Seated Pitch

Goals

To understand more about food delivery apps such as GrubHub, Seamless, and Doordash, as well as restaurant-focused apps such as Yelp, Resy, and OpenTable, including customer use of and opinions towards these apps, customer demographics and psychographics, and restaurant owner opinions of these apps. As well, to the history of the FOMO (feeling of missing out) and JOMO (joy of missing out) memes along with memes/trends that have been started and popularized by millennials. Finally, to understand the spending habits of millennials, with a specific focus on how and where they spend money on food, particularly as compared to their other spending and to other generations.

Early Findings

Millennial Spending Habits

  • More than other generations, millennials are interested in "social responsibility and environmental friendliness when considering their purchases".
  • As well, millennials tend to prioritize companies providing a discount of some time, and they "value price over recommendations, the brand’s reputation, and even product quality".
  • A full 60 percent of this generation is willing to spend more than $4 on a single coffee, and 70 percent are willing to spend more money in order to eat at a "hip" restaurant.
  • Compared to other generations, millennials spend more annually on groceries and restaurants, gas, cellphone bills, hobbies, electronics, and clothing.
  • Alternatively, they spend less than other generations on television, traveling, pharmaceuticals, and furniture and building materials.
  • More specifically, millennials dedicate the largest portion of their budgets to food and beverages, including groceries, dining out, and ordering delivery.
  • As of 2016, "millennials spent 13.1 percent of their salaries on food". Comparatively, older generations spent between 13.2 and 14.7 percent of their annual incomes on food when they were the age that millennials are currently.
  • Given that the average salary of a millennial is $56,099, this means that an individual millennial is spending about $7,348.97 on food each year.
  • While Generation X and Baby Boomers are currently spending the most money on food and beverages, millennials are expected to surpass them both within the next 10 years.
  • In total, millennials spend an average of $47,112 annually per person, and $600 billion combined in the United States alone.

Proposed next steps:

You need to be the project owner to select a next step.
We would recommend continued research to provide a history of both FOMO (feeling of missing out) and JOMO (joy of missing out). This will focus on how the trends/memes originated; when, where, and by whom; and how they became so popularized. As well, we will work on identifying 6-9 trends/memes created and popularized by millennials, with a focus on those relating to pop culture, ways of communicating, and key phrases. For each, we will describe what it is, explain when and how it was created, and how it became popularized. We will focus on trends/memes that have been adopted in a major way not just by millennials, but by other generations.
As well, we would recommend continued research into food delivery and restaurant-focused apps, including GrubHub, Seamless, DoorDash, and Caviar, as well as Yelp, Resy, and OpenTable. Specifically, we will focus on how restaurant delivery apps (GrubHub, Seamless, DoorDash, and Caviar) grew their markets. For each app, we will provide a summary of their market penetration strategies and how they worked to grow the app in the United States and, more specifically, in highly-populated tier 1 and 2 cities such as New York, San Francisco, Los Angeles, Chicago, Austin, and San Diego. (4) As well, we would recommend research into restaurant owners' opinions of and feelings towards food delivery apps such as GrubHub, Seamless, DoorDash, and Caviar. Specifically, we will identify those things restaurant owners do and don't like about food delivery apps, their general feelings towards this type of technology, and any specific ways that these apps impact restaurants (such as with regards to total earnings). (2) Further, we would recommend continued research into what consumers do and don't like about restaurant-focused apps, including Yelp, Resy, and OpenTable. This will focus on consumers' perceived likes and dislikes concerning these apps, with a specific focus just on the apps (as opposed to their websites). (1) As well, we would recommend continued research into what drives a consumer to use a specific app repeatedly. Specifically, we will look into what motivates a user to download and regularly use an app, including what features are most likely to cause this habit; as well as what types of features drive someone to download but rarely use an app. As well, we will identify three apps which are commonly downloaded and routinely (daily) used, as well as three apps which are commonly downloaded but rarely (1-2 times a month or less) used. For each app identified, we will provide its name, the number of downloads on both iPhone and Android, a brief description of the app and its features, a description of how often it is typically used, and an explanation of why that is. (2) Additionally, we will work on providing a consumer profile for users of restaurant-focused apps such as Resy, OpenTable, and Yelp. This will include both a demographic (age, gender, geographic location, income level, and education level) and psychographic (their motivations, interests, and hobbies) analysis for these consumers. (2)
Finally, we would recommend research into why Mondays are traditionally the worst/slowest nights for restaurant businesses. As well, we will work on providing 2-3 case studies of restaurants that have successfully increased their Monday traffic. For each restaurant identified, we will provide their name, their location(s), what strategy they used to increase traffic, and evidence that it was successful (such as increased sales or another similar metric).