With the closures of 2021 and the current labor shortage, many local restaurant owners are struggling to increase sales. By implementing an online food ordering system, restaurant owners can streamline their operations and cater to the growing demand for contactless ordering. This article explains how to add an online food ordering system and the best delivery services to your business plan. By doing so, you can help your business succeed in the face of these challenges.
Why should you consider an online food ordering system and local delivery service for your restaurant?
Without a doubt, a more efficient business model would be one where the process is faster and there is an increase in profit margins. Additionally, if you can reduce the use of staff by eliminating some steps in the process, you can save money.
For example, compare serving a customer directly at a clean table with disinfected plates and cutlery and a person attending to them personally. To taking an order online from your own POS system, sending that order automatically to be displayed in the kitchen on a screen. Once prepared, delivering it to the customer through a local meal delivery service that is completely free for your business. All of this is possible now with iPos, we provide delivery service at no cost to your business and create your online ordering store.
Moreover, having an online food ordering system will expand your potential audience. Some people prefer to consume without sitting at a table in a public place. Many customers are getting used to using their devices to place orders and see what restaurants offer in advance. Online orders and deliveries have already grown 300% faster than dining in a restaurant since 2014. If your restaurant can provide these digital options to customers, you can capitalize on this change in the food industry and ultimately get more sales.
The trend is to rely much more on this business model in the coming years. The global online grocery market is projected to grow to $269.80 million in 2023, with a forecasted Compound Annual Growth Rate (CAGR) of 15.10% until 2027. Also, the market for prepared meal delivery services will expand from $11.68 billion currently to $19.64 billion by 2026.
So, how can you adopt an online food ordering system and local delivery service for your restaurant?
When most people think of e-commerce, they think of an online store where there are numerous items that can be shipped directly to their door. However, restaurants must take a different approach due to the nature of the business.
A simple way to transition your restaurant to an e-commerce website is to offer online food ordering. Having an online food ordering system not only provides customers with an easy way to browse your menu, but it also allows them to select what they want and have it ready with just a few taps.
Another way your restaurant can make good use of e-commerce is by having gift cards for your restaurant available online.
As online food delivery continues to grow, more restaurants are using personalization around menu items. Businesses can use data generated through delivery platforms to offer their customers personalized menus that cater to their lifestyles or food allergies. These personalized menus can be considered when making food recommendations, making the customer experience more enjoyable. With a more personalized experience, customers can connect more with the business.
What do you need for your restaurant’s online ordering store?
- A website platform and host: WordPress and Shopify are good options for your website. Many of these website builders will have templates that will help with restaurant web design ideas. You will also need a website host, such as GoDaddy or Bluehost, to set up your online presence.
- An online ordering and/or delivery system: Online orders will likely be the most important addition to your restaurant’s website.
The problem with delivery
For some restaurants, the economics of delivery simply don’t add up. External providers charge fees that can reach up to a 30%. Since restaurants sometimes already have narrow margins, the cost of shipping can have a negative impact on the business’s profit.
To make delivery more profitable, companies have made it more expensive. In many restaurants, menu prices are higher for delivery than when someone goes to the restaurant.
For some restaurants, the right approach may vary, they choose to hire drivers or partner with a delivery company. The costs of home delivery will depend on the cost of your ordering system and your delivery service option.
The 3 most common delivery models:
- First-Party Delivery with Own Drivers. This model is mainly used in pizza places. The delivery fee should cover all expenses associated with bringing products from the establishment to the customer. The main expenses would be: paying employees and drivers; and costs of fuel, maintenance, and car insurance, among others. To ensure that you cover all of these costs, your shipping fee should be higher than the average cost of shipping per order.
- First-Party Ordering with On-Demand delivery. Restaurants can have access to a network of drivers from a delivery company for a fixed fee per order, instead of a commission based on a high percentage. Through this delivery model, restaurants can maintain control of valuable guest data and their brand. It’s the best delivery service for restaurants looking for a local meal delivery service option.
- Third-Party Delivery. Delivery apps like Doordash, Grubhub, and Ubereats charge restaurants commissions that can reach up to 30% for the delivery and marketing services they provide. The delivery apps maintain the delivery fees and define how to compensate their drivers.
Restaurants looking to expand their business and improve customer satisfaction can benefit from a customizable online food ordering system with delivery. When choosing the best delivery model and defining your fee, it’s important to balance your restaurant’s needs with your customers’ desires.
A solution that can benefit restaurants by providing a customizable online food ordering system with delivery services, including local delivery options, is iPos. Also, with a cost-free delivery system for the restaurants. All of this can be centralized from within your own POS software system. It’s all an advantage for these types of businesses where the most important thing is to avoid generating losses and focus on expanding your profits.
Sources:
Food Delivery and Pickup Commissions and Fees, Explained | For Merchants
The Ultimate List of Online Business Statistics (2023) | WPForms
Ecommerce: The History and Future of Online Shopping | Big Commerce
