Olo CEO Says Delivery’s Incrementality Is Waning

As more restaurants offer delivery and advertising of delivery options continues to increase, Olo CEO Noah Glass said restaurants should expect deteriorating levels of incrementality, meaning that fewer truly new customers will be up for grabs in the coming year. 

…Incrementality is a key term in the restaurant delivery landscape, as restaurants large and small crunch their numbers to determine whether delivery customers are new to the restaurant or if an increased in delivery sales correlates to a reduction in in-store traffic.

As restaurants and delivery providers continue advertising to boost awareness of delivery options, some restaurant executives and analysts have begun thinking of lower-margin delivery sales as a marketing cost for introducing the restaurant to a new pool of consumers.

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