With our lives constantly on the go, it's no surprise that restaurant companies have begun to capitalize on delivery services. Whether it be pizza delivery orders or pub takeout, restaurant owners can now optimize their business and cater to a wider customer base with new delivery service. Not only does this optimize how restaurants operate by giving them more control over their menu options and sales numbers, but it also changes the way sit-down dining works as well.
If you're thinking about adding a new delivery service to your restaurant business or just want to know more about the food delivery business, keep reading for some helpful tips.
Food delivery Service & the Restaurant market
Food delivery orders are the process of utilizing a delivery service to bring customers' orders of food items to their homes. Customers may place an order by telephone, online, or in person with the restaurant. With a food delivery app present in some restaurants, it opens more opportunities for customers who want to order take-out meals without having to go into the establishment.
The increase in sales is one of the biggest benefits for a food business company to expand into a delivery service. With more customers coming through the door, there are higher chances for increased profits with each order made from that customer's visit as well as future visits.
Restaurants that have a lot of customers can optimize their food delivery service and provide take-out items without being present in person. This not only saves the restaurant time and money but also a 20% increase in check sizes from online and delivery orders versus dine-in orders, this is according to market research.
With a higher profit margin, it can be beneficial for establishments especially for local restaurants to expand their small business by adding items to their delivery menu and hiring additional employees to do other tasks such as running the kitchen. It can also mean that they will get more food deliveries which are going to be profitable.
Restaurant business trends
In today's post-COVID recovery, the demand for food delivery businesses has increased due to people being under shelter-in-place orders and more companies offering delivery business services. In order to provide customers with these services, restaurants are either utilizing third-party delivery services for food delivery or creating their own online ordering systems.
Many restaurants have started adding delivery in order to capitalize on the growing demand. Implementing restaurant delivery services has a number of benefits including higher profits per customer, more efficient deliveries due to less staff required, and a wide range of dishes offered (with something for everyone).
It's no surprise that one of the best ways to find success in the restaurant industry is by offering take-out and delivery options. Take-outs are convenient, and efficient, and offer a variety of choices that can satisfy your current customer base - all while increasing profits. There's definitely a market for food delivery services, so if you're not already offering them, now is the time to start!
There are several technology platforms and app-based delivery companies that are making it easier for consumers to order and deliver food online. With just a few clicks, delicious meals can be delivered straight to their doors. This new trend is becoming increasingly popular and helps boost profits for restaurants by expanding their food delivery service options through a technology platform or food delivery app like Swiggy, Zomato, and Food Panda.
Revenue segmented from online food delivery alone was projected at more than $122 million in 2020 with an annual growth rate of 7.5% between now and 2024.
How restaurant delivery services are changing the food industry
The restaurant industry has had to change dramatically in order to stay ahead of the curve and compete with fast food chains. However, many small business restaurants have found ways to reach new customers outside of their location through take-outs, online food delivery service systems, and other techniques.
According to market research, in the last five years, over three hundred thousand businesses have launched food delivery services, which has become one of the fastest-growing industries in the United States. This demand is fueled by an increasing number of people who don't have time to dine out or don't want to leave their homes.
The economics of adding delivery business service can be a positive thing for restaurants in the long term because they receive better control over their delivery menu options and cater to a wider customer base. It may also be worth having an offer in place that encourages customers to come back, like 20% off their next order.
One of the most interesting aspects of food delivery service is that there are fewer risks associated with keeping extra inventory on hand, as orders may come at any time.
Additionally, food orders are often fulfilled within 24 hours which also eliminates some risk of spoilage or lost sales due to out-of-stock or over-stock products.
However, one downside is that it can be difficult to guarantee unique requests because restaurants don't have an average time to fulfill them and are limited by their menu options. Yet, this can be solved with a proper food and beverage inventory management app, such as WISK.
Experiencing food differently
Take-out food can open up new possibilities for customers, like trying something different or getting a favorite dish without having to leave the house. On the other hand, there are some things you can only get by dining in at a restaurant. For example, sitting down and sharing a meal with loved ones is an experience that cannot be duplicated with take-out.
Regardless, both choices have perks: one is the convenience of being able to order what you want without having to go into the restaurant while on the other hand, there is the social aspect of sitting down and talking with loved ones over a meal. Both are enjoyable experiences.
People like the convenience of being able to order what they want without having to go into a restaurant and wait for their food to be ready. Most also like the fact that they can order take-out and have their food delivered without any hassle. Customers also like the variety of dishes that are on a restaurant's menu and prefer to order food in person in order to customize their orders.
Take-out restaurants are also great because they make sure you don't end up with leftovers in the fridge going bad from too many days of storing them past their prime or spending time figuring out what's for dinner.
Most importantly, restaurant delivery services optimize the food experience and offer opportunities to cater to a wider customer base by providing them with take-out options.
How to do restaurant delivery properly
How to determine if delivery is right for your restaurant? Many small business owners wonder if adding delivery service is right for their establishment. Here are some helpful tips to make that decision.
1) Your venue
Venues with a lot of foot traffic may want to consider having a food delivery service because it's easier for customers to be able to order what they want without being in the restaurant.
Venues that are more high-end may not have as many people ordering take-out or delivery, but will still benefit from catering to larger groups and having a variety of menu options available for guests who are dining onsite.
2) Your customers
There are a wide variety of customers in a restaurant, depending on the type of restaurant. Customers' preferences are an important factor when deciding what type of restaurant delivery service to offer.
For instance, a fast food style eatery will have most people looking for an inexpensive meal and quick service. A more formal, high-end restaurant will have customers looking for quality and experience.
Low-cost eateries will need to make sure orders come quickly otherwise it might not be worth offering this service due to the time and effort required for preparation being less significant when delivering low-cost meals such as tacos or pizza.
The economics of food delivery may be more beneficial for high-end restaurants that are catering to larger groups or have a variety of menu options available because they are able to charge higher prices for those dishes.
For example, some repeat customers like the convenience of ordering and receiving their food without waiting in line. Others prefer to wait for their take-out order, however, receive better packaging and presentation of their food instead.
One of the most common reasons for customer complaints is service. This doesn't just mean that they received poor service when ordering in person, but also while they were on the phone or interacting with your website or app. This could be caused by an employee being rude and impatient; a delivery staff forgetting to bring something or being too slow to respond to their order.
Whatever the case may be, you need to investigate these types of incidents immediately and find a way to resolve the conflict.
If it's clear that the customer is not satisfied, there are several ways for restaurant staff members and any company representative to handle this situation to fulfill deliveries. For example, if you see from the food tracking app that they're still waiting for their food after 45 minutes, you can offer a free dessert or appetizer as an apology.
It's also important to note that customers want your restaurant to be a place where they can feel comfortable and are taken care of. Therefore, it should always have the same level of customer service regardless if they're inside the restaurant or order from home with food delivery services.
3) Your location
The location of a restaurant is critical. The method in which meals are cooked, packed, and delivered is determined by where a restaurant is located. For many businesses, having a lot of foot traffic can be both good and bad. While more potential new customers are exposed to the restaurant location, it may become difficult to handle customer demands--especially when offering delivery service.
With the advent of food delivery apps, both average consumers and business people are demanding faster service from their favorite eateries. The longest a customer should wait for their take-out order is 30 minutes. A smaller staff on hand that can prep meals and deliver them when required or utilize different delivery systems might help you achieve this goal. When a restaurant is located in a high-traffic area, they face the dual challenge of catering to those diners who want to eat in as well as those who ordered take-out/delivery.
Many small business restaurants want the ability to do online ordering in order to maximize revenue via multiple channels, but high-traffic areas can be difficult to handle when offering delivery. Some customers may not have access to an option that delivers due to location limitations. And sometimes customers are spread out all over the city or state, making it difficult for restaurants to choose whether or not to deliver their food.
In cases like these, it is usually best if your restaurant offers pick-up orders or specifies a delivery area for those who live geographically further from the restaurant or are outside of the delivery radius. This works when people are willing to drive out of their way and usually provides an incentive for shorter wait times.
4. Improve customer experience
Something that could help you stand out from others in your restaurant business is offering delivery services to attract not only customers near you but also those further away or who might become regulars. In cities especially, where potential customers could not have access to a car and are unable to get around easily, this becomes even more important.
Remember, having food delivered to customers is a whole new way to order, experience, and enjoy food. In a general sense, it's hard to imagine the restaurant industry without delivery options. As a result, the worst thing you can do is treat delivery as an add-on to your existing business. Next to food quality, providing a high-quality brand experience should be at the heart of your delivery operation.
Not to mention, since restaurant food delivery services are more flexible for dietary restrictions and people who can't leave their homes, many businesses that offer these types of service options generally receive higher customer satisfaction ratings.
Furthermore, takeout ordering offers a wider range of options, making it simple for consumers who desire various dishes without having to worry about what choices will be available when they enter the restaurant, as well as catering to bigger gatherings that may prefer to host a party elsewhere.
People can also prepay ahead of time by learning what items they want before going in or phoning in, which reduces a lot of stress while dining in with other customers waiting.
5. More efficient time management
Efficient time management is key to modern restaurant operations- especially when it comes to fielding phone calls and customers in person. Many restaurants have found it difficult to keep up with the number of people who want take-outs or delivery services on a daily basis. That's why take-out and online ordering is an options to consider.
With an online order system, customers can place the order while waiting and it will be ready for pick-up or delivery much quicker than any customer waiting at the table. This is especially helpful when ordering a meal that doesn't take too long to prepare and offers customers the ability to decide if they want their food delivered, picked up in person, or eaten nearby.
With take-out orders, the employee has the full order all in one go, therefore catering to a customer's order is easy, since the only task left is to prepare the order on time.
On the flip side, customers waiting at tables can place a new order whenever and don't expect to wait as long as people ordering out.