Introduction to Food Delivery Apps
Food ordering apps have changed how we get our favorite food delivered to people’s places. Restaurants are able to gain access to an ever-increasing customer base through their digital presence. The revenue gained by the online food delivery sector is projected to reach $136,431 million in 2020.
With many restaurants moving to the online front to serve many customers, the market for the food ordering app sector will reach great heights. In terms of revenue and size, the top food delivery apps are listed below:
- Zomato
- UberEats
- FoodPanda
- Swiggy
- GrubHub
- Deliveroo
- Domino’s Pizza
- Just Eat
If not buying from all the food delivery apps, we have heard about the apps listed above. This shows how food delivery apps are popular on a global scale.
The major aspect that is of utmost importance for food delivery apps is restaurant presence as customers look to order from their favorite restaurants through the app.
This blog covers the business models and benefits that make restaurants prefer Zomato like apps for takeouts and delivery. Entrepreneurs can consider these aspects while building Zomato clone apps.
Overview of the business model used by food ordering apps
It defines the operating layout for the functioning of the application. The popular business model used by applications are listed below:
Order only model
It is one of the business models used since the first generation. First generations are an order procuring method which was based on getting orders from the telephone, now it has evolved to get orders from smartphones. Restaurants have their own app for customers to order or partner with the application for listings.
Operating model:
Order the only model is a software application for expanding the customer base for particular restaurants. As the name suggests, only the food orders are acquired in this model.
The packaging and delivery of the orders are handled by the respective restaurant. The food app usually charges 7% to 15 % for providing a digital front for the eateries.
Advantages:
An additional channel for ordering food for restaurants. The popularity of restaurants increases as the number of customers increases.
Limitations:
A restaurant has to handle dine-in costumes, takeouts, and additional online orders so it requires extensive resources and planning to provide optimum operations.
Order and delivery model
The order and delivery model exclusively manages the customers, delivery agents, and the restaurant. Most of the eateries prefer these models as they need not take care of the delivery of the orders.
This model is also called the marketplace model as it is a hub for connecting restaurants with customers. Popular applications like Zomoto, Swiggy, UberEats belong to this model.
Operation:
Customers place the order in the food delivery apps. The concerned restaurant is notified about customers’ order details.
Upon processing the order, the restaurant changes the order status. The delivery agents pick-up and deliver the products to the customers.
Advantages:
More people will use apps like Zomoto, leading to an increase in profits in a short span of time.
Limitations:
The delivery fee charged with food delivery apps includes the actual charge along with a profit margin. If it is a budding restaurant, the charges can be a hefty amount to pay but as the popularity of the eatery increases, it wouldn’t be such a large sum.
Meal-kit delivery model
According to Statista, the revenue is expected to grow over $10 billion in 2020 starting from $1 billion in 2015. The meal-kit delivery model is where customers can choose the restaurant dish and have the ingredients handpicked by the chefs selected by them.
The ingredients are delivered to the customers by the delivery agent. People who do not have the time to go to the grocery store prefer this model.
Operation:
The app displays the number of meal-kits available for the week. Customers can customize the order on the basis of the number of meals and members.
The process of cooking becomes simpler as customers need not worry about the number of ingredients to cook the restaurant meal. The service provider delivers the meal-kit ingredient along with the recipe to customers at their doorstep.
Advantages:
There is no separate investment cost involved for restaurants, they can easily partner with logistics service providers and deliver the fully prepared meal to the customers.
Limitations:
Though the meal-kit delivery model is gaining traction worldwide, still it is not as popular as other delivery models. So thorough research has to be conducted before stepping into the delivery sector.
How does a restaurant boost profits through an online ordering module?
With a manual system, it is strenuous to understand customer needs and make the appropriate changes. In the case of the online ordering module, customers’ mindsets can be accessed effectively and relevant changes can be made. Here are some of the features that make the Zomato clone script simple:
Any changes made in the menu using the central POS system will be immediately reflected in the customer end applications. Restaurants can make last-minute alterations and even set a date-wise menu using this module.
Set favorites:
Customers can set favorites for the preferred restaurant’s products and directly place the orders from the liked food tab.
Access to customer profile:
Restaurants can view customer profiles in this tab, which includes the past orders, and dates when order is placed, and so on.
Using data analytics, restaurants can perform behavioral analytics and offer personalized coupons to customers.
Conclusion
The Zomato like app development has made the entire process of accessing customers’ needs simplistic and convenient, making it one of the preferred choices for digital marketing and business expansion for restaurants.
With the right development approach, you can capitalize on the presence of numerous restaurants by acting as a gateway through your food ordering app.
