Back in 1889, King Umberto and Queen Margherita were probably the first to yield to their laziness when they called upon Raffaele Esposito to deliver them a pizza at their palace in Naples. 130 years later, digital deliveries can be ordered with the swipe of a smartphone app.
Delivery sales have become piping hot, a trend that will likely continue. Between 2018 and 2023, deliveries are projected to grow at more than three times the rate of on-premises sales—with millennials being the top customer—as, by 2020, those 21 to 36 years old will take up 70% of at-home delivery services.
Restaurant owners are stepping up to the plate, as a National Restaurant Association survey finds that 37% of restaurants offer online ordering, while 32% accept mobile payments. Nowadays, customers have options to order food, from websites to apps. This means that restaurants that don’t provide these services might get left behind—unless they choose to partner with a third-party provider that can offer diners the accessibility they crave. The menu just got a little bigger.
So what can a restaurant do in this dog-eat-dog food industry? First of all, they can generate their own platform. This way, they can keep their clientele while also making sure that they save up the commission they would otherwise spend on a delivery company. To do so, they need the amount of cheese no pizza can provide: a food delivery and ordering application can start at USD 60,000 and extend into the millions.
Another less costly option would be partnering with a third-party provider, as they have a great pool of new customers to entice with great loyalty and rewards programs, as well as marketing campaigns that they do in-house. These providers also consider all the logistics involved in the process, including payment, which they solve by teaming up with payment providers like Wirecard, in a bid to offer seamless customer experience at the checkout.
Restaurants can also choose to partner with a third-party solution to form a hybrid app. This option involves creating a proprietary app or website for pickup orders while using a third-party platform for delivery orders, like McDonalds does: Consumers can use the app to order in advance and pick up in-store, or go through its partner Uber Eats to have their meals delivered.
In the end, no matter what type of platform you choose, there are key factors that lead to success, from a great customer experience to the supply chain (how is the food delivered) as well as in-store operations. Because even with online orders, the in-store experience does not have to suffer.
To sum it up, the basic recipe for success is good food and communication—the same way every restaurant should be run—and anyone following it may end up with a big slice of an industry that is projected to hit USD 16.61 Billion by 2023.