It is hard to deny that third-party delivery is making a major impact throughout the restaurant industry. What some are calling, “the off-premise revolution,” is officially here to stay. Off-premise sales account for a rough majority of restaurant sales. So, what is your restaurant waiting for? Learn more about how your restaurant can drive additional revenue and make third-party online ordering an effective business tool.
Direct Channel vs Third-Party Delivery
While there are benefits to having in-house delivery options – by catering only to those using in-house options your restaurant is missing out on potential customers that are using third-party delivery platforms. In fact, 63% of young adults are using third-party delivery services, according to a market research team at Zion & Zion. Millennials continue to lead the charge as the most frequent users of third-party delivery – Gen-X being a close second.
Manny Picciola, Managing Director at L.E.K. Consulting and co-author of Meals on Wheels: The Digital Ordering and Delivery Restaurant Revolution, explains that, “millennials are a driving force behind the growth of digital ordering and delivery. We expect them to account for a full 70 percent of the at-home delivery business by 2020.” These users average 10% more restaurant visits a year compared to those who are not using the third-party delivery applications. Rather than replacing the dining experience entirely, third-party delivery has introduced a new dining experience to those who frequent their platforms.
The Online Delivery Market Leaders
The average consumer has 2 delivery apps on their mobile device and uses them on average 3x per month. According to Technomic, consumers have a different average spend depending on which third-party platform they typically order on. The highest average spend hovers around $42.74 on a single order. Are you wondering what third-party online ordering platforms are used the most frequently by consumers? Check out the list below:
Whenever you are deciding to add on a new service, it is a good idea to research the best fit for your restaurant. There are a few tips to consider when deciding which third parties to implement: survey your area to see which platforms are being used the most by your customer base, find out which third parties your competitors are using, and lastly take a look at which third-party online ordering service you personally see yourself using the most! After going through these steps, narrow down the top contenders that seem to consistently come up in conversation, then proceed to start offering third-party online ordering!
How to Make Delivery Count
Have you ever wondered how third-party delivery can make an impact beyond the obvious? Perhaps you weren’t aware that there are additional ways that third-party online delivery could make an impact on your business – take a look at these ways that restaurants can use third-party online ordering insights to increase overall profitability and improve the experience for customers.
DIG IN ON THE DATA
The word data can sometimes be intimidating and can drive individuals away from analyzing readily accessible metrics. Restaurant operators have access to insights from third-party delivery platforms that are beneficial for a variety of reasons. Operators can use these insights to further analyze customer spending habits, which gives them an inside look at specific customer behaviors that will help them target an exact customer base. Restaurants then can create advertisements and generate new marketing initiatives to appeal to that audience, derived entirely from third-party platform insights.
Data also gives restaurant operators the opportunity to view metrics about menu items – which are being sold the most, and at what times. For restaurants, this can help to generate a more efficient and effective inventory management plan. This allows businesses to keep up with demand while preventing excess inventory from going to waste – ultimately improving the restaurants’ bottom line. Using these simple data trends can ultimately improve operations and increase potential profitability.
INCREASE BRAND AWARENESS & VISIBILITY
Picture this: a person is sitting on their couch, hungry, and desperately needing food. So, what do they do? They grab their cell phone sitting nearby and start aimlessly scrolling on their third-party application of choice. They come across a few places that look decent, but still are waiting for something to spark their interest. Since only 54% of consumers open third-party delivery apps with a restaurant in mind, they take their time and continue to scroll. They notice a new restaurant on the list in their general area that they have never heard of before, and soon after, they place an order.
Now, as a restaurant operator, you want to be the restaurant that the customer decides to order from. Being on a third-party online ordering app leverages an opportunity to stand out among new and old customers alike. These platforms provide your restaurant increased visibility, leading to heightened brand awareness. Today’s marketplace is extremely competitive and the last thing a restaurant operator wants to do is give their competition the upper hand. If your competitors are accessible on third-party online ordering services, they are reaching potential customers that your restaurant might be missing out on. By signing up with a third-party online ordering service, restaurants expand their customer base, giving new (and old) customers the opportunity to experience what your restaurant has to offer.