Single serves push down avg foodtech order value by 45%

Food delivery platforms are witnessing a reduction in average order value by upto 45%, a research report said. From Rs 380 in July- Sep quarter of 2017, now the average order value has come down to Rs 260, data from management consulting firm Redseer Consulting shows.

An increase in the consumption of single serve meals, available in the price range of Rs 40 to Rs 250 – introduced by the foodtech platforms, is contributing to the shift.

Migrant urban millennials, place orders for such affordable offerings regularly for lunch and breakfast.

Mrigank Gutgutia, director, Redseer Consulting adds that some of the consumers are switching over from eating at the cafeteria or unorganised ‘mess’ kitchens, thereby adding to the orders.

“The trend has been more pronounced since July-September quarter of 2018 and the order value has seen a more pronounced fall from Rs 337 to Rs 260 in this period,” he added,

Food delivery platform Swiggy adds that over 250k single-serve dishes have been curated, which are being consumed for lunch.

“If you look at the consumption pattern, of the average 100 meals the user has in a month, more than 50% are single person consumption. For example breakfast, lunch and snacks on weekdays at office. So, on those days, they’re looking for single-serve and conveniently sized meals that help them avoid over-ordering,” said a spokesperson from Swiggy. The company adds that restaurants see a 30% growth in orders on average after coming onto POP.

Industry observers further add that single-serve meals also make into the growing breakfast segment. “These days, a lot of diners are pressed for time and consume their breakfast during commute. They take to the affordable, limited quantity meal pack that can be easily eaten and disposed. Also, health conscious folk find offerings in oats, millets etc in such value packs,” said Anil Talreja, partner, Deloitte.

“Tier 2 expansion is also one of the reasons. The new set of users in the platform try out low priced orders, which has also contributed to a drop in the order value,” added Gutgutia.

Source https://retail.economictimes.indiatimes.com/news/food-entertainment/food-services/single-serves-push-down-avg-foodtech-order-value-by-45/71433116