Third-Party Food Delivery: 2Q22 Update
Key Takeaways
DoorDash continues to be the primary leader in the third-party delivery space, and has continued to grow through 2Q22.
Smaller cities such as Memphis and Sacramento have experienced massive growth in total third-party sales in 2Q22.
Of the top 100 brands for 2Q22, the majority of them experienced QoQ growth, with Pizza Hut and Crumbl Cookies growing the fastest.
Halfway through 2022, YipitData is once again looking at the market dynamics in the third-party delivery space.
Third-Party Order Volume Market Share
As in 4Q21, DoorDash still leads as the top third-party delivery platform, with over 60% of the total market share throughout 2Q22.
Grubhub, meanwhile, made up 9% of the total third-party market share in 2Q22, the smallest of the three players. Grubhub has also declined in share, down -2pp in July YoY. In 2Q22, Grubhub still made up 24% of total market share in the NYC metro area, its largest market, down -1pp from 1Q22.
Uber Eats remains relatively stable, though they’ve lost share in major markets QoQ in 2Q22 such as Boston (-3.1pp) and Philadelphia (-2.7pp).
Third-Party Order Volume Market Share
United States, Third-Party | January 2021 - June 2022
Top 10 Fastest Growing Metro Areas
However, sales growth varies by different cities across the country.
Memphis and Sacramento are the two fastest growing metros in third-party delivery sales in 2Q22, both with over 10% growth since 1Q22. More broadly, the majority of the fastest growing markets are either in the south, midwest, or in California. Cities that have been popular for remote workers are also experiencing a large growth in third-party delivery orders, such as Austin, Richmond, and Nashville.
However, not all metros experienced growth in 2Q22. In the Milwaukee, WI metro area sales declined 9% QoQ in 2Q22. Larger cities are experiencing declines as well, with Chicago, New Orleans, and San Diego all declining in QoQ sales.
The most popular delivery merchants vary in each of these markets as well. In Sacramento, DoorDash made up 87% of the sales market share in 2Q22, for example, while in Las Vegas, 52% of the market share is held by Uber Eats.
Top 10 Fastest Growing Metro Areas* by Third-Party Sales
United States, Third-Party | 2Q22
*looking at top 100 metros by total sales only
Top 10 Fastest Growing Brands
YipitData also took a look at the top 100 merchants in terms of sales on third-party platforms, and analyzed which of those brands experienced the largest QoQ growth in total sales. Of the top 100 merchants in 2Q22, 70% of brands experienced QoQ growth in sales from 1Q22 to 2Q22, while the other 30% declined in sales.
Pizza Hut was the fastest growing brand, with a 48% increase in QoQ sales. The brand is still relatively new to third-party, and is still continuing to grow. New customer acquisition is also up for Pizza Hut, with a 36% growth in the number of new third-party customers QoQ.
Crumbl Cookies, a national gourmet cookie company that's gained popularity on social media, has also experienced a 42% increase in sales. Additionally, they have increased their number of new third-party customers, which was up 32% in 2Q22 QoQ.
Other popular chains such as Cava, Sonic Drive-In, and Raising Canes also made the top 10 fastest growing brands, all with over 20% growth in sales.
However, not all brands had gains in sales, with Steak ‘n Shake down -25% in sales QoQ. Breakfast chains such as IHOP and First Watch experienced a -9% drop in sales.
Top 10 Restaurant Brands* by QoQ Growth in Sales
United States, Third-Party | 1Q22 vs 2Q22
*looking at top 100 brands by total sales only
Sources: Email receipt data
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