Online food delivery is a fast, convenient way to get your favorite meal without leaving home. But it’s not without its challenges, from restaurant management to last-mile logistics. Whether you’re a restaurateur looking to expand your food delivery services or just curious about how it all works, read on to learn about the latest trends and issues in online food ordering.
A major trend in online food delivery is the proliferation of third-party apps that offer to manage the entire process, from accepting orders, passing them on to partner restaurants for cooking and then delivering the order directly to customers. This type of business model has become the dominant force in the food delivery industry, with DoorDash, UberEats and Deliveroo leading the pack in the United States.
These third-party platforms are not only taking a cut of the profits from the food sales but also paying for kitchen staff and insulated hot bags to ensure that each delivered order arrives fresh and hot. This can put a strain on restaurants that have to pay for these extra expenses while limiting their margins, especially if the service fees imposed by the platforms are too high.
While this type of online food delivery business is booming, some traditional restaurants are questioning their participation in the space. Some of them are even retrenching their front-of-house staff and training them to handle deliveries, in an effort to save on costs.
This trend highlights the fact that while some consumers appreciate the convenience of online food delivery, it is reducing face-to-face dining interaction and social connections. In addition, it can lead to poor food handling and hygiene problems. These factors could turn away customers and impact brand loyalty.
As a result, it is important for restaurants to identify the best strategies to manage and maximize their online food delivery offerings. One of the most effective ways to do this is by adopting an online food ordering and delivery system that is compatible with their existing back-of-house workflows, such as Lightspeed’s suite of hospitality tools.
With this solution, restaurants can keep the profits and control over their delivery operations instead of relying on third-party companies with fluctuating commissions and increased fees year-over-year. In addition, they can retrain their existing employees to handle deliveries and make sure their food is handled properly while in transit. This will not only improve the customer experience but also increase brand loyalty and reduce customer attrition. In a rapidly changing industry, it is crucial for restaurants to adapt to their customer’s needs and expectations. Providing convenient and safe delivery services is the best way to ensure that they stay competitive in the online food delivery market.