Are you among the many restaurant owners who plan to take their delivery business online but fail to execute it? Do not worry, the market for food delivery services is still in its growing phase, and you can regain your sales in a flash. One major dilemma that most entrepreneurs encounter is whether to have an independent delivery outlet or sign up with third-party delivery platforms. Most owners inevitably prefer the latter because it takes very less investment to do so.
But do you know you are losing a minimum of 20% of your payment as a fee to an aggregator? Developing an app and signing up with third-party platforms have their pros and cons. It is the restaurant owner who is solely responsible for finding out what suits the best for the business based on the resources. Be it an UberEats Clone or a GloriaFood alternative, making decisions based on your resources is vital. In this blog, let’s look at the pros and cons of both a separate app and a third-party platform.
An individual app for food delivery
To better manage your services, and get in touch with potential customers more efficiently, you may need a specific app to extend your food delivery service.
The growing demand for restaurant-specific delivery apps
Let’s glance at the supporting stats that prove the increasing demand for online food delivery platforms for restaurants.
• Almost 86% of US consumers use delivery services at least once a month. Even the numbers for taxi services are below this value. (Source: GloriaFood)
• Orders placed through an online ordering platform generate an increase in revenue of $4 when compared to those from the restaurants. (Source: Nation’s Restaurant News)
• Almost 75% of the millennials prefer delivery services due to enhanced convenience. (Source: A study by the National Restaurant Association)
Watch out for the pioneers in this field
• Domino’s Pizza: Arguably, one of the pioneers of restaurant-specific apps, Domino’s Pizza, has a specific fan following worldwide. By integrating unique features, the application has managed to retain its place in its customers’ smartphones. With trending features like in-app tracking, customer support through chat/call, chatbot for food ordering, etc., the platform is set to enjoy enhanced profits for years to come.
• Jimmy John’s: When you think of sandwiches, this name Jimmy John’s will inevitably strike your mind. Such is the impact created by this restaurant. To reach out to a wide range of the audience, the platform has an in-house delivery team for instant deliveries. Besides, the app offers food orders for free if the delivery executives fail to drop off the orders at customers’ doorsteps within the stipulated time.
The restaurant-specific app has its own advantages
Restaurant owners can enjoy potential benefits if they have a smartphone application for their food delivery business. Some of the advantages include,
• Increase in profits: Restaurants can supplement their dine-in sales with a delivery business of their own. An increase in revenue is always acceptable, isn’t it?
• Better inventory management: By having a dedicated app for food delivery services, restaurant owners get quality insights from time-to-time, helping them make informed decisions. Besides, managing the inventory is a piece of cake through an online platform.
• Reaching out to customers: With people shifting towards the digital medium at an alarming pace, the time is ripe for restaurants to adapt to the dynamic environment. Through the app, the restaurants can retain their potential customers, leading to stability in sales.
Have an eye on these cons as well
Managing the cons depends on the hands of the restaurant owners. Some of the disadvantages that restaurants experience include,
• Maintaining control is tricky: It is quite challenging to manage online deliveries and dine-ins simultaneously. Managing the system efficiently during peak hours becomes a matter of concern.
• A delivery chain can incur expenses: You need a separate delivery chain that must be available to deliver food orders in a flash. While having a delivery chain add to your monthly expenditure, you cannot promise 100% instant deliveries every time.
Joining hands with a third-party platform
One of the most preferred ways of taking your business online is through third-party platforms. Let’s take a look at the market growth in numbers here,
• Almost 31% of US consumers use third-party services at least twice a week. (Souce: Mintel)
• Third-party delivery services have enhanced the sales of restaurants by 10-20%. (Source: Nation’s Restaurant News)
• Ever since the Coronavirus lockdown, Grubhub has joined hands with more than 20,000 restaurants in March alone. (Source: Reuters)
The trio that revolutionized the food delivery services market
When talking about third-party food delivery services, you cannot ignore the contribution of UberEats, DoorDash, and Grubhub. Let’s take a peep into the market share of these pioneers.
• DoorDash: This food delivery platform occupies 20% of the total US online food delivery segment, extending its services to over 1200 cities and 110,000 restaurants. The platform is known for its personalized suggestions, leading to enhanced customer satisfaction.
• UberEats: The platform occupies 26% of the US online food delivery segment, operating in over 1000 cities worldwide. Easy navigation and attractive UI/UX are trademarks of the platform, attracting more audience towards it.
• Grubhub: According to the current scenario, Grubhub has 125,000 restaurants spread across 2400 cities under its belt. The platform occupies nearly 33% of the US online food delivery segment, making it the most reliable food delivery app.
Lucrative benefits of signing up with a third-party platform
Most of the restaurants enjoy signing up with third-party platforms due to these advantages.
• Widening the customer base: By signing up with third-party platforms, restaurants can enhance their visibility to a potentially large set of audience. An increase in visibility will inevitably lead to improved sales at the end of the day.
• Less investment: It is quite tedious to develop and maintain a separate app. Besides, developing an app involves high investments that most restaurant owners hesitate about. With just a few taps, they can enable an online presence.
• Eliminating delivery chain: Most of the popular food delivery platforms deploy their delivery chain. This way, restaurants needn’t worry about spending on delivery executives.
In noticing the drawbacks lies the key to success
Some of the disadvantages of third-party platforms include,
• Restaurants give up a part of their payment as a commission fee for every food order. This can affect their revenue substantially.
• An error made by the platform’s delivery chain can lead to a bad impression on the restaurants.
• A decline in brand loyalty is experienced as restaurants do not come in direct contact with the customers.
Nowadays, app development companies are rolling out UberEats clone app solutions that can be modified either as a single restaurant app or a third-party food delivery platform. Entrepreneurs and restaurant owners can capitalize on this situation and choose a food delivery app based on their resources. Either way, you can reach out to a wider audience if you take your business online. Get in touch with an expert app development company, tell your needs, and launch your food delivery platform right away!