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:
More Clients
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.
Delivery
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.
Convenience
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.
High Commissions
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 may seem high. However the benefits restaurants gain are much greater than the commission they pay.
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 the customer’s name email and order details restaurants and third-party apps cannot learn their preferences. Personal choices remain unknown.
Customer data can be used to send offers and discounts. You can also share promotional codes and information about partner restaurants.
Fierce Competition
Every industry has competitors. Third-party delivery apps can increase competition. This can make it harder to achieve the results you want.
To attract more customers business owners must pay third-party app providers. This helps their restaurant rank higher in searches and appear at the top of the list.
Customers can view the menu and prices online. It also allows them to see competitors’ menus and easily compare services.
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
Too much of anything can hurt a business. Putting everything in one basket or showing all your plans at once may not work well.
Restaurants should not rely entirely on third parties to boost sales. They should explore ways to promote online orders and create new sales channels.
Everything has pros and cons. The final choice to launch an app independently or use a third-party provider rests with the restaurant owners.
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.