How Can A Food Delivery App Save Your Restaurant Business Amid COVID
How Can A Food Delivery App Save Your Restaurant Business Amid COVID
The COVID-19 pandemic and the successive waves of the viral outbreak have had a staggering impact across major industries, especially for the ones involved in the restaurant and food business. In the initial months of the pandemic, with social distancing and then lockdown being imposed, dining at restaurants was banned. One could serve only serve the customers through takeaway and food delivery, which was difficult for establishments that did not function in that manner. As a result, many restaurants were completely shut down. Gradually business owners began adapting to the situation, starting with investing in food delivery app solutions.
While some consulted with food delivery app developers, building an infrastructure that would allow their customers to order the food online and get it delivered at their doorstep; others collaborated with food delivery companies in an attempt to survive the pandemic. What was primarily a fast fix for businesses to survive the lockdown of COVID-19 has become a revolutionary business strategy within the restaurant industry to expand service and customer reach.
Restaurant and food business owners are heavily investing in in-app and website development that would allow them to serve the customers, and keep their business afloat even with lockdowns and ban-on-dining. But is it effective? Would the investment generate significant ROI beyond the pandemic? Let’s explore!
COVID Impact on Restaurant & Food Businesses:
According to a report published by a leading business magazine, in the US alone the pandemic caused the closure of more than 90,000 restaurants, rendering 5.9 million people jobless. Similar stats surfaced in other countries as well. In India, the restaurant industry shrank by 53% amid consecutive COVID waves, as per the NRAI report.
The COVID has not just impacted the restaurant industry globally, but the customer mindset as well. As per a recent survey, almost a quarter of the American population has stopped dining at restaurants.
Statista claims a sharp decline in year-over-year dining trends globally, with a -18 percent recorded in the last quarter of 2021.
Even with such alarming data, the global market for the restaurant industry is estimated to reach a $1.7 trillion market size by 2027 from $1.2 trillion in 2020, at a 4.7% CAGR. So, the question remains; how are these businesses surviving, and not just making ends meet but generating profits amid these trying times?
Increase in Use of Food Delivery Apps:
As per industry experts, major credit for the survival of the restaurant industry goes to food delivery app solutions. When the COVID hit us initially and everything went into lockdown, the restaurants might have been barred from continuing their dining service, but businesses were allowed to deliver food to the customers while adhering to the pandemic safety and hygiene protocols.
So, while a significant percentage of the restaurants went under, others stayed afloat owing to their quick switch to the COVID-induced new normal norms. Since 2020, there has been a substantial rise in both the use and development of food delivery apps.
Some restaurants are opting to consult with a food delivery app company to deploy a mobile app while others are partnering with food delivery companies like UberEats with an existing infrastructure of order and home delivery through a website or application.
According to Statista, the global online food delivery industry had a market share of $107.44 billion in 2019. It is projected to surpass $154 billion by 2023. As of 2021, the industry boasts a market share of $126.91 billion with a 10.3% CAGR. The data clearly shows the continued rise in popularity of online food delivery services and customers’ preference in using the same.
Benefits of Building Your Own Food Delivery App:
When taking your restaurant business online, there are two options in front of you.
- Firstly, you can launch your very own on-demand food delivery app.
- Secondly, you can partner with a third-party food delivery app like UberEats.
Now, the question is which is good for you? Frankly speaking, you can opt for either. Having said that; getting a dedicated app development company to build a food delivery app or a professional website has its own perks. Let’s find out the benefits.
- Investing in a food delivery app might cost you more, but it is a one-time investment that would generate scalable profits for the business.
- It has the potential to generate a greater ROI compared to partnering with a third-party online food delivery service.
- When you develop an app for your business you have the independence to play by your own rules; it allows you to make changes in the presentation of the food menu, the delivery service, promotional and marketing features, etc.
- You can operate your restaurant and food business as per your business plan and policies, without having to abide by the uniform rules set by a third-party service provider.
- Last but not the least; when you have your very own app, it acts as a trust builder when reaching out to broader demography of customers. You can even include in-app features to directly engage and communicate with the customers.
Something is always better than nothing. If you are contemplating the launch of an app then collaborating with a third-party service works as well. However, owing to the surge in demand for food delivery app development, there are companies that can offer you the service at competitive rates; you just have to consult with the right developers. If you want to build an app from a dedicated app development company then hire someone who can provide free life time support for your app, just like we do.
A Quick Look at the Standard Food Delivery Applications:
On a concluding note, here’s a quick review of the standard food delivery app features that can help boost your business:
- Menu Display: Separate menu section with name, picture, and price of the dishes for the customers to browse and order.
- Easy Ordering: Features to seamlessly add dishes to the cart enter the delivery address and complete payment.
- Track the Order: Real-time tracking of the order status from placing the order to delivery to the customer’s doorstep.
- Easy Payments: Multiple payment options with a secure payment gateway for secured processing.
- Review Posting: Allow the customers to rate and review the dishes and the food delivery experience.
- Order History & Status: A separate section with details on the present and previous orders.
- Details on Delivery Personnel: Details like contact information, customer ratings, and likewise about the delivery personnel assigned to respective orders.
- In-App Chat & Call Options: In-app support to customers to simplify their food delivery experience.
- Push Notifications: Notify the registered customers about food promotions and special offers.
- Sales & Analytics: Enable the business owner to track the weekly, monthly, and quarterly sales through smart analytics features.
- Admin Panel: A user-friendly admin panel for managing app features and generating regular reports.
These are the standard features, which a business can customize as per its target audience and other specific requirements.
Hope this blog was insightful for you. If your restaurant business is struggling to mitigate the setbacks of the pandemic, investing in food delivery app development might just be the solution you had been seeking all along. It allows you to serve your customers and make profits even in lockdown situations. Since people prefer ordering food online rather than going out these days, it opens up a wide avenue in front of you to generate consistent revenue.
The best part of having an app is that it helps you engage better with your customers and extend the reach of your service. Remember, building an app is a one-time investment that would generate long-term ROI propelling the growth of your restaurant business. For more information on the same you can consult our experts for food delivery app development.