Foodies are Getting Their Meal One Way or Another - Boston vs. Los Angeles
Start.io research provides a glance into how restaurants are pushing to bounce back from the pandemic while food delivery apps are trying to leverage the change in consumer behavior in their favor. Los Angeles is leading the trend with 16% of the city using food delivery apps versus 5% in Boston.
NEW YORK, Aug. 30, 2021 /PRNewswire-PRWeb/ -- When the pandemic wave swept the world, the food industry had to adapt rapidly to satisfy consumer demand in different ways than before. Food delivery apps in particular took advantage of the situation to dramatically increase business opportunities. From a niche market mainly serving millennials and Gen Z, food delivery apps have become the go-to-solution for a wider range of consumer segments wherever shelter-in-place orders are in effect. In 2020, the ride-share company Uber generated US$4.8B worth of revenue from its Uber Eats division. In other words, over 40% of their business came from food delivery. This is a prime example of the change in equilibrium between dining out and ordering in. Examination of data provided by Start.io demonstrates that food delivery apps still hold a major share of the food industry, even as the pandemic ebbs and flows.
The concept of ghost kitchens, where there is no in-house dining at all, is specifically tailored for delivery apps. Orders are prepared in a kitchen dedicated to deliveries only. Despite the seeming efficacy of ghost kitchens, there are some open questions around scalability and operational agility across the US. A key decision for business owners is where to locate ghost kitchens in order to optimize their proximity to prime audience segments.
Boston versus Los Angeles
In both cities, there are many "foodies" who are fans of everything to do with dining out or in. Yet, while 37% of users in Los Angeles are foodies, the number in Boston is only 17%. The trend is similarly reflected in food delivery apps, with 16% of Los Angeles users who actively order food on their mobile device, versus just 5% in Boston. Both Boston and Los Angeles show that affluent users are the leading audience for delivery apps, with over 50% earning $75K annually or more. Identifying the right and relevant audience in other major cities and states can be more challenging, however it will be an essential part of managing food deliveries, making decisions about ghost kitchen operations, and making food delivery businesses viable.
With the recent launch of Start.io's Audience Segments hub, advertisers now have access to up-to-date data about mobile users in 500+ different segments, and hundreds of locations worldwide, providing insights that can help identify target audiences – all in a few seconds with a simple search console.
Gil Dudkiewicz, Start.io's Co-Founder and CEO, explains: "Identifying the right audience for a brand is much more than just demographics or annual income. New methods integrate a whole new set of factors. The key is in gaining a deep understanding of the user, including product affinities. Our end-to-end platform enables a direct link between brands and mobile app developers. Mobile apps are the most powerful option in today's marketer's toolbox."
Media Contact
Maya Carmely, Start.io, +972 523340030, [email protected]
SOURCE Start.io
Share this article