The food industry has been worst hit by the Covid19 crisis that swept across the globe in 2020. With sit-down restaurants forced to shut down temporarily and consumers reluctant on eating out, food businesses have incurred heavy losses. Therefore, most food businesses whether small-scale food joints, individual entrepreneurs, or high-end eateries; have embraced a technology-integrated approach to survive amidst all odds. Technology-driven digital solutions like food delivery apps, cloud kitchens, digital menu cards, contactless payment options, etc. are playing a significant role in reviving the food industry. Social distancing being the new normal, the online food ordering system and doorstep food delivery service is going well with the consumers. This trend is predicted to stay in the post-Covid era as well. So, food aggregators like Zomato, Uber Eats, and Swiggy have witnessed a sharp rise in the number of restaurant partners. Some restaurants have even launched their own apps to offer customized services to customers.
This article pens down how technology-driven business models and online food delivery services are reviving the food industry. So read along to know why every food enterprise should consider food delivery app development.
Technology-driven Business Models and Their Profitability
Cloud Kitchen
Cloud kitchens or dark kitchens are virtual restaurants without any physical spaces for dining in. These are delivery-only food providers; and are wholly dependent on online orders from consumers. Cloud kitchens accept orders and deliver foodstuff either via food aggregators, or their own food ordering and delivery application. This business model is being increasingly used by businesses to raise profit margins. Take a look!
Operating multiple food brands with minimal resources
The owner of a cloud kitchen enjoys the flexibility to utilize the same kitchen infrastructure and resources for running two or more food brands simultaneously. For instance, a virtual kitchen brand offering Mexican cuisine would like to deliver Italian cuisine as well. But, rather than adding an Italian menu to the existing brand, the owner can start an entirely different brand selling Italian food operated from the same kitchen. This approach is a smart move as customers prefer trying different food brands.
Minimal Investment and Operational Cost
The owners of virtual restaurants need not invest heavily in setting up their business as they save on the cost of renting and maintaining huge premises for dine-ins. All they need is a kitchen space dedicated to fulfilling online orders and minimal staff needed to operate the kitchen. So, owners can save on hiring client-facing staff resulting in much lower operational cost as compared to conventional restaurants.
Food Delivery Apps
Online ordering and delivery service has become an essential feature amidst the current pandemic scenario. It has been observed that while physical dine-in food spaces were hit hard, eateries offering contactless food delivery services continued to generate sales even during the pandemic. In fact, online food ordering apps witnessed a surge in demand after the outbreak of the pandemic. Today, even after a year of the Covid19 outbreak, several customers continue to prefer off-premise dining options with the social distancing trend still in place. Check out its benefits.
Benefits: Customers’ perspective
- One can avoid stepping out into crowded places and still enjoy warm food from their favorite food joint.
- Consumers with a fast-paced lifestyle enjoy the convenience of hassle-free online ordering and getting eatables delivered to their doorstep.
- Edibles are available even during phases of lockdown.
Benefits: Business perspective
- Continuing to deliver food even amidst adversities helps food brands stay connected with their customers.
- Food delivery services cater to customers belonging to newer demographics regardless of their location and hence enable the providers to broaden their customer base.
Hybrid Infrastructure
Hybrid infrastructure refers to an all-in-one concept that caters to the requirements of diverse groups of consumers on different occasions. Given below are instances of hybrid approach along with their benefits.
- The usage of digital screens in eateries enables owners to effortlessly change their menu boards, content, etc.
- Multi-functional furniture, dividers, etc. facilitate creating various environments for different events or gatherings as per the size of the group and the nature of the event. For example, restaurant spaces can be converted into discos employing smart lighting and music; and dividers enable multiple activities to function simultaneously without interference. This approach will allow customers to choose the experience they desire each time they visit.
- The same eatery offering diverse service models such as casual dining, fine dining, takeaway, choosing order at the counter, delivery of eatables to the table employing a beacon, flexible payment modes, etc. draws more customers.
Technology-infused solutions
Food ventures are utilizing smart solutions for betterment. They are as follows.
- IoT and advanced analytics for accurate prediction of the on-going customer preference and changing eating habits.
- Contactless solutions and services for ensuring post-pandemic safety standards.
- The usage of robots for handing out takeaway orders and smart-screen controlled shelves for storing take-out orders.
Concluding Views
Cloud kitchens, online ordering and delivery services, hybrid approach, and advanced technology-infused solutions are stepping stones towards the revival of the food sector. So, every in-premise dine-in facility or independent food provider needs to adopt these approaches based on their budget.
If you are planning to hire an experienced food delivery app development company, Biz4Solutions would be the perfect pick. We are a distinguished mobile app development company and would design the best food delivery app or solution as per your need.
Know more about food delivery app development by reviewing this blog.