In recent years, delivery apps have become increasingly popular among customers looking for the convenience of ordering food from their favorite restaurants without leaving their homes. However, for many restaurants, the rise of these apps has brought new challenges. In this blog post, we will discuss the impact of delivery apps on the restaurant business and how restaurants can navigate this challenging landscape.
The Rise of Delivery Apps
Delivery apps have become increasingly popular in recent years, with more and more people opting to order food online and have it delivered straight to their door. According to a recent report by business insider, the number of U.S. adults using food delivery apps is expected to reach 45.6 million by 2023. This represents a significant increase from 2018 when the number of users was estimated at 38 million.
Delivery service apps partner with local restaurants to offer their menu items for delivery. They usually charge a commission for each order, which can range from 15% to 30%. There are several models of delivery apps, including aggregator apps that partner with multiple restaurants to offer a wide range of dishes and direct delivery apps that are operated by individual restaurants.
Impact of Delivery Apps on the Restaurant Business:
- Boost Sales: Delivery apps have led to an increase in sales for many restaurants as they allow customers to place orders at any time and from anywhere. This can be especially beneficial for restaurants that may have traditionally struggled with slow periods.
- Increase Competition: With more and more restaurants joining delivery apps, competition has become fierce. Many restaurants have struggled to stand out among the thousands of options available to customers.
- High Commission Fees: One of the biggest challenges facing restaurants is the high commission fees charged by third-party delivery apps. These fees can range from 15-30% of the total order and can significantly impact a restaurant’s bottom line.
- Reduce Control: Restaurants have little control over how their food is prepared and delivered when using third-party apps. This can lead to customer complaints and negatively impact the restaurant’s reputation.
- Difficulty in Building Customer Loyalty: Delivery apps do not provide restaurants with the same opportunities to build customer loyalty as in-person dining. Restaurants may struggle to retain customers who only order through delivery apps.
Navigating the Challenges of Delivery Apps:
- Develop your own delivery service: Some restaurants have found success by developing their own delivery service, allowing them to avoid the high commission fees charged by third-party apps.
- Focus on quality: To stand out in a crowded marketplace, it’s important to focus on quality. Ensure that your food is prepared to the highest standards and delivered quickly.
- Utilize social media: Use social media to connect with customers and build a loyal following. Share pictures of your food, specials, and promotions to attract customers to your restaurant.
- Offer discounts: Offer discounts or loyalty programs for customers who order directly from your restaurant.
- Optimize for SEO: Use SEO-friendly keywords in the title, meta description, and headings of your restaurant’s website to improve its visibility on search engines.
- Use analytics: Use data and analytics to track customer behavior, identify trends, and make informed decisions about your restaurant’s menu and promotions.
- Prioritize customer service: Offer exceptional customer service to encourage repeat business and positive reviews.
Delivery apps have had a significant impact on the restaurant industry, but they have also brought new challenges. By developing their own delivery service, focusing on quality, utilizing social media, and offering discounts, restaurants can navigate these challenges and continue to thrive in today’s fast-paced world. Additionally, by implementing SEO-friendly techniques, using analytics, and prioritizing customer service, restaurants can increase their online visibility and attract more customers. Overall, while delivery apps have brought new challenges to the restaurant business, with the right strategies in place, restaurants can continue to grow and succeed.