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Benefits of Food Delivery Service to Customers: Convenience Matters

Marketing
26 Jan 2024

Restaurant managers are always on the lookout for ways to keep the cash flowing, and these days, food delivery is a real game-changer.

Whether you're a fresh face on the restaurant scene or a local fave that's been around the block, adding a food delivery service to your gig can seriously amp up your sales, reach, and bank balance.

After all, having a food delivery option means you're covering both the folks dining in and those chilling at home. This food delivery guide covers the following:

  • The current trends in food delivery and restaurant delivery services
  • The advantages of providing food delivery service
  • Key factors to weigh before deciding
  • Choosing between handling delivery in-house or opting for a third-party service
  • Essential requirements for setting up a restaurant delivery service

Sound good? Great! Let's get started.

Key food delivery trends stats

Before we go into the benefits of food delivery, let's look at some noteworthy statistics for online delivery services so that you can really grasp the profitability and potential in the food delivery sector.

  • Over 112 million Americans have reported using a food delivery service [1].
  • The revenue in the online food delivery market is forecasted to reach 1.22 trillion USD in 2024 [2].
  • A whopping 63% of people 18 to 29 years old have used a multi-restaurant food delivery website or app service in the past 90 days [3].

Now that you're aware of the sector's rapid growth let's guide you through the top trends to tap into this market.

Keeping up with food delivery services

Back in 2016, food delivery orders comprised 7% of restaurant sales in the U.S., as reported by the New Yorker [4]. In the subsequent years, the trend of diners opting for delivery and takeout steadily rose. However, the pandemic acted as a catalyst, propelling this trend into high gear. In fact, the pandemic more than doubled the business of food-delivery apps [5].

Although food delivery has eased off from its pandemic peak, it remains a highly viable channel for restaurants. According to a 2023 State of Restaurants Report, online ordering now contributes to about 25% of restaurants' overall business [6], signifying a substantial portion of sales.

Of course, not all restaurant online ordering systems are created equal. Some restaurants rely on third-party delivery service for both takeout and delivery, despite  associated fees, it can bring in a high volume of sales. Others opt for an in-house or direct online ordering system or online food delivery service. Some restaurants strike a balance, using a mix of both approaches. If your restaurant isn't exploring any of these options, you're missing out on a crucial revenue stream.

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Five game-changing advantages of food delivery services

Let's break down why speeding into the world of food delivery services is a game-changer for your restaurant, bringing practical benefits that resonate with both your business and your customers.

Bigger bills, happier customers

Fun fact: Online and delivery orders tend to bring in about 20% more dough to your restaurant than in-house dining [7]. That's right! Offering food delivery services not only means your customers get their favorite meals at their doorstep but also encourages them to explore more from your menu, boosting the average order value.

Expand your horizon, serve more tastes

By jumping on the food delivery bandwagon, you're not just serving the regulars who swing by your physical spot. Nope, you're reaching a whole new crowd—people who love your grub but prefer it in the comfort of their own homes (and perhaps live much further away). It's a savvy move to cater to diverse tastes and tap into those additional business opportunities.

Trim the fat, boost the profits

Thinking about streamlining your restaurant operation? If delivery becomes the big cheese in your business or you're thinking about trying out a ghost kitchen setup, you can trim the fat from your operating costs. That means downsizing your physical space or cutting back on front-of-house staff to save on rent, utilities, and labor costs. It's like delivering meals and boosting profits, all in one neat package.

More faces, more places

Food delivery isn't just about feeding your regulars. No, it's a ticket to attracting new faces. Third-party delivery apps like Uber Eats, DoorDash, or GrubHub double as marketing platforms, giving you access to a massive pool of potential customers. You're not just getting your menu in front of people outside the usual walking distance. Instead, you're saying hello to new regulars!

Supercharge your marketing

Partnering with third-party delivery apps helps you to crank up the volume on your marketing game. These platforms, with their extensive user base, not only bring in orders but also expose your restaurant to a broader audience. It's marketing on the fly, turning those one-time diners into loyal fans.

So, if you're not already into the world of food delivery, you might want to take a bite. It's not just about delivering meals; it's about delivering on the benefits your customers and your business crave.

Three considerations before diving into delivery services

Deciding whether to offer food delivery isn't a one-size-fits-all scenario for restaurants. It requires a thoughtful evaluation of your venue, location, and customer base. Here are three crucial factors to ponder:

1) Venue type

In the past, delivery was often ill-suited for restaurants where the culinary experience took center stage, and the venue ambiance or chef's presentation played a significant role. However, the landscape has evolved, and even fine dining establishments are reimagining the delivery experience.

Upscale restaurants are adapting by offering takeout options that bring the fine dining experience directly to diners' homes. This trend extends to Michelin-starred restaurants across cities like Toronto, London, Sydney, New York, and Los Angeles, where renowned establishments now provide at-home fine dining options.

On the flip side, traditional fast-food restaurants face unique challenges. Fast food is designed for immediate consumption, and delivery can compromise the quality of certain items, like the dreaded soggy fries. Some fast-food chains are tackling this by streamlining their menus for faster and more efficient service, ensuring orders reach delivery customers promptly.

2) Customers

Engaging with your existing customer base is essential before launching a delivery service. Would they embrace the convenience of delivery, or do they prefer the in-person dining experience? Understanding how your current patrons might alter their dining habits can guide your decision.

Moreover, consider the untapped market potential. A 2023 Diner Trends Report found a growing affinity for takeout among Gen Z diners, with 45% ordering weekly or more. Millennials aren't far behind, with 38% showing similar takeout habits [8]. Assess if these demographics align with your target audience, and contemplate the possibility of expanding your clientele by introducing delivery.

3) Location

The popularity of delivery varies based on location. Urban areas often witness higher demand due to the convenience it offers while suburban or rural locales, where people have easy access to transportation, may see less enthusiasm for delivery services. Evaluate whether your restaurant is situated in a region where convenience outweighs the experiential aspect and tailor your decision accordingly.

As you navigate the decision to venture into the realm of food delivery, these considerations will serve as a compass, guiding you toward a choice that aligns seamlessly with your restaurant's unique identity and the preferences of your valued customers.

Connect with more customers on leading food delivery platforms

Expand your customer reach by promoting your restaurant on the most popular food ordering channels on the market.

Maximizing reach with Epos Now Delivery

In the fast-paced world of food delivery, connecting with more customers and streamlining the online ordering process is key to success.

Epos Now empowers your restaurant to expand its customer reach by seamlessly connecting with leading food ordering platforms. Whether it's JustEat, UberEats, or Deliveroo, our POS system integrates with these popular channels, making it effortless for your restaurant to be visible and accessible to a broader audience.

Epos Now Delivery by the numbers

Hosted by Otter, specialists in connecting restaurants with leading food ordering platforms, Epos Now Delivery brings tangible benefits to establishments. On average, our customers achieve remarkable results:

  • 78% increase in order volume
  • 20% decrease in order issues
  • 44% increase in sales
  • 61% decrease in lost sales

With Epos Now's restaurant POS or Quick Service POS systems, you're not just managing orders – you're revolutionizing the way your restaurant connects with customers and thrives in the dynamic landscape of food delivery.

Delivering our final thoughts

So there you have it. Our complete guide on food delivery services and why your businesses in the restaurant industry could really do with having one.

From understanding the current trends and statistics shaping the industry to uncovering the game-changing advantages of embracing food delivery, we've laid out the essential considerations for restaurant owners. Whether you're eyeing an increase in order volume, a boost in sales, or an efficient way to connect with more customers, our guide provides the roadmap for navigating the dynamic landscape of food delivery.

And with Epos Now's restaurant POS system and Epos Now Delivery service, you're not just managing orders – you're revolutionizing the way your restaurant thrives in this fast-paced world. It's time to take that bite into the world of food delivery and serve up success for your business.

Liked this blog? Check out our additional restaurant resources including our how to create a takeout and delivery menu guide and our 5 great ways to sell food online blog.

Ready to streamline your restaurant operations? Contact our team today for a seamless POS solution tailored to your needs!

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