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The Costs and Benefits of Restaurants signing up with an app like UberEats: Complete Guide

Customer cravings are endless. They have every right to desire their favorite food. Let’s say customers need a delicious meal from restaurants down the street. They can opt for takeaways and satisfy their taste buds in a flash. However, what if the eatery is all the way across the town? The undesirability to leave home, commute a congested transport, or spend on personal vehicles to reach out to restaurants leads to one result – customers dropping the plan. As potential customers forfeit their plans, restaurants experience the worst part of running a business – drip in sales. 

The need for an efficient mechanism to connect customers and restaurants paved the rise of third-party food delivery platforms. Apps like UberEats makes the entire process convenient in every aspect. However, a considerable number of restaurant owners still hesitate to sign up with these platforms, with concerns over commission scale, order management, etc. 

If you’re an entrepreneur eyeing to launch an UberEats clone, have you decided how to pitch your restaurants? Or, in case you’re a restaurant owner, are you wondering how an UberEats clone can benefit you? This blog caters to your needs by pointing out how apps like UberEats manages to streamline operations between customers and restaurants. Besides, we’ll also discuss the role of food delivery apps in the future.

The need and scope of food delivery platforms 

It is pointless to look into any market’s future unless it promises stable growth over the years. The food delivery market is an exception to the above statement, but in a positive way – the market has witnessed unprecedented growth. Let’s look at some market stats that signify the development of the food delivery market. 

  • The global food delivery services market forecasts a CAGR of 11.4% between 2019 and 2024, sailing past the $164.5 billion mark by the end of the forecast period (Source: IMARC Group). 
  • Almost 60% of the US consumers order delivery or take-outs at least once per week (Source: Nation’s Restaurant News). 
  • As many as 87% of Americans who use third-party food delivery platforms agree that these platforms make their lives easier (Source: Mintel). 
  • Orders placed via smartphone applications will reach a significant value of $38 billion by the end of 2020 (Source: Business Insider). 

With such stats supporting the massive rise of food delivery platforms, you needn’t hesitate to invest in an on-demand food delivery app.

Food delivery platforms and restaurants – boost visibility and sales

Let’s look at how an app like UberEats works with restaurants. 

  • Initially, restaurants sign up with the platform by specifying the essential details and uploading the relevant documents for verification. 
  • Upon approval, restaurants get to manage their menu in the app based on their availability. 
  • Besides, they can also switch between their working hours based on their preferences. 
  • The restaurant app has an intuitive dashboard, through which restaurant executives get to know user orders, upcoming bookings, menu, etc. 
  • Once users place their requests, restaurants can either accept or turn them down based on their convenience. 
  • After accepting, restaurants process, prepare, and pack food orders. 
  • The delivery executives pick up these orders and drop them at customer locations. 
  • Restaurants receive customer payments after the necessary commission cut-down by the admin. 

Food delivery platforms and customers – convenience and accessibility 

The end-users have the final say on the decline or growth of any sector. Food delivery platforms enhance customer satisfaction to a whole new level as users can enjoy their food from the luxury of their homes. Let’s discuss how a food delivery app works with customers. 

  • Customers download the app and register with it by providing credentials like email ids, phone numbers, etc. Some platforms include social media logins as well. 
  • Customers enable location preferences and browse nearby restaurants that are available. 
  • Customers use search and filter options to narrow their search filters and identify their best-suited restaurant in a flash. 
  • They add food products in the cart and proceed to checkout. 
  • They can pay via any of the multiple payment gateways. 
  • Upon placing orders, customers get to track the exact status using the real-time tracking option. 
  • They enjoy their meal and share their experience with fellow users using the ratings & reviews option. 

Lucrative benefits of signing up with food delivery platforms 

Restaurants enjoy enticing benefits by collaborating with third-party apps like UberEats. Some of the top advantages include 

  • Brand visibility: Even customers who aren’t well aware of the restaurants get to order via the platform, boosting brand visibility substantially. 
  • Enhanced sales: According to Nation’s Restaurant News, joining hands with a third-party food delivery service has enhanced restaurant sales by at least 10-20%. 
  • Inventory management: Most of the popular food delivery apps come with an inventory management dashboard. Restaurant owners get to manage their inventory better with a dashboard that provides real-time analytics. 
  • Retaining customers: With more customers preferring deliveries over dine-ins, restaurants can retain customers by enabling them to order via an online platform. 

Downfalls of joining hands with food delivery platforms 

Similar to a coin having two sides, restaurants experience specific disadvantages due to food delivery platforms. They include, 

  • Commissions: For every payment that restaurants receive, the platform deducts a fixed percentage as commission fees. For small-scale restaurants, this fee can lower their profits, paving the way for restaurant owners’ dissatisfaction. 
  • Hectic order management during peak hours: Restaurant supervisors find it highly challenging to manage orders during peak hours. Managing both dine-ins and deliveries simultaneously can lead to clumsiness in the workplace. 
  • Customer satisfaction depends on delivery workers: A third-party delivery chain influences customer satisfaction to a large extent. A delay in delivering orders can adversely lead to customers losing trust in restaurants as well. 

Food delivery platforms are lifesavers amid COVID-19 

One fitting example of why signing up with food delivery platforms is beneficial and profitable is the damages inflicted by COVID-19. With governments of various nations eliminating dine-ins to curb disease spread, restaurants struggle to reach out to their target audience. Even amid the unforeseen circumstances, food delivery platforms play a crucial role in helping restaurants. 

The demand for apps like UberEats, Grubhub, etc., has scaled massively since the outbreak. During the pandemic onset, Grubhub has witnessed as many as 20,000 new restaurants signing up for food delivery services. Restaurants needn’t hesitate any longer as the ‘new’ normal inevitably involves delivery services. 

Safety strategies can cultivate trust 

As an entrepreneur, by implementing COVID-19 safety add-ons in your UberEats clone, you can emerge as a dominant force. Some of the strategies include,

  • Safety gear for restaurant professionals and delivery workers
  • Face masks & gloves recognition software
  • Contactless deliveries 
  • Digital modes of payments
  • Disabling cash on delivery
  • Go online checklist
  • Safety badges for restaurants
  • Safety ratings and reviews

Conclusion 

An entrepreneur needs to identify favorable conditions to launch and be successful in any business. As a blessing in disguise, COVID-19 appears to be the perfect scenario for entrepreneurs to set foot into the flourishing food delivery services market. With restaurants looking out for alternative ways to reach out to potential customers, you can lend a helping hand and reap profits in no time. All you need is a perfectly safe food delivery app by your side to lure restaurants and customers.

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