Millennials are ditching the kitchen and opting for food-delivery apps instead, according to a new report by UBS titled “Is the Kitchen Dead.”
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Millennials are cooking less because platforms such as Uber Eats, which UBS described as a “game-changer,” has made ordering more appealing. They were found to be three times more likely to order in than their parents and by 2030 online food delivery could command 10% of the total food services market, UBS said. They would command $365 billion in market share, currently up from $35 billion.
And millennials aren’t just looking at convenience as the only perk. Millennial favorites that have improved their quality of food like Panera and Taco Bell are making a major push into delivery. Chipotle’s delivery sales shot up 667% since announcing its partnership with DoorDash this spring.
However, food producers that rely on food ingredients sales such as General Mills and Conagra could take a hit.
Even so, General Mills is counting on updates to its Yoplait business and their move into pet foods to boost its bottom line. While Conagra has revamped brands like Healthy Choice and Banquet Foods.