- The online food ordering and takeaway market have just started to explode across the globe.
- Today's customers are all about convenience.
- More than 72% of customers use Facebook to make restaurant-related decisions.
Digital ordering, online payment, social media, etc. are no longer a buzzword as more and more industries harnessing the power of these modern technologies to upscale their business, and the restaurant industry is not immune from this. Earlier, running a restaurant business meant chefs cooking food on one side and people eating another side, but now technology has transformed everything.
If you are engaged with the restaurant industry and fail to embrace emerging tech solutions within your restaurant, you might lose a huge chunk of revenue and sales. For instance, according to the survey conducted by National Restaurant Association, more than 83% of restaurants have already implemented POS systems to keep track of their transactions while more than 40% of restaurants now offering online ordering. So as you can see, technology is revamping the restaurant industry rapidly.
Online Ordering is Here to Stay
Online food ordering has come a long way. Only in the span of five years, we have witnessed its massive growth and, more importantly, fast adoption by the customers. Moreover, unique innovations and modern technology solutions have encouraged business owners to implement modern solutions to their restaurant business. Restaurants and food retailers have become more accessible to people today.
The online food ordering and takeaway market have just started to explode across the globe. With the increasing usage of smartphones and faster internet availability, people have got glued to order food online. Moreover, a busy and fast-paced lifestyle influences people to order food online. On the other hand, restaurants are opening other revenue streams for their business by enabling people to order and deliver food online.
In the above snape you can see free doorstep delivery, discounts, offers, a wide range of options, etc., are the reasons that encourage people to order food online. Some of the major factors driving the immense growth of this industry include:
- Hectic work schedules and traffic is making it challenging for millennials to visit restaurants
- Third-party websites like Zomato, Deliveroo, UberEats, GrubHub, etc. are making it easy for people to place and track the order online
Revenue in the online food ordering segment is expected to grow at 7.5% yearly by 2024.
The restaurant industry has gone through drastic changes over recent years. In this article, we will discuss the growing online food ordering market in detail and how it changes the restaurant business’s landscape.
The Evolution of Online Food Delivery Industry
In this era of digitalization booming all over the world, the online food ordering trend is sprouted up with each passing day. The trend is coming up with many innovations and fulfilling consumers’ demands, offering them convenience and satisfaction. Many new players are also joining the segment and looking for uber eats type app development solutions for their business to stay ahead in the competitive curve.
Today’s customers are all about convenience. When it comes to ordering food online, Zomato, UberEats, JustEat, GrubHub are the few names that cross our minds. All these platforms are popular in their regions and gradually extending their services across the globe. Moreover, modern tech tools such as Machine learning and Artificial Intelligence help restaurant owners enhance the service offerings of the entire industry.
ML and AI enable accuracy in anticipating results, from order accuracy to smart route planning to minimize errors; these technologies enhance customer service and help restaurants to make informed decisions.
By fusing these latest technologies, online ordering apps today help customers choose their favorite dish from smart recommendations. It also helps them find a new restaurant and also stay connected with consumers until the order gets delivered. Later, based on the user’s preferences and behavior, restaurants can send them personalized notifications to accelerate sales and customer -retention rates.
Online Food Delivery Is Growing Rapidly
The online food delivery market has skyrocketed in the year 2020- credit goes to technology innovations and the global pandemic.
Yes, due to the pandemic, people’s inclination towards digital food ordering is growing. For restaurant owners looking to upscale their business operations and foster customer loyalty are now offering online food ordering service to their customers as it prevents virus spread and increases revenue in a short span of time. However, it’s not easy, but most restaurant owners today rely on digital solutions to reach their customers.
Small and medium scale restaurants are also opening dark kitchens in urban locations to reach customers more quickly and offering options like pickup, home delivery, and much more.
Above is a snapshot of key players in the online food ordering market and shows it’s proliferating worldwide. It is projected that the food delivery market will grow over 630% by 2021; there are endless possibilities for restaurant owners to shift their business online and stay afloat during this competitive time.
However, this market will continue to flourish in the coming years. Customers are demanding more convenience and control over how and when they order food, and restaurant owners are bound to want business growth at a rapid pace.
Change in Consumer’s Preferences
The market share of Zomato, GrubHub, DoorDash, JustEat, and other similar companies is growing because customer’s preferences keep evolving with time. Due to Corona Pandemic, the stay-at-home economy has been growing, and the inclination towards online food ordering increasing.
The changing preferences have also contributed to the immense growth of online food ordering and delivery. People are now doing everything online, including food, as it offers convenience and saves time. These days, people want their favorite cuisine at their doorstep, and advanced technology helps them save time and vitality for a human.
There are several reasons why people like online food ordering,
- It saves time and cost
- Wide range of options
- Online food delivery apps offer multiple payment options
- Attractive deals and offers
- More and more people started ordering food online since it offers simplicity and transparency.
As we have noticed, consumer behavior keeps changing with time; restaurant business owners are transforming their existing business models in multiple ways. Besides, restaurants that lack technology adoption and online presence are losing lots of money and potential customers on the table.
Furthermore, several restaurants are implementing dark kitchen or virtual kitchen concepts as it allows them to rescue overhead costs. Customers are finding it extremely easy to place an order online using an app or website and get it delivered at their doorsteps in the least possible time.
Social Media Changing the Face of Restaurant Industry
Social media platforms such as Facebook, Instagram, Twitter have become driving forces in the restaurant industry. A recent study conducted by New York Times revealed that more than 72% of customers use Facebook to make restaurant-related decisions. Well, the restaurant industry is taking advantage of this and leveraging social media as the secret marketing weapon. There are many benefits of using social media for your restaurant business,
- Expand customer base
- Promote trust and foster loyalty
- Drive website traffic
- Social media creates an “Experience”
Digital Solutions Driving the Business Growth
From the above enticing facts and figures, we can say that modern technology solutions will continue to apprehend in the upcoming years, and the future of it is bright when you see the revenue of global players such as GrubHub, Zomato, JustEat, etc. With online food ordering growing faster than ever, food business owners have an unprecedented opportunity to increase revenue and customer base.
Usage of technology is a win-win for both consumers and restaurants. People have experienced the benefits of online ordering. They will continue to order food online in the future and they will also make decisions based on social media posts.
Like “work from home,” online food ordering has also become “new normal”. And modern technology continues to disrupt the restaurant industry.