Restaurant digital orders up 145 percent from last year: NPD Group

Amid challenging 2020, off-premises performance may be silver lining

Digital orders might be the silver lining for the restaurant industry after a challenging 2020 due to the pandemic. Although US restaurant operators faced many challenges last year, there was significant progress in off-premises business, according to data from The NPD Group. Restaurant traffic increased from a low of (35) percent versus last year to a high of (11) percent in December.

Operators have found a way to pivot to off-premises, increasing their ability to produce food orders. In January of 2020, digital orders from restaurants were up a healthy 19 percent from last year; in December, they had improved to an impressive145-percent increase from the prior year.

“Digital orders for pick-up and all off-premises modes will be a growth engine for the U.S. restaurant industry moving forward,” says David Portalatin, NPD food industry advisor and author of “Eating Patterns in America.”

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Pickup orders represent the larger share of off-premises business for restaurants, and these sales were up 10 percent by December, compared to a year ago, after having seen just an uptick of 3 percent last January. Notably, pickup orders totaled 46 percent of off-premises orders by the end of 2020.

Likewise, delivery orders started 2020 with just a 1 percent increase and ended December up 137 from last year. Restaurant delivery has come a long way, but still represents just 11 percent of total share of off-premises orders, notes The NPD Group.

Drive-thru has become a popular and perceived-safe way for consumers to enjoy takeout. Its growth at the beginning of last year represented an 4-percent increase in orders from the prior year, but jumped to up 22 percent by December. Drive-thru finished out the year with a 44-percent share of off-premises orders.

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Portalatin added, “Consumers, both new and former users, have now experienced the convenience of digital ordering, especially for carry-out and delivery, and will continue using these services long after the pandemic is over.”

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