Restaurant survival guide for the 2020sRestaurant survival guide for the 2020s

The next decade holds tremendous opportunity for the restaurant industry. Restaurants already account for $863 billion—about 4% of US gross domestic product.1 New digital capabilities like online ordering and delivery, next-generation point-of-sale (POS) systems, and data-driven insights are leveling the playing field, helping independent restaurateurs stand out in a crowded marketplace.

More than any time in the past, small and medium-size restaurants have amazing tools at their disposal to grow revenues and cultivate more loyal and satisfied customers. That is, if they can recognize and adapt to shifting tastes and trends before their competitors do.

A unique view into the future

At Grubhub, we’ve been helping restaurants thrive in this dynamic, ever-changing marketplace for over 20 years. Today, we’re the nation's leading pickup and delivery marketplace with the largest restaurant network. More than 300,000 restaurants in 3,200 US cities and London use our platform every day to connect with our more than 22 million hungry customers.

Processing more than 500,000 orders daily, we have the hard numbers to understand what works, what doesn’t, which new tastes and trends are on the rise, and how they’re likely to affect your business. Drawing on those insights, we’re looking ahead to identify the key factors that will reshape restaurants in the 2020s.

Are you ready for what’s coming? Read on to learn about the biggest trends likely to reshape the industry in the next decade and how you can make the most of them.

1. IBISWorld. “Industry Report: Single Location Full-Service Restaurants in the US, 2014.”

For independent restaurants, the math around delivery is straightforward: In a brick-and-mortar restaurant, your revenues are capped by front-of-house capacity and staffing. When you deliver, the only limit is how quickly your kitchen can fill orders.

In the next decade, expect delivery to become even more popular than it is today, and more critical to most restaurants’ bottom line. The opportunity—more restaurants, more customers, more drivers—will continue to grow. Bottom line, carryout is no longer just for pizza and fast food. Customers want a full menu of dining options available on their terms, wherever they choose. And restaurants of all types and cuisines are lining up to give it to them.

How Grubhub can help

Online ordering has become one of the most popular—and profitable—ways for restaurants to reach more customers and generate incremental revenues. Nearly half of all consumers ordered takeout or delivery online or via an app in the past year.3 And, 38% of customers who order online used third-party delivery services like Grubhub within the last month.1

Grubhub has been working with independent restaurants to capitalize on these trends longer than anyone else. We’ve helped hundreds of thousands of restaurants quickly adopt online ordering and delivery, and grow their orders and revenues. Independent research from Technomic shows that, among independent restaurants using Grubhub:

1. Toast. “Restaurant Success in 2019 Industry Report.”

2. RestaurantBusinessOnline. “Technomic: Expect a More Competitive Environment in 2019.” April 9, 2019.

3. National Restaurant Association. “2019 State of the Industry Report.”

4. Statista. “Spending on restaurant takeout and delivery in the United States in 2015.”

Just as demographic and cultural changes drive demand for more convenient dining options, in the coming decade, customers will also expect more personalization. Your most loyal customers will want to be recognized and appreciated for their business.

Given the stronger relationships and fine-grained marketing data that businesses gain when they can meet those expectations, more restaurants will be launching loyalty programs and targeted promotions in the 2020s. If you’re not, you could be missing an important opportunity to solidify loyalty and keep your best customers ordering from your restaurant instead of your competitors’.

There are good reasons for independent restaurants to implement loyalty programs and targeted promotions for their customers: they improve the bottom line, help you reach customers you otherwise wouldn’t, and give you deeper insight into your customers’ patterns and behaviors.

How Grubhub can help

Loyalty programs and targeted digital marketing were once only feasible for larger chains, due to high startup costs and ongoing administration. With its new Smart Promotions tool, Grubhub is making it possible for even smaller restaurants to benefit from these kinds of programs.

Smart Promotions are available to Grubhub restaurants at no cost, and allow them to pursue the goal or goals most important to them, including:

Restaurants choose how much they’d like to invest and the Smart Promotions tool takes care of the rest, automatically adjusting promotions for optimal effectiveness and return on investment. Advanced reporting gives restaurants visibility into how the program is performing each month.

Just as demographic and cultural changes drive demand for more convenient dining options, in the coming decade, customers will also expect more personalization. Your most loyal customers will want to be recognized and appreciated for their business.
Given the stronger relationships and fine-grained marketing data that businesses gain when they can meet those expectations, more restaurants will be launching loyalty programs and targeted promotions in the 2020s. If you’re not, you could be missing an important opportunity to solidify loyalty and keep your best customers ordering from your restaurant instead of your competitors’.

There are good reasons for independent restaurants to implement loyalty programs and targeted promotions for their customers: they improve the bottom line, help you reach customers you otherwise wouldn’t, and give you deeper insight into your customers’ patterns and behaviors.

Loyalty programs and targeted digital marketing were once only feasible for larger chains, due to high startup costs and ongoing administration. With its new Smart Promotions tool, Grubhub is making it possible for even smaller restaurants to benefit from these kinds of programs.

Smart Promotions are available to Grubhub restaurants at no cost, and allow them to pursue the goal or goals most important to them, including:

Restaurants choose how much they’d like to invest and the Smart Promotions tool takes care of the rest, automatically adjusting promotions for optimal effectiveness and return on investment. Advanced reporting gives restaurants visibility into how the program is performing each month.

Since 1999, Grubhub has helped tens of thousands of independent restaurants make the most of emerging industry trends, and capitalize on new innovations to position their business for success. Today, more than 155,000 small- and medium-size restaurants use the Grubhub for Restaurants platform to (literally) meet their customers where they live and grow their orders, revenues, and customer loyalty.

By working with Grubhub, you gain a valuable partner—and not just for online ordering and delivery. We provide:

Are you ready to capitalize on emerging industry trends and steer your restaurant to success, in the 2020s and beyond? Grubhub can help.

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