The rapid development of the mobile app market has changed the landscape in lots of industries for the better or worse. After all, some old-school sectors of the economy relied on traditional means of communication or older technologies, and mobile apps basically forced them to adapt. As for other industries, though experiencing a disruption, they gladly and quickly embraced the technology instead of being forced to do so.
This statement is especially applicable to the restaurant business on a global scale! Food delivery apps have changed everything from customer service to their expectations. Now we all know about UberEats and similar services that are highly popular. Custom delivery app market is also booming as restaurants want to differentiate themselves. Yet, there is more to learn about the impact of food delivery apps and how they have changed the game for restaurants.
Post Contents
Why food delivery apps are on the rise
Convenience
Let’s begin with the core — the reasons behind the popularity of these apps. First of all, they are highly convenient. Customers can just access an app through their smartphone, pick a restaurant, and choose meals. The process is simple as that. Combined with highly user-friendly UI/UX, food delivery apps just scream convenience from every possible angle. Thanks to the developers behind such well-finished apps who gained their knowledge and skills with the help of courses like the DevOps course in Hyderabad.
Control
The majority of these food delivery apps offer some sort of tracking system that allows a user to stay tuned to the location of a delivery person. This way, customers can see an approximate time that it takes the courier to reach their place and help out with directions, if needed.
Payment methods
When it comes to payment methods, food delivery apps can be described as highly flexible. Users can choose from a variety of cashless and remote payment options, which brings even more convenience than ever before. A customer can also stick to the classic cash payment option as food couriers accept it as well.
Large-scale events
Sometimes, things become popular not only due to their convenience but also because of necessity. This statement is especially true for food delivery apps and the whole global situation with COVID-19. A large number of countries have implemented strict quarantine rules and even total lockdowns to slow down the spread of this virus. These restrictions left people without access to things they would normally enjoy, and this is where food delivery apps come to the rescue.
The impact of food delivery apps on the restaurant industry
Just like everything else in this world, all trends have both positive and negative sides. This is also applicable to food delivery apps and how they influence the development of the restaurant business as a whole.
Positive sides
Exposure
Small restaurants are able to receive some additional exposure if they sign a contract with a food delivery company. Their assortment of meals will appear in the app, and its users will get to know more about the small restaurants in the area!
Expanded reach
Serving only in the physical location is quite limiting in terms of the maximum number of clients served. After all, your dining hall is your border. In most cases, such restaurants have a number of loyal visitors, which is kind of limiting. Food delivery apps allow a restaurant to expand its reach to a whole residence area thus potentially increasing the number of people served on a daily basis, which, in turn, translates into additional revenue generation!
No issues with logistics
If a restaurant wants to deliver to remote locations, there’s no need to look further than a contract with a food delivery service. These companies will provide their own couriers who will take care of the actual delivery! As a result, a restaurant is able to focus its resources on other important matters and leave logistics to the third party.
Negative sides
A need to readjust, possibly forever
The increasing popularity of food delivery apps is forcing restaurants to embrace this model. Coupled with the COVID-19 pandemic, the use of these apps is often the only chance to stay afloat, especially for smaller restaurants out there. It is hard to predict when the whole virus situation will end so who knows when and if small restaurants with limited budgets will be able to return to their established business models.
Significant losses
Food delivery apps are great but there’s some hidden truth behind them. Third-party services that deliver food instead of restaurants are charging them with considerable fees, which include commission, delivery, promotion, etc. While these fees are logical, food delivery companies are often abusing them because there’s just no other way for some restaurants to keep up their operations.
Potential reputation risks
A restaurant prepares a meal and gives it to the courier, who then delivers the order to the customer — a simple formula but it may pose some risks. After all, a client expects a warm and great-looking meal, but its ultimate state depends on the courier after the delivery has been picked up. If a courier messes up and the meal doesn’t look presentable or there are other issues, a restaurant may suffer from the damage to its reputation.
Owners’ dilemma: third-party app or custom delivery app development
This is a tricky question indeed. Third-party apps provide the convenience of the established logistics and large customer base. Big restaurants and chains can easily use third-party apps and negotiate lower fees just because of their scale. Even more, this greater scale allows them to serve more customers remotely thus effectively increasing profits.
On the other side, smaller restaurants aren’t usually able to negotiate better fees for themselves, and this can lead to considerable financial losses, especially during the pandemic. That is why, an alternative is to consider hiring a professional like the mobile app development company in Singapore. The creation of one’s custom food delivery app gives control over promotions as well as logistics while eliminating fees for any third parties. It’s also a great long-term solution and investment.
All-in-all, there’s no real answer to this dilemma as each and every company’s case is different. Everything depends on the internal and external factors that influence a particular restaurant. Therefore, it is imperative to consider both pros and cons of these two options to make the best business decision.