Why Food Delivery Apps Reducing Restaurants Profit?

Nowadays, every restaurant owner trying his best to run a business successfully and for that, he does what he can like including unique cuisines into menu cards, hygiene, well-trained staff, familiar atmosphere, & marketing. The purpose behind this is making more money, simple.

With the exception of a few, some innovative changes have taken place in the last 5 to 6 years. Food delivery service is one of them and with the help of it; business growth can be achieved. Thus the advantages are reaching out to more customers within less time, huge chances of mouth publicity, the one-time customer turns into a regular customer.

This is how the scene is shown. So, the question is, do you get the expected profit as well as benefits from this service? Definitely, this is something to think about, in the beginning, it seems that everything is going well but once the rolling get started then check the accounts, you will get known where profit is being divided.

In-House or Third-Party Food Delivery Services

Many restaurants are having their own food delivery service or some hire third-party delivery services. Within your own food delivery services, maybe you can cut down the cost of petrol, gas, insurance, individual’s salary, extra charges, or among the small team you can easily manage delivery service.

And if you are having a contract with third-party delivery services even there, you have to spend more money than usual. Here you don’t have to pay to the individual company pays them according to contract. But have to pay the extra commission on each food delivery.

Suppose if you are having a limited number of daily orders then there is no chance of getting any profit from it because you are paying an extra commission per delivery. Here you need a bulk of orders to generate a huge profit margin; otherwise, you have to pay them whatever you earn. Remember one thing, the bigger company equals the higher fees.

Discounts & Deals 

If you want to achieve big goals in business, then you have to come up with a unique idea, there should be something different in your box than the others, only then you can beat the opponent. Gaining people’s trust in the food industry is very difficult, but once you have passed this test, success will be at your feet.

People will be happy if they are saving money without any hustle and if so, they will visit again. To build good relationships with customers, offer good discounted deals, hot offers like voucherarena on food delivery i.e. Swiggy Coupon Codes & Vouchers to grab the mouthwatering meals. This is the main reason for the positive outcome of food delivery services.

 Followings are the drawbacks of Food Delivery Apps –

Have to Wait For Food –

When you order a meal or snacks through a food delivery app, you don’t know from which restaurant they are delivering the food. Is the restaurant near to your home? Is the delivery boy well known to your address? Traffic and congestion can also be the main reason for the delay in the delivery.

Sometimes, the delivery boy may be unknown of your address or he is new in such an area that’s why facing problems while finding the address. The more time he takes to find the address, the colder your meal will be and you may have to miss the joy of eating a hot meal like a restaurant.

The Difference in Price –

If you are using 2 to 3 apps at a time, then you will see the price difference. This can vary from app to app or depends on how far they are going to deliver the food. Yes, sometimes delivery charges also included in food charges and some of it free delivery is offered to the customer.

Some restaurants include these extra delivery charges in the bill while some don’t. Meanwhile, have you ever looked at a bill closely, because there are numbers of taxes with extra charges that you have been paid every time?

Number of Unnecessary Contacts –

When we order food in hotel premises only two peoples are involved in this process, one is the chef who prepares the dish with a presentation & another is a waiter who leads to the table. This process is different while delivering food online.

Possibly, there can be unnecessary touches included and also not sure about the delivery boy whether he is taking care of food safety & standards. Looking at the current situation, the customer has to feel safe & comfortable with food delivery services.

Food Quality

Food can make the mood better or worse. Many times there is a big difference between the food in advertisement and the food that comes next to us; this is where people get disappointed. If you don’t get the right thing in the given money, then anyone will get angry. At such times, what option do they have to show their anger?

On the feedback page, here you have to deal with their anger and hear everything that has not been heard so far. Some people comment so badly that your respect will hang on the door. Several incidents are occurring daily, in which the company itself has to pay compensation for food complaints to the customer to keep the reputation.

Less control

Due to traffic, weather, bad roads, address not found all these things cause delay the delivery and once the food gets cold or arrives in bad condition you can’t do much in such conditions. If your first impression is like this, later customers will think twice before ordering from you.

Whether you are using your own or third-party service, you don’t have control over the customer experience, because you are not present there while the customer eats the food. So here error of margin is very less because a single mistake can turn customer opinion negative towards the restaurant.

Conclusion:-

In spite of some errors, food delivery apps are beneficial for restaurants as well as customers. This allows you to order & taste new recipes at home. Online food delivery services are a source of employment for many people.

Peoples are getting benefits from these services, those who have used this for the business they are also earning to a greater extent. Only such services needed some kind of discipline, that’s it.

An example is Swiggy, the startup which launched and started a food delivery app back in 2014. The stats saying, at the end of 2019 Swiggy was operating successfully in 100 Indian cities. What a great milestone achieved by the small startup till now.

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