Why Food Delivery Services are the Future
Food delivery is a common go-to for restaurants looking to grow their business. That’s not to say introducing this service doesn’t come without its challenges. But never fear, 2020 is a great time to do it. Food delivery is changing fast, and in this article, we explain how and why.
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Food delivery services are changing how we eat
These days you can find just about anything via your smartphone, be it love, medical advice or food delivery. With the world quite literally at their fingertips, the bulk of today’s customers expect convenience.
The seismic growth of the food delivery sector reflects this. According to data from MCA Foodservice Delivery Report, it was worth £8.1 billion in 2018 and is expected to hike up to £9.8 billion by 2021. 60% of UK adults are regular users of delivery apps.
As a fast growing component of the food service industry, delivery no longer comes second to in-person dining. Going forward, it may take precedence over in-person and takeaway dining.
According to Statistica, the number of UK food delivery service users reached 12.7 million in 2017 and is expected to grow to 20.4 million by 2023.
An increase in both outreach and efficiency from third-party food delivery services like Just Eat, Deliveroo and UberEats is partly responsible for this growth.
Demographics play a role, too. As Millennials mature and start families, they’re increasingly turning to delivery service apps for convenience. In fact, over 50% of delivery service app users are between 25 and 44 years old. That doesn’t seem to be changing anytime soon either.
Dark kitchens are making meal delivery more accessible
When introducing a delivery service, restaurants risk overwhelming their service kitchen staff and jeopardising customer experience as a result. That’s why many are opting for dark kitchens. These offsite kitchens’ sole function is to prepare orders submitted through third-party food delivery apps.
Deliveroo has championed this concept more than any other third-party delivery platform. They’ve set up dark kitchens across the country, especially in London, so restaurants can run their delivery service and continue to grow without overwhelming their location staff.
Dark kitchens level the playing field for restaurants seeking to profit from food delivery, but without the non-profitable implications: primarily the cost of managing a fleet of drivers and the risk of them indirectly disrupting sit-down guest’s dining experience.
London restaurant The Regency Club has had success growing its customer base without compromising their sit-down service. Read their full story here!
Drones will help delivery services really take off
Talk of drones will revolutionising our daily lives has been bandied around for years, but we’re yet to see whirring fleets hovering over our cities. That said, Droneii.com predicts that the global drone market will grow from $14 billion to over $43 billion by 2024. Within that market, drone deliveries will be the fastest growing segment.
Earlier this year, UberEats revealed plans to start using drones for food delivery. They’ve even designed their own models.
With a maximum flight time of just eight minutes, the drones aren’t able to cover the whole time of delivery (yet). Instead, UberEats’s drones will drop food orders at a designated area where couriers will pick them up and complete the delivery.
In Iceland, drone delivery company Aha managed to convince the Icelandic transport authorities to fly delivery drones across Reykjavik. Users can order goods, including meals, via an app and have them delivered straight to their gardens. Now that’s convenience!
Integrated delivery software is becoming more intuitive and streamlined
Until recently, many establishments offering delivery services would amass “tablets farms” as they were forced to process food delivery app orders from different platforms using separate tablets. But as integrations and APIs become more efficient, this is becoming less of a problem.
With Lightspeed Delivery, for example, you can integrate delivery platforms like Just Eat, Deliveroo and UberEats directly to your ePOS. Incoming orders from each of these apps can all be managed from a single source of truth: Lightspeed Restaurant ePOS.
All your delivery orders are organised on one intuitive screen, so setting up a delivery service is easier than ever.
Don’t get left behind.
After reading this article, we hope you know what to expect in the coming years. Things change fast in this industry, so it’s always good to be prepared! For more information on setting up a scalable delivery service, download out white paper here.