Skip to main content

Why should you invest in online food ordering & delivery business?

(Image credit: Image Credit: Varnish Software)

Online food ordering and delivery trend is taking over the traditional phone ordering service. With online food ordering and delivering systems, restaurants have been experiencing tremendous increase in sales & revenue.   

  • Zomato recently crossed the 3 million monthly order milestones.
  • India’s online food ordering sector is growing at 15 per cent every quarter. This growth has resulted in the increase of online orders on a daily basis, i.e. nearly 400,000 during September quarter (2017)
  • It is predicted that there will be a 79 per cent surge in the total U.S. food delivery market (opens in new tab) by 2022, i.e. from $43 billion to $76 billion.
  • More than 90 per cent of the public restaurant companies in U.S. have embraced this new online Food ordering and delivery business.

Another factor that led to popularity of such websites is that customers can take their time to decide their order and can clarify their order while placing. So they too love to order through websites like Zomato and Swiggy.

And if we talk about the restaurants, long queues at restaurants are always good news but at the same time a pressure on their staff. Noting down a wrong order or missing out something from the order or even fumbling down are the biggest nightmares for any restaurant staff as that directly questions their service.  

That is why, restaurants are also up for listing themselves on various online food ordering and delivering websites like FoodPanda, Zomato. It also gives them access to higher profits, feedbacks from each customer, a good user-experience and interface, and more.  

Apart from the above statements and facts, there are some reasons as why an aspiring entrepreneur must invest in this segment:

Reason no.1: The demand for online ordering and delivery is real:

YES! The demand for online food ordering and delivering exists. If a restaurant is offering online services to their customers, then in a subtle way, they are telling them that they are a modern restaurant and want to be accessible to all their customers. For this, they are getting themselves listed with the third part marketplaces like Zomato, FoodPanda and Swiggy.

  • 63 per cent of the Domino’s Pizza delivery orders are given online!

Reason no. 2: Online ordering can help you drive more revenue:

  • In March, 2018, Food delivery and online services in India grew by 48 per cent in terms of order volume over the previous month and revenue-wise by 55 per cent.
  • Over 80 per cent of restaurants are turning to technology–like online ordering, reservation and inventory apps, and restaurant analytics–now more than ever to help them run their business successfully and efficiently.
  • Online delivery currently represents 43 per cent of all delivery orders.
  • Uber Eats, (now available in 13 cities in India) is experiencing nearly 50 per cent month-on-month growth and the number of orders has also doubled in the last 3 months.

Online ordering and delivery website let customers place their order more conveniently. With online ordering system, there is no pressure on the customer to wrap up their orders and because of this; they are inclined to explore all of the menus. As a result, they end up spending more than they planned to be.

Reason no. 3: Order accuracy improves:

The following lines may seem familiar to you:

“…. Can you please repeat your order!

….. I am sorry, I didn’t get you…

…. Excuse me sir, what did you say...”

There are times, when customers in restaurants come across such statements and it makes them angry as they have to repeat their order again and again.  And, this can be unfavourable for newly established restaurants’ reputation.

Miscommunication over orders is the last thing for restaurant owner to desire as well as for the customer. It may leave the customer angry and may hurt business too. Therefore, all such restaurants these days are more comfortable collecting orders from third party like Zomato (opens in new tab). Everything on such sites is easy to manage and track because customer orders, reviews are collected in writing.

Reason no. 4: Personalisation: 

Personalisation is the best way to tap into customers’ needs; if you succeed in doing this, you can easily find a solid USP for your online food ordering startup. Online food ordering websites are equipped with features that make personalisation easy and admin (owner) need not take this responsibility.

If you launch your online food ordering website, you just have to look after its design, functionality, brand image and earn from commissions. The routine activities, orders, content update and delivery is largely handled by the restaurants.

You don’t have to make content edits, updates to each restaurant’s information as that is handled by the hosts only. Restaurants get access to their page and have control over their brand; they can change pictures or update their menu, prices easily.

Reason no. 5:  Customer data:

The restaurants listed on your website get deep insights into what their customers want. With analytics, reporting and other such features in place, they can record their customer’s information, their order patterns, etc. With this data, they can easily identify regular customers and take enormous advantage to increase sales and revenue. 

Internet has changed the traditional way of ordering and delivery system completely. This is a refreshing change for customers as well as restaurants. Customers can now order their food conveniently with just a few clicks. They can now read the entire menu and can end up spending more than usual. On the other hand restaurants can now reach a vast consumer base and make their service more accessible and experience-rich.

One thing you need to ensure for taking the best foot forward in this industry is your development partner. Technology is of utmost value in this regard as no business model can work successfully online without a solid UI. There can be no hard and fast rule as to what is the best option for you so try to learn first the how a food ordering and delivery website works (opens in new tab). Developing it won’t be a trouble if you are familiar with the functioning and website features; it might also help you with business planning. 

Ankush Mahajan, senior digital marketer and e-commerce consultant, FATbit Technologies (opens in new tab)
Image Credit: Varnish Software

Ankush Mahajan
Senior Marketing Consultant at FATbit Technologies

Working as a marketing manager at FATbit Technologies. Ankush is responsible for managing the company's marketing initiatives - developing strategies and tactics to boost the company’s reputation and drive qualified traffic. Uses market research, analysis, and own innovative ideas to develop a cohesive and profitable marketing strategy for the company and its clientele.