How Food Delivery Apps Can Benefit Restaurants: Insights and Case Studies
In recent years, food delivery apps like Grubhub, Uber Eats, and DoorDash have revolutionized the restaurant industry. These platforms not only provide convenience for consumers but also offer incredible advantages to restaurants that choose to leverage them. As a restaurant owner or corporate executive, you’re likely aware of the growing trend of online food delivery. But how exactly can these platforms benefit your restaurant? In this blog post, we’ll explore the top reasons why partnering with food delivery apps can boost your business, supported by real-world examples and statistical insights.
1. Increased Exposure and Customer Base
One of the most significant benefits of using food delivery apps for restaurants is the increased exposure and broader customer base. When your restaurant partners with food delivery apps, you gain access to a large pool of potential customers who are actively searching for food delivery options.
A survey by Zion & Zion found that 82% of consumers have used a food delivery app at least once. What’s even more impressive is that 53% of consumers say they order food through these apps at least once a week. By partnering with food delivery apps, restaurants tap into this growing market and increase their visibility.
Case Study: Sweetgreen
Sweetgreen, a popular salad chain, partnered with Grubhub in 2019 to offer delivery via the platform. In the first three months of this partnership, Sweetgreen saw a 25% increase in sales. By the end of the year, delivery sales accounted for 30% of their total sales. This dramatic growth highlights the power of delivery platforms in attracting new customers.
2. Improved Operational Efficiency
Food delivery apps not only help boost visibility but also improve operational efficiency. For small and independent restaurants, managing delivery orders in-house can be a logistical challenge. Partnering with food delivery apps allows restaurants to streamline their operations and free up valuable resources.
These platforms provide robust order management systems that help reduce errors and improve the overall customer experience. By outsourcing delivery to a third party, restaurants can focus on what they do best: preparing great food.
Case Study: Little Caesars
Little Caesars partnered with DoorDash in 2019 to handle their delivery orders. This collaboration helped the pizza chain streamline its operations, leading to a 30% increase in delivery sales within the first six months. By reducing the complexity of in-house delivery, Little Caesars improved its operational efficiency and boosted its bottom line.
3. Increased Revenue
Offering food delivery through apps opens up a new revenue stream for restaurants. By tapping into the convenience of delivery, you can reach customers who may not have visited your physical location otherwise.
According to a survey by Toast, restaurants that use food delivery apps see an average sales increase of 20%. Even more impressive, restaurants using multiple delivery apps can see their sales grow by an average of 30%. This highlights the lucrative potential of partnering with delivery platforms.
Case Study: Fazoli’s
Fazoli’s, an Italian fast-casual chain with over 200 locations, partnered with DoorDash and Grubhub in 2020. The result? A 30% increase in sales within just the first month of the partnership. This success story underscores the revenue-boosting power of food delivery platforms.
4. Improved Customer Loyalty
Food delivery apps can play a crucial role in fostering customer loyalty. The seamless experience they offer makes it easy for customers to order from your restaurant again and again. Furthermore, many food delivery apps provide rewards and loyalty programs that encourage repeat business.
When customers have a smooth, convenient experience, they are more likely to return. This improves customer retention, a critical component of long-term success.
Case Study: Domino’s
Domino’s has been using its own food delivery app since 2011, allowing customers to place orders, track deliveries, and earn rewards. As a result, Domino’s has built a strong customer base, with over 70% of its U.S. sales in 2020 coming from digital channels. This integration of delivery and loyalty has proven to be a game-changer in customer retention.
5. Greater Flexibility
Partnering with food delivery apps also gives restaurants increased flexibility. Outsourcing delivery operations allows you to focus on your core competencies, such as cooking and serving food. This flexibility also extends to the ability to adjust delivery areas and hours based on demand.
As the market continues to evolve, food delivery platforms allow restaurants to adapt quickly, ensuring they meet customer needs while reducing operational burdens.
Case Study: Shake Shack
Shake Shack partnered with Grubhub in 2019, outsourcing its delivery operations to the platform. This allowed Shake Shack to focus on quality while still meeting customer demands. They also adjusted their delivery area based on local demand, ensuring they remained efficient in managing resources.
6. Enhanced Marketing Opportunities
Food delivery apps also provide excellent marketing opportunities. Many of these platforms offer restaurants advertising options and promotional tools to help drive sales. Additionally, by using these platforms, restaurants gain access to valuable customer data and insights that can inform marketing strategies.
By understanding customer behavior, restaurants can fine-tune their promotions, offering targeted deals and discounts that resonate with their audience.
Case Study: Subway
Subway partnered with Grubhub in 2019 and gained not only delivery capabilities but also increased visibility through Grubhub’s marketing and promotional tools. This partnership allowed Subway to expand its customer base while using data to optimize its marketing approach.
7. Cost Reduction
A major advantage of using food delivery apps is the potential for cost reduction. By outsourcing delivery logistics, restaurants can avoid the significant expenses associated with running their own delivery operation. This includes hiring delivery drivers and managing logistics.
Moreover, many food delivery apps offer discounted rates for restaurants that partner with them, further reducing the operational costs of managing deliveries internally.
Case Study: TGI Fridays
TGI Fridays partnered with Uber Eats in 2019, which allowed the casual dining chain to reduce its delivery costs. By avoiding the need for in-house drivers and utilizing Uber Eats’ discounted rates, TGI Fridays improved its profitability, further demonstrating how cost-effective partnering with food delivery apps can be.
8. Improved Customer Reviews and Ratings
Finally, partnering with food delivery apps can boost your restaurant’s customer reviews and ratings. Many of these platforms allow customers to rate their experiences, providing valuable feedback. Positive reviews can lead to increased credibility and customer trust.
By ensuring that your delivery service meets or exceeds expectations, you can generate positive reviews that attract new customers and foster long-term loyalty.
Case Study: Panda Express
Panda Express partnered with Uber Eats in 2019 to offer delivery through the platform. This partnership resulted in an improvement in customer ratings, as customers enjoyed the convenience and reliability of the delivery service. By focusing on providing a positive experience, Panda Express received valuable feedback that helped them refine their service even further.
Conclusion
The benefits of partnering with food delivery apps are clear: increased exposure, improved efficiency, higher revenue, and greater customer loyalty. As more consumers opt for the convenience of delivery, restaurant owners can tap into a growing customer base while streamlining operations and reducing costs.
However, it’s important to consider the potential challenges, such as the costs of partnering with these platforms and the impact on brand identity. Choosing the right food delivery app partner is essential to ensure that your restaurant maximizes the benefits while maintaining a positive customer experience.
If you’re ready to take your restaurant to the next level, partnering with a food delivery app could be the strategic move you need. Reach out to Ikonik Digital at [email protected] to discuss how we can help optimize your restaurant’s digital presence, improve your marketing strategy, and boost your revenue.
Key Takeaways:
- Food delivery apps can increase your restaurant’s visibility and customer base.
- Partnering with these apps can improve operational efficiency and reduce delivery costs.
- Data-driven insights allow restaurants to refine marketing strategies for higher ROI.
Ready to grow your restaurant’s reach and efficiency? Let’s talk about how food delivery apps can work for you.
