Restaurant Delivery Customers Expect High Discounts Amid Inflation

Restaurant customers expect higher discounts on delivery orders than any other kind, according to PYMNTS research.

By the Numbers

Findings from PYMNTS’ March study, “Connected Dining: Consumers Like the Taste of Discount Meals,” which drew from a survey of more than 1,800 U.S. consumers in February, revealed that the average size of a discount on restaurant meals ordered for delivery amounted to 25.9% off, a slightly greater amount than the average for pickup orders and well above the 21% average discount on in-restaurant meals.

Overall, the share of consumers redeeming discounts on their restaurant meals is up 86% this year, with 26% of diners reporting having used a discount on their most recent restaurant purchase, up from 14% of in March 2022.

The news comes as many consumers are put off by the price of delivery, with rising restaurant inflation putting pressure on their food budgets. PYMNTS’ February study, “Connected Dining: Rising Costs Push Consumers Toward Pickup,” found that roughly half of restaurant customers have been shifting away from delivery toward pickup in response to increasing prices.

The Context

Brands are observing this demand. On restaurant giant Starbucks’ most recent earnings call, then-CEO Howard Schultz described the environment as “a time when people are generally trading down, and there’s a lot of discounting going on.”

Additionally, in an interview with PYMNTS, Kate Green, vice president of restaurant services and innovation at Grubhub, said discounts are key to maintaining restaurant customers’ loyalty through these inflationary pressures.

“We’ve seen a lot of trends toward what we call the ‘engagement phases’ of a diner lifecycle,” Green said. “So, it’s not just about acquiring that diner, but how you engage with them. Diners expect things like marketing and promotions and campaigns to both entice them to place an order and reward them for being a returning customer.”