The Future of Delivery: How Restaurant Owners Can Maximize their Future Profits
In the last few years, restaurants have seen a massive spike in revenue from delivery. Can restaurant owners expect this growth to continue? The answer is a resounding yes. In fact, delivery will be so important to restaurants’ business models in the next decade, that owners and operators who neglect this area of business may experience serious dips in their overall revenue.
According to the National Restaurant Association, industry growth projections indicate that restaurant dining will be heavily driven off-premise by 2030. Diners are prioritizing convenience so much that, in July, 77% of consumers in the US report having ordered food delivery, according to DoorDash.
One of the most significant shifts in recent years has been the growing importance of in-house delivery and online ordering. Third-party food delivery apps provide additional revenue for restaurants, but they come with high fees that cut into profit margins. The good news is that, although 66% of consumers report that they use food ordering apps monthly, more than half (56%) say they are likely or somewhat likely to order directly from a restaurant instead of a third-party app, depending on the user experience. Here are some ways the right tech can help.
Meet growing customer expectations in delivery
Customers expect more than just delicious food from their favorite restaurants—they want the ability to order meals quickly and easily, whether they are dining in, picking up, or ordering delivery. The ability for customers to see their order status and location, housed into one easy-to-use system, will be a factor that helps your business stand out from the competition.
To plan for this, restaurant technology must be able to handle multiple ordering channels (online, mobile, and phone) and a delivery management software must give customers maximum visibility. Streamlined online ordering allows for a quick turnaround from your kitchen to their doorstep, creating a smooth and consistent delivery experience that will keep customers coming back.
In-house food delivery vs third-party apps
When a restaurant handles its own delivery, it maintains full control over the entire process, from food preparation to customer handoff. With more control over orders, restaurant owners worry less about miscommunication with customers, incorrect orders, and late deliveries. In-house delivery and online ordering systems also streamline restaurant operations, making them more efficient and manageable.
This control is crucial for maintaining the quality and consistency of a guest's dining experience. You’re able to set and enforce your restaurant’s standards for delivery times, food presentation, and customer service. By managing delivery in-house, restaurants can ensure their brand and continued customer experience are meeting expectations every time. That being said, we encourage operators to invest in tech that will allow the ability to easily toggle between in-house and third-party delivery.
Guests demand more ordering options
The stats are clear–guests want ordering options. Current data trends on how consumers are choosing to order can shape your plans for the future. For example, when setting up your restaurant for future delivery growth, ask yourself these questions:
- Do you have a user-friendly online ordering system? 67% of consumers are at least sometimes deterred from using third-party apps because of the fees associated with using them (of which 35% are definitely deterred).
- Are all of your order channels (mobile, phone, website) consistent and easy to use?
- Does your food delivery system give customers visibility of where their order is? 23% say increased delivery tracking abilities factor into their ordering decisions.
- Are you offering great promotions and coupons? 51% say coupons and promotions heavily factor into where they are placing their orders.
You can better prepare your restaurant to meet the demands of your customers and maximize on delivery by addressing these questions. Embracing technology and optimizing your delivery operations will not only enhance the customer experience, but also drive growth and profitability in the long run. Plan for the future now and set your restaurant up for sustained success.
Choosing the right tech
Maximizing profits in the restaurant industry requires implementing the right technology to streamline operations and enhance customer experience. With an advanced POS system in place, restaurants can efficiently manage orders, inventory, and staff, reducing errors and lowering operational costs.
Integrating online ordering and delivery solutions boosts sales by tapping into the growing demand for convenience. Ultimately, the right tech stack not only improves efficiency, but also drives customer satisfaction and loyalty, leading to increased revenue and profitability.
Why?
In-house delivery and online ordering have become indispensable tools for restaurant owners. These services meet customer expectations for convenience and flexibility, enhance operational efficiency, build customer loyalty, expand market reach, and provide a safeguard against market fluctuations. As the restaurant industry continues to evolve, the ability to offer seamless online ordering and reliable delivery will be a key differentiator for successful establishments.
For restaurant owners, investing in a robust in-house delivery and online ordering system is not just a trend—it's a strategic business decision that can drive long-term growth and success. By embracing these technologies, restaurants can create a more connected and satisfying experience for their customers, ensuring they remain competitive in an ever-changing industry.About the Author
About the Author
Deepti Mendiratta has more than 20 years of experience in software development, product management, and client engagement, and works to connect restaurants with HungerRush’s cutting-edge technology and innovative restaurant management solutions.