The rise of the internet and subsequent proliferation of digital technologies has touched every part of our lives, and food is one of them. Food delivery apps utilized this same goodwill of the power of the internet and offered you great riches and assured your restaurant business new heights of success.
But when things got down to business, you soon realized that these food delivery apps during their tall marketing campaigns had made promises they couldn’t keep. Not only were they cannibalizing your restaurant’s revenue, but also diminishing your brand’s image and presence. Even if your selling more, the barrage of commissions put on top of your sales makes it impossible to make gains.
I think its a trap for the restaurant owner. The ground reality is restaurants only help the food delivery company to earn more profit. Because some of the top food delivery companies work with the high commission as 40% on every order, ultimately these apps are forcing restaurant owners forcing to cut the large slice of already thin profit margin. According to the survey 2018- The average restaurant only earns 6% profit. In many cases restaurant lose on their orders. Nowadays third-party delivery apps get more fame among dinners, restaurants seem sharp spikes in the kind of delivery order that hurt the restaurant owner more.
More damage to the local business
Restaurant delivery app does more damage to the restaurant business instead of helping them to come forward. Because any profit from the sale is stripped away by the fees they charge the restaurant, which leaves only enough to cover the cost of the food. Sometimes they even don’t cover the food cost. Restaurant delivery apps are a new thing, but this new thing isn’t working well.
Delivery apps steal people thoughts
It’s quite difficult for the customer to tip the restaurant workers. Sometimes We enjoy our meal more, want to pay some tip money to that worker. You can’t give the tip money to the restaurant Workers. When you order the food using third-party restaurant delivery apps. If you still want to pay the tip, restaurant delivery apps will get the benefits.
Delivery app poorly handled
We assume that restaurants’ own app delivers food very efficiently. And Delivery apps are less efficient than just calling the restaurant delivery service yourself. Once you place the order, it can take more time to deliver the food, if the delivery person is busy to deliver another order.
Difficult to listing new food
Imagine you bring new food in your restaurant and want to list on the app with some special offers, It takes lots of time to list on food delivery apps but you can’t run any special offer to that food. Might be you successfully run the offer on that item it will affect your restaurant revenue, delivery apps already taking a high commission for particular food delivery like 30-40% per delivery.
Not able to run own promotion
Suppose a restaurant owner wants to promote their business for the foodies. They can’t run their owner promotion because they don’t have customer detail access. A food delivery app should act as a bridge between you and the consumers, instead, it acts as a barrier. Therefore depending on third-party app networks actively hamper your future growth prospects.
No customer support service
Suppose you get the wrong order. So you can’t approach to the support. Once you get the order food delivery apps are not responsible for the order, simply because it isn’t their business to do so. A food delivery app is in the business of providing a user with choices and convenience of service not quality. As a result, your brand image takes a toll as consumers connect bad customer support as a by-product of your ineffectiveness.
Our Take
Restaurant businesses should no longer let food delivery apps dictate how they run their business. Restaurant businesses should take control of their future trajectory by deploying tech-based solutions to create their food delivery apps.
Hence a restaurant business should go forth and embrace modern trends as its activity participates in its growth by creating its food delivery platform.