The growth of food delivery apps has transformed the restaurant industry. In recent years, food delivery apps such as Grubhub, Uber Eats, and DoorDash have become increasingly popular, providing convenience to consumers who want to order food from their favorite restaurants. However, food delivery apps also offer significant benefits to restaurants that choose to use them. In this article, we will explore the top benefits of using food delivery apps for restaurants and provide case studies and statistics where necessary.
Increased Exposure and Customer Base
One of the biggest benefits of using food delivery apps for restaurants is the increased exposure and customer base they provide. When restaurants partner with food delivery apps, they gain access to a large pool of potential customers who are searching for food delivery options. According to a survey by Zion & Zion, 82% of consumers have used a food delivery app at least once, and 53% of consumers say they order food through a food delivery app at least once a week. Partnering with food delivery apps allows restaurants to tap into this growing customer base and increase their visibility among potential customers.
Case Study: Sweetgreen
Sweetgreen, a salad chain with over 100 locations across the United States, partnered with Grubhub in 2019 to offer delivery through the platform. In the first three months of the partnership, Sweetgreen saw a 25% increase in sales, and by the end of the year, delivery sales accounted for 30% of the company’s overall sales.
Improved Efficiency
Another benefit of using food delivery apps for restaurants is the improved efficiency they provide. By partnering with food delivery apps, restaurants can streamline their operations and reduce the time and resources needed to manage delivery orders. This is especially important for small and independent restaurants that may not have the resources to manage delivery orders on their own.
Food delivery apps also provide restaurants with tools to manage orders and track deliveries, reducing the likelihood of errors and improving the overall customer experience.
Case Study: Little Caesars
Little Caesars, a pizza chain with over 5,500 locations worldwide, partnered with DoorDash in 2019 to offer delivery through the platform. The partnership allowed Little Caesars to streamline its delivery operations and reduce the time and resources needed to manage delivery orders. As a result, the company saw a 30% increase in delivery sales in the first six months of the partnership.
Increased Revenue
Partnering with food delivery apps can also help restaurants increase their revenue. By offering delivery through food delivery apps, restaurants can tap into a new revenue stream and reach customers who may not have visited their physical location otherwise.
According to a survey by Toast, restaurants that offer delivery through food delivery apps see an average increase in sales of 20%. In addition, restaurants that offer delivery through multiple food delivery apps see an average increase in sales of 30%.
Case Study: Fazoli’s
Fazoli’s, an Italian fast-casual chain with over 200 locations in the United States, partnered with DoorDash and Grubhub in 2020 to offer delivery through the platforms. The partnership helped Fazoli’s tap into a new revenue stream and reach customers who may not have visited their physical locations. As a result, the company saw a 30% increase in sales in the first month of the partnership.
Improved Customer Loyalty
Food delivery apps can also help restaurants improve customer loyalty. By offering delivery through food delivery apps, restaurants can provide a convenient and seamless experience for customers, increasing the likelihood that they will return to the restaurant in the future.
In addition, many food delivery apps offer loyalty programs and rewards for frequent users, further incentivizing customers to order from a particular restaurant.
Case Study: Domino’s
Domino’s, a pizza chain with over 17,000 locations worldwide, has been using its own food delivery app since 2011. The app allows customers to place orders, track their delivery, and earn rewards through the company’s loyalty program.
By offering a convenient and seamless experience for customers through its app, Domino’s has been able to improve customer loyalty and increase customer retention. In fact, the company reported that in 2020, over 70% of its U.S. sales were digital, with the majority of those sales coming through its app.
Increased Flexibility
Partnering with food delivery apps also provides restaurants with increased flexibility in terms of their delivery operations. By outsourcing delivery to a third-party app, restaurants can focus on their core competencies, such as cooking and serving food, rather than managing delivery logistics.
In addition, food delivery apps provide restaurants with the flexibility to adjust their delivery operations based on demand. For example, restaurants can adjust their delivery hours or delivery area based on customer demand and business needs.
Case Study: Shake Shack
Shake Shack, a burger chain with over 300 locations worldwide, partnered with Grubhub in 2019 to offer delivery through the platform. The partnership allowed Shake Shack to outsource its delivery operations and focus on its core competencies. In addition, Shake Shack was able to adjust its delivery area based on customer demand, allowing the company to efficiently manage its delivery operations.
Improved Marketing Opportunities
Partnering with food delivery apps also provides restaurants with improved marketing opportunities. Many food delivery apps offer advertising and promotional opportunities to restaurants, allowing them to reach new customers and promote their brand.
In addition, food delivery apps provide restaurants with data and insights on customer behavior, allowing them to better understand their customers and tailor their marketing strategies accordingly.
Case Study: Subway
Subway, a sandwich chain with over 40,000 locations worldwide, partnered with Grubhub in 2019 to offer delivery through the platform. The partnership provided Subway with advertising and promotional opportunities on the Grubhub platform, allowing the company to reach new customers and promote its brand. In addition, Grubhub provided Subway with data and insights on customer behavior, allowing the company to tailor its marketing strategies to better meet customer needs.
Reduced Costs
Partnering with food delivery apps can also help restaurants reduce costs. By outsourcing delivery to a third-party app, restaurants can avoid the costs associated with managing delivery operations on their own, such as hiring delivery drivers and managing delivery logistics.
In addition, food delivery apps often offer discounted rates for restaurants that partner with them, further reducing costs for the restaurant.
Case Study: TGI Fridays
TGI Fridays, a casual dining chain with over 800 locations worldwide, partnered with Uber Eats in 2019 to offer delivery through the platform. The partnership allowed TGI Fridays to avoid the costs associated with managing its own delivery operations and take advantage of Uber Eats’ discounted rates for restaurants. As a result, TGI Fridays was able to reduce its delivery costs and improve its profitability.
Improved Customer Reviews and Ratings
Partnering with food delivery apps can also help restaurants improve their customer reviews and ratings. By offering delivery through food delivery apps, restaurants can provide a convenient and seamless experience for customers, increasing the likelihood that they will leave positive reviews and ratings.
In addition, many food delivery apps allow customers to leave feedback and rate their experience, providing restaurants with valuable insights on how they can improve their service and customer experience.
Case Study: Panda Express
Panda Express, a fast-food chain specializing in Chinese cuisine with over 2,000 locations worldwide, partnered with Uber Eats in 2019 to offer delivery through the platform. The partnership allowed Panda Express to provide a convenient and seamless experience for customers, resulting in improved customer reviews and ratings. In addition, Uber Eats’ rating system allowed Panda Express to receive valuable feedback on how to improve its service and customer experience.
Increased Revenue and Sales
Partnering with food delivery apps can also help restaurants increase their revenue and sales. By offering delivery through food delivery apps, restaurants can reach a wider customer base, including those who may not have been able to visit the restaurant in person.
In addition, food delivery apps often offer promotional opportunities and discounts for restaurants that partner with them, further increasing sales and revenue for the restaurant.
Case Study: Chili’s Grill & Bar
Chili’s Grill & Bar, a casual dining chain with over 1,600 locations worldwide, partnered with DoorDash in 2019 to offer delivery through the platform. The partnership allowed Chili’s to reach a wider customer base and take advantage of DoorDash’s promotional opportunities and discounts. As a result, Chili’s reported a 20% increase in sales and a 40% increase in delivery orders in the first quarter of 2020.
Increased Efficiency and Productivity
Partnering with food delivery apps can also help restaurants increase their efficiency and productivity. By outsourcing delivery to a third-party app, restaurants can focus on their core competencies and reduce the time and resources needed to manage their own delivery operations.
In addition, food delivery apps often offer streamlined order management systems and tools, allowing restaurants to efficiently manage and process orders.
Case Study: Papa John’s
Papa John’s, a pizza chain with over 5,000 locations worldwide, has been using its own food delivery app since 2016. The app allows customers to place orders, track their delivery, and earn rewards through the company’s loyalty program. By offering a streamlined and efficient order management system, Papa John’s has been able to increase its productivity and process orders more efficiently.
Conclusion
Partnering with food delivery apps can provide a range of benefits for restaurants, including increased customer reach and convenience, improved customer loyalty and retention, increased flexibility and efficiency, and reduced costs. By taking advantage of the promotional opportunities and data insights provided by food delivery apps, restaurants can also improve their marketing strategies and increase their revenue and sales.
However, it is important for restaurants to carefully consider the costs and benefits of partnering with food delivery apps, as well as the potential impact on their brand and customer experience. By evaluating their options and choosing the right food delivery app partner, restaurants can successfully navigate the evolving landscape of the food delivery industry and grow their business in the digital age.
