The fast-growing mobile penetration rate and its ease of use have promoted the adoption of mobile technology innovation by enterprises. The food industry is no exception. In order to stay ahead of the competition and gain greater market share, food stores are using restaurant finder or food delivery applications.
Starbucks despite having many physical stores get $1.6 billion of a $10 billion revenue from a mobile app. That’s a huge figure!
This is all because online food deliveries are in demand among users for its convenience.
As per a recent survey of 27,000 respondents, 81% of customers reported that they ordered food from a restaurant or any eatery using an app for convenience. On the other side, 92% use the mobile web to order food.
Huge market giants like UberEats, Postmates who have emerged in food ordering industry and are finding huge success is due to the adoption of the online food ordering system.
A mobile app for your restaurant lets you build an online presence, deliver your products, and get closer to your far-located customer.
If you are a restaurant owner who is constantly trying to ‘level-up’ your business in this sector, then you need to be technologically equipped.
Table of Contents
To support why Restaurants should invest in an On-Demand mobile app, we have curated 10 Reasons mentioned in this post:
But first, let’s quickly check the statistics of the market size of the food delivery business.
Let’s get started with the market figures:
● According to Statista, Revenue in the Online Food-Delivery segment amounts to US$122,739m in 2020.
● Revenue is expected to show an annual growth rate of 7.5%, resulting in a market volume of US$164,002m by 2024.
● The market’s largest segment is Platform-to-Consumer Delivery with a market volume of US$62,798m in 2020.
● Digital restaurants orders are going to triple by 2021.
● According to surveys done by LocalCircles, 81% of Indian consumers order food through delivery apps due to convenience.
● In the case of the United States according, the online food ordering market has increased in the U.S with 40 per cent of U.S adults have ordered their food online once.
The data clearly shows how vast the industry is and how fast it is growing. The convenience of online food delivery, online discounts offered by restaurants, and the availability of the wide range of restaurants and options of foods, actually increasing the demand for online food delivery and ordering business with each passing year. So the question arises how it will help you to grow your business and your customers to get closer to you.
10 Reasons Restaurants need a Food Delivery app
We have divided the reasons for Food Delivery App Development in:
What does it bring for you?
What does it bring to your customers?
What does it bring for you?
1. Better Market Coverage
One of the prime reasons your restaurant needs an app is for better reach. The app reaches a larger audience who are located locally or distant. An app is a great medium to improve localization and enhance conversions. It breaks the boundaries and reaches the audience who were not aware of your restaurant. The app uses Geolocation to deliver food to local residences.
2. Competition Ready
“A happy customer is a returning customer” – We all know this. But in this immense competition where each Restaurant is increasingly working on improving the services to offer a rich experience to buyers; What added advantage you can offer to win the customers?
Here, the app comes to light. As we have mentioned above, a mobile app gives power to users to order food in a few taps on a mobile app at the convenience of home. Offering convenience to your customers will not only keep you ahead of the competition but will also help in building customer loyalty to your brand.
3. Real-time Insights
Apps is a great tool to provide you with real-time data of the users. The Real-time analytics gets you key insights like what time you get maximum orders, which food they order most, what payment options and more. Real-time interaction with customers gives you a better way to understand your customer behaviour, interest and interactions with the app. Thus, It helps you plan your marketing campaigns to get maximise conversions.
You can make use of push notifications to communicate your marketing offers and discounts to drive sales.
4. Online feedbacks
Feedbacks are the best ways to promote yourself to the people who have not tried your services yet. As people order by looking at the reviews given by other customers, you can send push notifications to satisfied customers to write a review or give you ratings on the app or on the app store. Reviews and ratings on sites for your services will drive you more business.
5. Better Services
By incorporating reviews and ratings in your app, you understand customers opinion on your services. Unlike Middlemen in a channel, An app is a medium that lets you directly connect with your audience and understand what they want and how you can serve what they want.
6. Better promotions
By having a large customer base online and good visibility, your app will speak of your services online. Let’s think of what promotions you do to build your brand awareness? You take your customers reviews, ask your customers to tell their friends and family about your restaurants, Promote it via banners and ads to improve visibility. RIght? A mobile app does all these for you at less cost. A mobile takes customers reviews, allow social sharing, send notifications on offers and get visibility through paid ads on search engines and social sites. An App builds your digital presence to a wider audience and build relationships with loyal customers. Hence, an app is a great tool for services promotions.
7. Increased Returning Visitors
Being an owner of the food delivery business, if you want to retain your customers for a long time, then you constantly focus on options that make your customers stick to your services. By developing an app along with unique features and functionalities, you offer enhanced experiences to drive your visitors back to you.
As mentioned earlier also, App allows you to send notifications to customers on new offers, coupons and discounts that not only keep your users updated but also drive them to place an order. App has the highest retention rate over any other mediums.
What does it bring for your customer?
1. Convenience of buying
With more and more advancement in tech, the only thing we are trying to offer is a comfort to people. To offer maximum by doing a Lil. A mobile app offers convenience to customers to search, compare and buy anything at the comfort of their home rather than conducting the whole task manually.
Mobile apps make it easier to fulfil orders. Instead of having a person constantly call the reception and rely on the person to accurately address your order between the line interruptions, mobile apps accurately saves the order along with special requirements of the customers and show it on your dashboard. Customers get exactly what they want.
2. Sense of Surety
Customers have a sense of surety that they are ordering from the right place when they can see positive reviews from different customers around the place. An app is a medium which acts as a word of mouth, that make your existing customers tell people about your services via ratings and reviews. It removes any promotional biases and communicates truth to the users. As you try to improve your services to avoid negative reviews, the customers get the best experiences from you.
3. Offer Personalised Experiences
The process of restaurant app development considers app user flows and fetches and saves personal information of users to offer personalised experiences. Mobile App through machine learning understands user activities on the app and shows only options and offers which interest him. Personalised app experiences not only benefit customers but also restaurants to engage users and improve customer retention rate.
Even if you feel that only Top Food Outlets can have an app and can get sales from it, It has immense for your business too. If you do decide to develop one, you’ve got the potential to drive 10% of customers in your area. The reason we think is only a handful of restaurants have their apps. If you partner with a big food delivery chain, you pay a commission for it. Plus, some restraints in promoting your product. Your own restaurant app gives you the freedom to deliver and save budget.