Technology is transforming every aspect of our lives. That reality includes food and agriculture – and comes in many forms. However, the list of the most transformational and influential technology applications in the food business has to include Grubhub.
Here’s what Grubhub lets you do: 1. Browse menus from your favorite local restaurants. 2. Select what you want to eat. Submit your order, and 3. Get the door and enjoy your food. In other words, the company facilitates convenience. And that focus is resonating with customers.
This week’s graph highlights the company’s gross food sales during the past eight quarters. The growth has been dramatic with food sales encroaching $3.5 billion during the past four quarters.
Meanwhile, Grubhub’s CEO Matt Maloney recently explained to Jim Cramer on CNBC that even further growth is in the offing.
Maloney explained total spending in the United States on take-out and delivery is roughly $200 billion. As such, Grubhub’s sights on $4 billion annually represents a small percentage of the total business. Maloney explains that, “We could 10X this company and it still wouldn’t even barely touch [that].”
That said, businesses like Grubhub could grow the take-out business and potentially change how we view eating out in the future. All of this is especially important when considering that 26-year-olds are the largest age group in the U.S. millennials seemingly embrace the convenience of eating at home.
What’s your view of Grubhub? How do you see the future of the restaurant business – will it change going forward? How might millennials influence that transformation? Leave your thoughts in the comments section below.
Speer is based in Bowling Green, Ky., and serves as vice president of U.S. operations for AgriClear, Inc. – a wholly-owned subsidiary of TMX Group Limited. The views and opinions of the author expressed herein do not necessarily state or reflect those of the TMX Group Limited and Natural Gas Exchange Inc.