In Dashmote’s recent Food Delivery Insight Report Europe - H1 2023, we analyzed the top franchises dominating the food delivery landscape across various European nations. This article embarks on a detailed exploration of the No.1 franchise in each country, as determined by their digital storefront listings during the second quarter of 2023. Our focus centers on the beverages offered by each franchise, unraveling the differences within their beverage offerings on food delivery platforms as compared to their conventional on-site menus.
Revenue in the European Online Food Delivery market is projected to reach US$122.00bn in 2023, and is expected to show an annual growth rate (CAGR 2023-2027) of 12.31% [1]. This flourishing market provides franchises a diverse and competitive digital landscape to expand customer networks.
According to Dashmote’s report, among the 19 countries researched, McDonald’s emerges as the top 1 food delivery franchise in a staggering 9 nations. With a presence in over 30 countries across the continent, the golden arches have become a distinct symbol of fast food. McDonald’s reports of 2023 second quarter results announced that digital systemwide sales in their six markets were over $8 billion for the quarter, representing nearly 40% of their systemwide sales [2]. This digital momentum signifies the importance for quick-service restaurants to partner with delivery platforms to open up additional channels for consumers to access their ‘Happy Meal’. As shown in the above graph, McDonald’s influence on food delivery is particularly evident in the central European market, with a significant presence in countries such as Germany, France, and Austria.
Meanwhile, Burger King claims the title of the top franchise in two distinct countries: Norway and Spain. According to external sources, Burger King is reported as the most popular online food delivery brand in Spain [3], providing additional support for the credibility of Dashmote's findings.
The remaining countries each witness the dominance of a singular franchise. As demonstrated by the graph, Domino's Pizza, Hesburger, Coffee Island, Apache Pizza, New York Pizza, KFC, Telepizza, and Subway all take the lead in their respective countries, demonstrating the dynamic food delivery industry across Europe.
The majority of franchises typically enter into an exclusivity agreement with either Coca-Cola or Pepsi. Through this arrangement, the restaurant becomes eligible for a discounted rate on the specific range of products from their chosen beverage provider. Additionally, these partnerships often extend to various collaborative initiatives, such as co-promotions of each other's products, which may include activities like retail media or advertising campaigns. In our recent research, we have identified the following franchises as Coca-Cola vendors: McDonald’s, Domino's Pizza, Hesburger, Apache Pizza, New York Pizza, and Burger King. Franchises that offer Pepsi products include KFC, Telepizza, and Subway. Interestingly, Coffee Island, Greece's leading franchise, stands out as the sole franchise that does not offer either Coca-Cola or Pepsi products.
Red Bull represents another widely favored menu item across various franchises, distinguishing itself from the ongoing Coca-Cola vs. Pepsi competition. Holding a substantial market share of 43% in the energy industry [4], Red Bull held the top position as the most popular energy drink brand in 2020, and ranked the third most valuable soft drink brand behind Coca-Cola and Pepsi [5].Our research reveals that among the leading franchises in each country, three of them include Red Bull in their offerings. These franchises are McDonald's in Austria, Germany, and Romania.
Fast-food chains have started incorporating alcoholic beverages into their menus as a strategy to attract new customers. While this practice may seem somewhat unconventional for quick-service restaurants, it has the potential to significantly boost their overall sales for franchise systems. Additionally, it allows fast-food chains to compete with higher-end fast-casual competitors who cater to quality-conscious consumers on a global scale. Despite stricter local regulations in some countries, alcoholic beverages are becoming increasingly prevalent on franchise menus.
Although ordering a beer from McDonald's or Burger King is no longer considered unusual, our research reveals that alcoholic beverages are still relatively limited on the food delivery menus offered by franchises. In fact, only McDonald's in Austria and Italy currently provide beer options through food delivery platforms. Telepizza in Portugal offers Somersby and beer (no brand mentioned), while KFC in Poland offers the non-alcoholic beer Lech free 0.0. Interestingly, New York Pizza in the Netherlands stands out by offering the most diverse selection of alcoholic products, ranging from beers from Heneiken and Birra Moretti, to red wine, white wine, and rose from Monterre Merlot.
Dashmote is dedicated to assisting enterprises in overcoming obstacles and achieving success in the digital market space. As the foremost provider of big data and AI analytics solutions in the food and beverage (F&B) sector, we enable companies to make informed strategic choices by offering thorough analysis and invaluable insights into the food delivery market and F&B trends. Interested in taking your online business to the next level? Feel free to reach out to our team at contact@dashmote.com. Together, we can establish a robust online footprint for your Food & Beverage enterprise.
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Europe has a centuried history with food delivery. The first ever food delivery took place in the mid-19th century, Italy. King Umberto I and Queen Margherita received the first pizza delivery. Fast forward to over 100 years later, today, online food delivery has become a billion-dollar business. The European food delivery market is expected to grow with a double-digit CAGR of 10.7% from 2021 to 2027 and is projected to reach a value of US$66 billion in 2027 [1]. Moreover, user penetration is reaching 24.9% in 2022 and is expected to hit 36.5% by 2027 [2].
As online food ordering has become increasingly prevalent, aggregator platforms, such as Deliveroo, Uber Eats, Just Eat, and Wolt, are optimising everything they can, from reliable business models to appealing user experience, to win the intense race of European food delivery. In this article, we leveraged Dashmote’s Data Analytics SaaS platform and included statistics from 5 major markets - UK, France, Germany, Spain, and the Netherlands, to report on the ongoing food delivery race between major aggregator platforms in Europe.
According to Dashmote’s Q3 data, the UK has by far the biggest food delivery market in Europe. It has more than 250K Digital Storefronts (DSFs) across its major delivery platforms. Deliveroo is the most significant player in the UK in terms of market share and growth. It take up around half of the total restaurant base in the UK.
The second largest market in Europe is France, with 137K DSFs on food delivery. Uber Eats is its biggest player, occupying 44% market share in Q3, 2022. Surprisingly, the year-to-date growth of restaurant listings of Uber Eats (8%) is significantly lower than the 2nd biggest player Deliveroo (26%) and 3rd biggest player Takeaway (23%). With its fast-growing peers, it will be difficult for Uber Eats to remain the game leader in France.
Spain ranks 3rd in the race with 100K DSFs on its food delivery. In Spain, Glovo, with 48K DSFs, is the biggest aggregator platform in terms of restaurant listing. However, Just Eat, with the highest year-to-date growth rate of 28%, is quickly catching up. Uber Eats performs well in many countries, but not in Spain. In Spain, it has the smallest restaurant base and lowest year-to-date growth rate (9%) in 2022, compared to Glovo (11%) and Just Eat (28%).
Uber Eats Germany saw a staggering year-to-date growth rate of 64%. This is not mistaken. In fact, Uber is growing its German delivery business and plans to include 70 cities by the end of the year, expanding from its roster of 14 cities in March 2022 [3]. Our data clearly reflects this expansion. Moreover, Wolt Germany also had a large year-to-date growth of 48%. Entering Germany in 2020, Wolt has now expanded to 10 cities and made Germany one of its key markets. In March 2022, Wolt opened a new office in Berlin. As of June 1st, 2022, DoorDash officially acquire Wolt. Despite a lot of changes this year, Wolt is succeeding in its expansion in Germany in terms of restaurant listings, as evidenced by our data.
The intense race between aggregator platforms in the ever-changing landscape of European food delivery brings enormous opportunities for food and beverage brands to expand digitally and reach a wider consumer. Unlocking these opportunities requires constant tracking and analysing the latest data to gain a sophisticated understanding of where the market is heading. Dashmote is the leading big data and AI analytics company in the food & beverage industry. We help F&B enterprises by empowering leaders and analysts to track and analyse publicly available data to contribute to making strategic decisions for your brand. Do you want to see the same research carried out on Southeast Asia? Check out HERE. Do you want to know more about retrieving market insights across food delivery and F&B?
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