Mobile apps are making remarkable marks across every sector of the economy right from booking the tickets online to getting down to pay the bills everything can be done quickly using mobile apps.
The apps and the technological advancements are the perfect loaded weapons available in the hands of individuals.
Late night cravings to early cab bookings everything is just a click away.
In the past few years, the online orders for the food delivery has been increasing at a rapid rate. Even the new sales channels have opened up to the new level across the world.
There is no surprise that profitability with mobile apps have been increasing at a rapid rate and the businesses have been making remarkable progress by providing the best user experience.
If the restaurant owners do not have an online page of the restaurant or an app there might appear a time when they are out of business.
Change is the only constant which needs to be focused along with providing satisfaction to the customers.
User experience gets enhanced and the profits of the business can attain new heights of success when they work according to the demand and requirements needed to supply the services in the market.
The dilemma to start the app whether you are a restaurant owner or a third party service provider you need to be quicker in making the decisions as we can observe new apps in the same domain emerging on a daily basis.
By reading the complete article these dilemmas are likely to disappear.
The best way to reach the solution is to identify the pros and cons of having an app.
The advantages of having an app for your food delivery business are as follows:
The most important benefit provided by the apps is the wide availability of the customers using online platforms to satisfy their needs and even new customers opt and learn the basic things to place an order if we talk majorly about elderly people.
Every platform comes up with their loyal customers and their specific target audience. Such platforms provide great disclosure which can genuinely increase the customers and ultimately make them regular clients.
We cannot even deny the fact that it makes it much easier for the customers to get the food at their doorsteps without even having a conversation over the phone and without moving to the restaurant for having takeaways.
All the logistics of the orders and the resources needed gets performed by the third party owner and its delivery services.
The business only needs to prepare its food. This also means that you don’t need to pay, train or even manage the delivery staff.
Most of the people are happy using such services because such services are much more convenient than getting down to the restaurants to pick up their food parcels.
Whether it’s millennials or families with no time to cook for the meal. The convenience of ordering the food appears much more attractive when we talk about different behaviour patterns of the customers.
Even sometimes the delivery charges are levied on the food parcels and though such high rates does not hamper the individuals and they feel like it is the money which they pay for the convenience they get while ordering the food on such apps.
We got to know about the advantages provided by such apps now let’s get into the disadvantages associated with such apps.
The third party home delivery apps and companies are highly popular for high commissions which they charge on restaurants.
Even it can amount upto 35% per meal. The profit margins are already quite low with all the profit margins which are already low when it comes to the food industry and particularly restaurants.
The commission rate might not appear viable though the results which gets reaped by the restaurants are much higher than the commission they pay to such apps.
Loss of proximity to the clients
The most crucial detail about entering into partnerships with third party delivery apps is that you can never get access to the customer’s data.
Without knowing the customer’s name, email and even the order details the restaurants and the third party apps cannot know the personal details of the preferences made by the customers.
The customer data can be used to pitch them with offers and discounts along with the promotional codes and other restaurants which have entered into the partnership agreement.
Each and every industry has competitors, all the third party delivery apps can help in promoting the intense competition and such things might be a hurdle to get the desired results for the apps.
To get more customers the business owners need to pay more amounts to the third party app providers to rank in the top list and among all the searches.
Even the customers are provided with the menu and the rates associated with it and it acts as a window where customers can peep into the competitors menu and where they can easily compare the services that you provide with that of the competitors.
If the competitors provide the same food item with the same quantity at lower prices then you are likely to lose the order of that customer.
The last Sentence
Anything in excess is usually bad for the business putting down all the things in the same basket or revealing all the cards might not work properly.
The restaurants should not completely rely on third parties to increase their sales as they are looking forward to the ways of promoting online orders and even starting with a new sales channel.
Everything comes with pros and cons but the ultimate decision whether to start an app on their own or rely on the third party provider lies in the hands of the owners of the restaurants.
The combination of both the strategies might bring positive rewards for the business in the long run.
The omnichannel adoption is the perfect way to boost up the sales.
James Vargas is an experienced business expert, startup business consultant, assistance in trademark registration, Food Delivery App Development and marketing head at Get Everything Delivered. With the 1.5-decade corporate experience, he is now sharing his guidance to start-ups to grow with corporate team building activities and project delivery solution