During the pandemic, every business has drifted towards the digital space. However, the government has put forward many safety guidelines to prevent the spread of coronavirus transmission. Therefore, people were forced to stay at homes. With the strict lockdown rules, there is not even a single person walking down the roads. Additionally, the sales of many businesses went down. Even when the restrictions were relaxed, many businesses experienced loss. In such critical situations, one business that was running successfully was an online food delivery service.
The reason behind the success is because people found it convenient to order the food they love from a local restaurant and get them delivered with a few taps using a mobile app. One added benefit for this success is because the foods were delivered to their doorsteps via contactless delivery by the delivery executive. The business owner gains profit with the on-demand food delivery app. Also, the restaurant that registered with this app gains revenue. Amid the pandemic, the choice of using the on-demand food delivery app is good as there is a necessity for maintaining social distancing.
Are you operating a food delivery business in the traditional way? Then, it is the right time for change to have an online food delivery platform for your business. This blog will provide you with insightful information about how the on-demand food delivery app improves the food delivery business sales.
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It is challenging nowadays to operate traditional restaurants!
The food business is challenging nowadays as there is much competition in the industry. First, let us talk about common challenges faced by the traditional food business.
Reduced sales due to decrease in the number of customers
Amid the pandemic, it is difficult for customers to step out of their homes and visit restaurants to have food. Therefore, they prefer staying at home. This reduces the number of customers’ visits to restaurants, and as a result, the business becomes diminished with fewer sales.
Operating cost is high
High operational cost is one of the biggest challenges faced by restaurant owners. During this pandemic, many traditional restaurants were shut down as they do not have sufficient money to run the restaurant.
Difficult to get a loyal customer base
Food business requires a loyal customer base. This helps to boost the business and elevate sales. Sometimes, it is difficult to get a loyal customer base due to poor customer service. In the case of traditional restaurants, customer service plays a vital role as customers cannot tolerate poor service. So, they move on to some other restaurant.
Additionally, lack of enough staff in the restaurant impacts the customers. For instance, if the number of customers during the peak time is high in the restaurant, the lack of sufficient staff leads to improper management. In return, there is a high chance of losing the loyal customer base.
One more point is that if the hygiene is not maintained properly, it is very difficult to get a loyal customer base. The same customer will never return to your restaurant. Suppose the waiters are serving food without wearing gloves on their hands, this concerns customers more. The food quality might be not good enough or as they expected. Apart from that, the premises of the restaurant are not clean sometimes.
These are the common challenges faced by restaurant owners. Considering this, we can say a big thanks to the technology as it empowers you with an on-demand food delivery solution. It is high time to boost your food business with an online food delivery platform.
Popular business models of the on-demand food delivery app
In existence, there are three popular business models in the market. You have to choose the right business model that suits your business. Let me explain these three business models in detail.
Order only business model
The food delivery business bridges the gap between the customers and restaurant owners. To facilitate this, the on-demand food delivery platform comes into play. This business model will help the restaurants to reach a wider customer base hassle-free. JustEat and Grubhub follow this business model. Do you know how it works? Customers have to place their orders using the app. Upon order confirmation, the restaurant prepares the food and their delivery person will deliver the order to the customer.
Order and delivery business model
This business model deals with the restaurants, customers, and delivery executives. UberEats, Swiggy, Zomato, and other popular food delivery service providers follow this business model. There is no doubt that this business model requires more resources compared to the previous business model.
In this business model, the customers register with the app and place an order. Instead of preferring the app, they can even place an order via the website. Once they confirm the order, they have to choose either cash or digital payment modes. A delivery executive will be assigned to deliver the order. Upon delivery request confirmation from the delivery executive, he will deliver the order to the customer.
Fully integrated business model
This is an effective business model for new entrepreneurs. In this business model, the business owner has to take the whole responsibility. Like, the business owner can cook the food or hire a chef at convenience.
Why should you have an on-demand food delivery app for a food business?
Upon knowing the popular three business models, it is clear that the on-demand food delivery platforms help the customer to order the food hassle-free. Read on to know why you have to invest in the online food delivery platform.
Future scope of the Online food delivery platforms
Like we already mentioned, the Covid pandemic has impacted people’s lives in various ways. One such considerable thing is the food business. The demand for food delivery apps has increased significantly during this pandemic.
In these pandemic times, it is mandatory to follow the norms like social distancing. Considering this into account, the food delivery app facilitates contactless delivery. Doing this, the delivery executive will deliver the food outside the door of the customer. In return, you can gain more loyal customers and increase your business sales.
When it comes to the market analysis, there is an estimation that the net worth of the online food delivery segment will reach $1,82,327 million by 2024, according to Statista. Also, it is projected to show an average growth rate of 6.36% by 2024.
As this industry’s future scope seems to be good, you can dive into the sea of online food delivery business. For that, partner with a mobile app development company.
Online payment integration
Some prefer cash payment, whereas others prefer cashless payment. Therefore, incorporating various payment gateays is a better option nowadays. An on-demand food delivery solution facilitates the integration of various payment gateways. Contactless payments include debit card, NFC cards, POS systems, credit card, RFID, and much more. Upon completing the payment, you can offer auto-generated payment receipts. To win customer’s trust, you have to ensure that the payment transaction is safe and secure.
Hassle-free Order management
Approximately 10-15 years ago, customers had to travel to a particular restaurant or make a call to pick up their food. But, nowadays, they can place an order via the app and get it delivered within a stipulated time. Most customers prefer this way because it is very convenient.
Get analytics report from the app
The on-demand food delivery apps will allow you to know more about your potential customers. Also, you can know which food items are being ordered mostly by the customers. This information will be available in the Analytics report. Apart from that, you can get to know about the latest market trends. Analyzing this report will help you to know the customer preferences.
Hope this blog has shown that you can heighten your business sales with the on-demand food delivery app. If you are having an idea of starting an online food delivery platform, let us connect. We cater for you with a white label food delivery solution that empowers you to launch your food delivery app in the wink of an eye.