in certain cities would be subject to surge pricing, when there are more orders than drivers. The company said in its announcement the extra fee will appear as a separate line item before checkout and on the receipt.

3. Participate in referral programs: Seamless gives back to those who refer their service, in the form of $7 for every friend. In fact, both parties win — those referred get $7 off their first order and once they try the service, so will the one who recommended Seamless.

How 10 Food Trends for 2016 Will Transform Restaurants

November 2, 2015

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At this point a couple years ago, if you asked a restaurant executive how she might user Uber to build sales, she might have guessed as a prefix for the name of her brand’s Oktoberfest-theme burger. But now, Uber and Postmates are just two of the sharing-economy apps rapidly transforming foodservice and shaking up consumers’ expectations everywhere.
Going into 2016, there are dozens of similar forces shifting the ground beneath restaurants, and most of them are far beyond what brands have the power to control. While they are hard to predict, even for a data-rich firm like Technomic, they are easy to identify and understand, because they all spring from evolving consumer demand. Major moves from the biggest restaurant companies—McDonald’s moving its food supply toward more cage-free eggs, for example—aren’t dictated solely by the bottom line. They’re dictated by what consumers need from foodservice brands.

Technomic just released its 10 major food trends for 2016 with this dynamic in mind. Because consumers are the impetus behind all the upheaval, take a look at each trend and see how many of them you’re driving with your own dining out preferences.

The Sriracha Effect: This hot sauce from Thailand will continue to grow in popularity, but the “effect” Technomic predicts is that chefs and chain restaurant executives will search for the next hot ethnic flavor to find lightning in a bottle again. Early indications are that this will drive more use of and consumer interest in ghost pepper from India, sambal from Southeast Asia, gochujang from Korea, and harissa, sumac and dukka from North Africa.

The Delivery Revolution: Popular apps that simplify online and mobile ordering making “dining in” even easier and, in some cases, “dining out” irrelevant. Delivery services like GrubHub are starting to proliferate far beyond urban centers, bringing the convenience of a restaurant meal home, where plenty of people are likely camping out in front of the TV to binge-watch a season or two on Netflix. Other services are muscling in, including the aforementioned Uber and Amazon, which is expanding its Prime Fresh memberships for grocery delivery.

One particular threat to restaurants could be app-only services like Munchery, which delivers restaurant-quality food from a commissary, cutting out brick-and-mortar restaurants completely.

Negative on GMOs: In some cases, consumers have made up their minds before scientists have reached consensus, but many restaurant customers are declaring genetically modified organisms to be nonstarters. Many diners will agree with calls for labels of GMOs on menus and food packaging; some will go further and gravitate toward restaurants that advertise a GMO-free menu. That will be a major issue for the nation’s food supply, since many crops—particularly soy fed to livestock and other animal feeds—have been modified to boost their yields and productivity.

Modernizing the Supply Chain: Speaking of the supply chain, it already has enough challenges to deal with, including climate destabilization, rising costs for transportation and shipping, and pests. These will cause frequent repeats of shortages similar to those witnessed in 2015, like the unseasonable freeze that decimated Florida’s orange crop or the egg shortage that resulted from avian flu. Those hurdles will proliferate while more and more consumers demand food that is “fresh,” “local,” or just free of additives and artificial ingredients. Every brand, from restaurants to grocery stores and convenience stores, will make big investments in supply chain management in 2016.

Year of the Worker: Restaurants will also contend with rising labor costs, because of new mandates to cover full-time staff with health insurance and because the minimum wage could increase sharply depending on the state or city where they’re located. Pressure groups will ratchet up their call for a $15-per-hour wage, and they could possibly succeed in more cities like they have in New York and Seattle. Don’t expect any changes to the federal wage floor of $7.25 per hour, because no cooperation between a Democratic White House and a Republican Congress is possible, especially in an election year.
How will restaurants respond? Most will raise their wages to either comply with a new law or to compete for the best staff—but that means menu prices are going up as well, everywhere from fast food to fine dining. Also, more brands will experiment with technology and automation in the kitchens and the dining rooms to do more with fewer employees.

Fast Food Refresh: Consumers gravitate to “better” quick-service restaurants, which has transformed the industry. That has created a subset of “QSR-Plus” concepts with fresher menus and more contemporary designs, which exploits a price threshold between fast food and fast casual. Culver’s, Chick-fil-A and In-N-Out Burger are examples of this. “Build-your-own” menus are springing up across the industry, and many quick-service brands are adding amenities like alcohol.
QSR-Plus also helps other restaurants clarify their positioning by giving up their attempt to go upscale in a piecemeal approach, and those chains instead are returning to their roots with simplified menus and lower prices.

Elevating Peasant Fare: The popularity of street foods and consumers’ demand for portability and affordability have put things like meatballs, sausages and even breads back in the spotlight. But this time, those meatballs might have a nouveau twist, such as a blend of fancier meats like duck or lamb. Multiethnic dumplings will also continue to grow in popularity, from Eastern European pierogi to Asian bao.

Trash to Treasure: Rising prices for proteins will raise the profile of underused cuts of meat, organ meats or “trash fish.” The “use it all” mindset has also moved beyond the center of the plate. Some restaurants will use carrot pulp from the juicer to make a veggie burger patty, and perhaps other chains will follow the lead of Sweetgreen, which last year partnered with celebrity chef Dan Barber to make the wastED Salad, an entrée that saves vegetable scraps like broccoli stalks and cabbage cores and combines them with upscale ingredients like shaved Parmesan and pesto vinaigrette.

Let them eat kale stems!

Burned: Smoke and fire are showing up everywhere on the menu—smoky is the new spicy. Look for more charred- or roasted-vegetable sides, desserts with charred fruits or burnt-sugar toppings, or cocktails featuring smoked salt, smoked ice or smoky syrups.

Bubbly: Effervescence makes light work of the trendiest beverages. Technomic expects rapid sales growth of Champagnes and Proseccos, Campari-and-soda aperitifs, and adults-only “hard” soft drinks like ginger ales and root beers. In the nonalcoholic space, sales will also increase for fruit-based artisanal soda and sparkling teas.