Having the best food in town isn’t the only thing that defines you as a successful restaurant owner. A plethora of factors are in play and the willingness to adopt new technology is definitely one of them.
Technology and online systems have revolutionized every part of the business and social life. So if you are seeing a touch of technology in the F&B industry, it shouldn’t be surprising.
Turn heads and restaurants are already introducing robot waiters and electronic ordering systems. Traditional cooking equipment replaced with modern, smart cooking systems, sometimes even automated ones too.
This brings us to one of the biggest decisions F&B businesses have to make. To create your own online ordering and delivery system or join an existing delivery application?
Online Delivery System for your Food Business
More often than not, when the business starts to plateau, restaurant owners fall into a slump of what they can do to bring the business more profits. When you only serve dine-in customers, you’re limited by the number of seats available in your restaurant. However, with a food delivery system in place your opportunities are endless. The online food delivery system is probably the next most effective strategy to land new customers.
Is your Business Ready for Online Delivery Services?
According to a recent survey on food orders in Singapore, almost 70% of consumers order online food at least once a month. Breaking down the statistics, it’s clear that there is potential to land these consumers as loyal clients if you become a part of this online food delivery community.
The question is, how do you handle the technological and the operational part of the system if you’ve never dealt with online food orders? How can you juggle between maintaining a good level of walk-in customers and online orders without compromising the other?
Not sure how to prepare your business to adopt an online food delivery system?
FoodRazor is like your smart market analyzer focusing on aspects to minimize your food cost and maximize your profits. Instead of spending hours on managing invoices from suppliers, let our platform accurately digitalize them for you in 24 hours. No need for extra staff to handle these menial tasks when they can manage the food deliveries instead!
Online Delivery System Model
If you are new to the online food delivery market, make sure that you know the essentials. Here are a few necessary things you should prepare before the launch of your food delivery service:
An optimised online platform where users can order food from
Staff trained to manage online orders
An experienced delivery team
Of course, it won’t be easy for smaller businesses to have these resources. This is why there are options to join existing delivery platforms, for example, GrabFood, FoodPanda and Deliveroo.
If you aren’t sure which is the best choice for your restaurant, let us guide you through these two options. We’ll list out the pros and cons of both systems so that you can make an informed choice for your business.
In-house Delivery App
You can have a customized delivery app developed for your food business. This app will provide you with all the functionalities required for online ordering systems. But before deciding upon your own delivery app, make sure that your business is ready to bear the expenses. Owning an online delivery app is a huge investment.
Pros of In-house Delivery App
You have full control over your online menu, orders, transactions and delivery experience without involving a third-party
Customized features for your targeted consumers can be included in your own app
You can generate maximum profit by eliminating third-party involvement and not having to pay commission
Reduced communication barriers because you’re able to stay in touch with customers throughout their order
Cons of In-house Delivery App
Setting up delivery services requires a large capital as well as expertise
Running an in-house delivery app means you have to be accountable for the entire delivery experience
You may lose out on the already established clientele that third-party applications have
Joining a Third-Party Delivery App
Using a third-party delivery service is especially great for restaurants just starting out or restaurants that can’t justify making the investment in starting their own delivery app.
Pros of Joining a Third-Party Delivery App
Focus on the food without worrying about having to manage the online systems
You get a chance to showcase your menu to millions of new consumers
Save on the large development budget required for app development and maintenance
You can outsource the marketing work to the delivery apps, but of course, you’ll need to pay for it
Cons of Joining a Third-Party Delivery App
You will have to pay a commission
The third-party delivery app can access your client’s data
For the promotion of your brand on delivery apps, brands have to pay more than 30% commission on every sale
Although these apps may be able to land more orders, they can also reduce your overall profit margins
Clientele from the app are exposed to a marketplace of restaurants, promotions are likely required to differentiate your restaurant from those and to attract customers
Both third-party and in-house delivery come with advantages and drawbacks. Before deciding, make sure you weigh the options to determine which is the best fit for your business.
Thinking of areas to reduce food cost to embark on your restaurant's delivery journey? Here are some tips for you on reducing food costs.