“What should I have for lunch?” It’s the perfect dilemma to solve. And the best part is: it affects everyone, it’s something that everybody are still willing to pay for, and it happens every day. In fact, unlike other apps such as shopping or utilities, there’s also room for multiple type of food delivery app development, because different people have different priorities when it comes to food. So today, we’re going to explain the 3 ideas on food ordering app for restaurants, and how each of them works.
As you can see, the world is witnessing a major transformation in the way we order food. And because of today’s hectic work schedules, the modern consumers prefer ordering pizza, pasta, or a salad from a nearby restaurant than cooking by themselves.
Now, before we get to the types of food ordering mobile apps, let us share few facts about online food ordering app industry.
- According to Statistics, 10% of U.S. respondents said that they utilize the mobile food ordering app once in a week.
- Out of these respondents, nearly 50% have said that they enjoying using food delivery services.
- And Despite the fall in 1st and 2nd quarter of 2016, the online food ordering industry still presents a $210 Billion market opportunity.
The Evolution of Food Ordering Business
Before smartphones, the traditional model of food delivery companies was something like this: a customer places order over the phone call to a nearby local restaurant and waits for the restaurant delivery guy to deliver the food at customer’s doorstep. At that time, Pizza was the most common type of food being ordered using the traditional delivery model.
But even after technological advancements, smartphones, and online food delivery apps, 60% of this $210 Billion food ordering industry is still attributed to Pizza.
If we look at the entire restaurant industry, which is of $490 billion market, the food ordering business opportunity equates to 43% which is not that bad.
Pizza chains have dominated the food ordering industry for years, but now we’re witnessing the emergence of new on demand food ordering app development. It’s now possible for Entrepreneurs like you who are interested in food delivery app development to take the meal preparation and food ordering services to the next level.
Therefore today, we’re going to explain 3 types of food ordering app development ideas for people who are interested in online food ordering business.
Order-Focused Food Ordering App
Order-focused model is built on top of the traditional food delivery model and works as an intermediate between various local restaurants and customers, offering access to different types of cuisines through a food ordering application.
As you may have probably guessed, the main objective of order-focused food ordering app is to facilitate and provide customer support for the orders.
However, do you know how do such order-focused food ordering app work?
Once the customer is signed into the app, he or she can easily check out and compare menus, price, reviews, and then place their order. Once the order is confirmed, the food ordering app passes the order to the respective restaurant, and the actual delivery is handled by the restaurant.
The app owner collect a fixed amount of fee for the orders placed through their service; this fee is generally paid by the restaurant, so there are no additional costs to the customers.
Logistics-Focused Best Food Ordering App
Just like order-focused app, the logistics-focused app allows its customers to compare menus across various restaurants and order from a variety of cuisines via a single mobile app.
However, in addition to orders, the logistic-focused food ordering apps also provide logistics services to their partnered restaurants. By offering logistics services, these logistics-focused platforms have opened up a new scope of possibility for the restaurants that have never delivered a meal on their own.
For restaurants that don’t deliver their meal on their own, this type of partnership could be very beneficial. For instance, such restaurants don’t have to worry about paying salaries to drivers, maintaining vehicles, and providing insurance policies. These restaurants can focus on more important things such as improving quality of food, as the delivery part is handled by the food ordering platforms.
Now to cover the delivery tracking service cost, the logistics-focused food ordering platforms often charge both restaurant as well as customer on a fixed margin for every order.
Full-Service Food Ordering App
The aim of full-service food ordering platforms is to make food accessible to everyone and deliver it. Unlike order-focused and logistics-focused platforms, the full-service food ordering platforms don’t work with any restaurants. They establish their own kitchen, hire their own chefs who cook food in their established kitchens, and also hire their own couriers who deliver meals to their customers.
Generally, a full-service food ordering platform works like this: customers can look at the daily menu and order their meal to be delivered at their doorstep. Customers can also schedule their meal orders for the next day.
While full-service food ordering platforms rely on their own resources when it comes cooking the meal and delivering it, but as per our experience on working for various food delivery startups, we think that the logistics-focused food ordering app is the most promising type.
However, there is a big question arises at this point…
How to encourage restaurants to collaborate with your on demand food ordering app platform?
The answer lies in offering a special incentive to the restaurants.
This special incentive is nothing but an additional option, a delivery management solution that you can offer to your potential-partner restaurants to manage their important duties such as deliveries, custom orders, and the staff.
This delivery management solution can allow restaurants to manage custom orders, accept payment from platform within the solution, get order history, create ingredient inventory, and much more.
In fact, providing additional delivery management solution to partner restaurants has actually became a new trend now. Many companies like Delivery Hero and UberEATS started providing such delivery management solutions.
However, we believe that logistics-focused food ordering app offers the most benefits to all parties involved in the business.
Food ordering app for restaurants provides an opportunity to increase their user base. This can result into better utilizing kitchen facilities, higher revenue, and further overall business growth.
For customers, the platform provides convenience, promptness, and selection. The option to choose from variety of cuisine and getting their meal delivered at their doorstep.
For platform owners, it offers an opportunity to working with larger and well-established restaurants to achieve higher average order size than regular order-focused food ordering platforms.
But, this doesn’t mean that there is no room for innovation. Remember that progress never stops, and the food ordering industry is changing rapidly. The industry first used to rely on phone calls, now mobile apps, and soon we’ll experience drone-based meal deliveries.
So, if you’ve a better Android app development ideas or a specific goal for your food ordering app, don’t worry because we can take on challenging projects as we always monitor the latest trends and stay up to date with new technologies.