On-Demand Applications such as Netflix, Uber and Amazon Prime were the star characters before COVID-19 approaching the world, including online food delivery applications which made life easier and convenient for the customers.

Post COVID-19, the need for on-demand food delivery services has taken a toll on the need of the hour which has led to ample companies jumping towards making online food delivery available for the customers.

Take out and dine in options have surely been leading the way with restaurants opening up, although the customers will always opt for safer dining options, all in all, it is a risk worth taking because there will always be people willing to order food online. 

Since the past few years, on-demand food delivery businesses have accelerated with constant revenue generation and an aggressive flow of profit generation due to lack of enough capacities in the restaurants.

The State of Full Service Report that was issued this year mentioned that the ordering takeouts in America have risen from 19% in February to 22% in March and April, which suggested that there has been a lot of traffic for the delivery app drivers and a vast pool of work.

On an average, ever since the pandemic has taken place, the restaurants have all over increased their revenue generation and profit making from 11% to about 20%, although, the world has started to recover, the online food business is still at the boom.

Ghost Restaurants Have Risen

The online food delivery industry has been proved to be highly influential in the restaurant industry, which has led to the introduction of a whole new category of restaurants i.e. Ghost Restaurants.

Their restaurants only have the facilities of delivering food, and does not give an option of dine-in or takeout, these restaurants work professionally focusing on the authenticity and quality of food and experience.

Since the operational costs for these restaurants get reduced, the food gets delivered at a lower cost than usual high-end fully functional restaurants. 

These restaurants also remove the process of managing a whole restaurant unit, and instead only have to take care of the kitchen.

The areas that help in reducing the operational costs for these restaurants are:

• Rent

• Labor – Waiters, Managers, Front Desk Staff, Cleaners.

• Space and Decor – Furniture, Interior, etc.

A prediction has been made that these ghost restaurants will grow over time in every part of the world, to make sure that the demands of the customers are met and at the same time the business model is maintained to be more sustainable.

Let’s Pitch In And Discover The Pros Of Offering Food Delivery Services Online

1. Increased Check Sizes

Since the COVID-19 has approached, there has been almost a raise of 20% in the check sizes at the restaurants who have shifted from dine-in services to online delivery services amidst the pandemic.

2. Make Up For Reduced Foot Traffic

Since the process of unlocking has started in the majority part of the world, with everything reopening, restaurants and eateries seem to be facing a lot of troubles with the restrictions and the social distancing policies.

These delivery services have provided a hand in the income of the restaurants and making up for the loss that has been incurred due to fewer people coming in for the dine-in.

3. More Business Opportunities

Customers are willing to order food while sitting at the comfort of their houses, and thus by providing delivery services, these restaurant owners can reach out to a wider range of customers who are willing to order food online.

This way, it widens the business opportunities for the owners and helps them incur more profit.

4. Less Overhead

With swapping your business model to a ghost restaurant, the labour cost and the infrastructural cost can be reduced making it easier for the owners to maintain the finance.

Space can also be downsized, that way the cost of the rent can be saved and spent on expanding the delivery services of the restaurant.

5. Exposure To New Customers

There has been a lot of awakening among the urban population, and thus the restaurants who have been operating at a lower capacity can deliver food online, beyond their regular and local areas.

They can expand their horizons by providing specialized services to the customers who are willing to buy the orders.

Basic factors need to be considered while deciding whether an online food delivery system should be established

1. Venue Type

The restaurants have been reframing their business modules, from shifting from dine-in services to takeout and delivery services, providing a sense of security to the customers and at the same time raising their business. 

Deciding a venue for the restaurant can be a tough call considering all the factors such as the locality, the targeted audience, and the demand for the cuisine in the area.

2. Customers

With the times revolutionizing, the millennial generation is more inclined towards online delivery instead of dine-in, because it provides them with the comfort zone. 

Whether watching a movie or playing online games with your family, these applications serve you with food right at your doorsteps.

Thus, choose your audience wisely before designing your service module and application in order to make the best out of it.

3. Technological Advancements And Marketing Strategies

The mobile application should be serving the purpose of providing comfort to the users, with an extremely flawless interface and an overwhelming experience of providing a vast range of options of restaurants to choose from.

Also, the owners and developers have to come up with ideas that binge on the minds of the customers, such as discount coupons, special offers, etc.

Thus, smart marketing of your product with the right technology can take you a long way.

4. Infrastructural And Labour Cost

Before getting your hands on any kind of a market segment, examining the financial balance is extremely important considering the fact that if your online food delivery services are not as efficient as the dine-in services, it is not a right decision to go for it.

Also, the revenue generation model of both of them has to be compared, and the one which is vastly inclined towards profitability should be opted.

Perhaps, building the right team requires picking the right people with the required skill-set, because quality always matters over quantity. 

Lay On With The Experts And Let Your Online Food Delivery Business Make Wonders

We provide a solution based module for your online food delivery services, keeping in mind all the prerequisites required to excel in the food delivery business.

We have an expertise in providing an MVP for your food delivery mobile application in the time span of 15 days, which will be the first step towards your successful business plan.