Restaurant Trends: Mobile Ordering and Delivery will become a $38 billion industry

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Online & Mobile Ordering

February 5, 2019

Smartphones are changing the lifestyle of people. From what was just used to make phone calls is now used for almost everything in one’s day to day life. Smartphones have given consumers the power to get what they want in just a few clicks. Smartphones along with digital transformation have revolutionized almost every industry in the last decade and the restaurant industry is no different. Gone are the days when you had to call a restaurant, place your order and either request a delivery (for an additional cost) or had to get it picked up. These days, customers can customize and place their orders through online ordering systems or mobile ordering apps

According to Business Insider, mobile orders will account for almost 10% of sales for Quick-Service Restaurants (QSRs) and by 2020, mobile ordering is expected to become a $38billion industry. One main reason for mobile orders to gain popularity is that it makes ordering easier for customers with their customizations, multiple payment options (cash, cards, banking, wallets) and real-time order tracking. 

Who is your target audience?

Millennials are the ones who use their smartphones the most and the ones that dine out most frequently. A survey by Bankrate.com shows that millennials on average dine out five times a week (could be anything from a Starbucks coffee shop to a multi-cuisine restaurant for lunch/dinner). This gives restaurants an upper hand in targeting the millennials who spend most of their time on their smartphones. Depending on the buying behavior, restaurants can tempt these millennials with irresistible offers to retain their loyalty. A mutual win-win for the restaurant and the customer!

Customers want their choice of food at their convenient place and without much hassle. Therefore, the first step for every restaurant’s success is to get a mobile ordering app or register themselves with popular food delivering company. This opens doors for setting up promotions, special offers on mobile orders, use of digital payments/wallets and more. Say, a special 10% coupon code or an offer when ordering through the mobile app will make customers order more than they what they used to on phone. On the other hand, the personalization feature that these apps provide will prompt customers to order more of their favorite dishes through constant recommendation and suggestion triggers.  By doing this, restaurants can start serving more customers and realize profits in their business. Restaurant chains around the world are seeing an increased productivity and profitability benefits with mobile ordering and delivery.

Customer Benefits of having a Mobile Ordering App

  • Ease of navigation to select choice of food and track their orders
  • Customizations of the menu according to their preference
  • Order scheduling to get their food delivered at their convenient time or pick it up on the go
  • No more calling the restaurant or waiting on hold to place an order
  • Increased savings through offers and discounts and earn loyalty points

Restaurant Benefits of having a Mobile Ordering App

  • Increased capacity to handle orders
  • Fewer chances of messing up with an order
  • Opportunity to capture the customer details and increase the engagement
  • Gather feedback about the food and services
  • More the promotions and benefits, more the customers and higher the chances of retaining them as loyal customers

The Moment of Truth

While it gets easy for the consumers, the case is not the same with restaurants. Most restaurants are initially hesitant to bring in the concept of mobile ordering. The reasons are multifold: the infrastructure to have a dedicated mobile app, a dedicated team to ensure everything runs smoothly round the clock and training employees on the workflow of the technology. Despite these challenges, digitalization is making lives easier for restaurants. Instead of having their own mobile food ordering app, they can partner with food delivery companies or simply utilize mobile online ordering software that integrates well with their existing POS system.  With mobile ordering in place, restaurants don’t need to worry much about the reduced footfall in the restaurant.

The big question is: are restaurants ready to adapt to this change? The mobile ordering and delivery industry is globally expanding and slowly replacing phone-based ordering solutions. With customers switching to mobile ordering to grab a bite from their favorite food joint, it’s important for the restaurant businesses to invest in a mobile ordering app. While having a branded app is great to earn more loyalty, restaurants can also partner with third-party food delivery apps and gain exposure to a wider network. 

If you are looking to establish a strong online presence for your restaurant by providing smooth online ordering and delivery options to your customers, get in touch wit Restolabs today. Our experts will understand your requirements, and create customized solutions for your business. 

 

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