How restaurant delivery service will increase revenue

By 3.1 min readPublished On: July 3, 2019

Convenience is key for today’s consumers. As online food delivery and mobile ordering apps reshape consumer expectations for speed and convenience, operators have to keep pace with these demands or watch their sales drop.
The world we live in today is fast -paced and driven by technology.  Consumers want to be able to click a button, and satisfy their cravings with out having to leave home. Food delivery continues to be a popular meal solution for diners—but it’s moving beyond the days of just ordering a pizza. While restaurant sales are expected to grow at a 5.9% CAGR over the next five years, delivery and takeout will grow at a 21.7% CAGR.  The online orders’ share of restaurant sales will likely double over this time period, from 2.5% in 2017 to 4.9% in 2022.  So if you’re not capitalizing on the delivery trend, you could be missing out.
Here are three ways that offering delivery can increase your restaurant revenue.

1. Convenience is everything

Customers are able to order breakfast, lunch, dinner and everything in between with just a few clicks. Even though restaurant sales from foot traffic have plateaued, restaurant delivery sales continue to grow, increasing by 20% over the last five years according to industry research firm NPD group.
Consumers are seeking goods and services that are easily accessible. Even if you already offer delivery think about expanding delivery zones. For example, Domino’s now delivers to public spaces like parks and beaches, further capitalizing on the demand for convenient food delivery wherever customers are located.

2. Broaden your customer reach

The restaurant industry is a competitive market to get into.  When competing head to head with  a similar business, if their restaurant offers delivery they are already ahead as they are able to service more customers.
Millennials are at the top of the list when it comes to who uses restaurant delivery services the most. This generation is over 50 million strong with a spend of $3 trillion annually, so attracting them is worth it for your business.   Investing in delivery services could just be the trick you need to cash in on millennial spending.

3. Higher spend on online orders

Your restaurant should offer online ordering if you’re going to go ahead and offer delivery. No one wants to phone and sit on hold , plus your order can get messed up if heard in correctly. Offering online ordering just streamlines processes for your staff, and it’s easier to persuade customers to order more. Up selling and cross selling can be built into the platform, automatically making suggestions for food pairings, toppings, etc. In addition, with the ability to include attractive photos, descriptions and targeted promotions, the opportunities to entice customers to buy are endless. According to Nation’s Restaurant News, every order made through the mobile app is about $4 more compared to the orders made in a restaurant.
Remember this is all about convenience is everything for this market. People will happily pay a higher fee to have their food arrive quicker, and without having to leave where they are. As a restaurant owner, you want to make it as easy as possible for customers to order time and time again. Small businesses may need some help to get delivery services off the ground, but a software solution that seamlessly integrates with your point of sale system can make it easy. Stayed tuned to PointOS as they can be your solution provider for more  on launching delivery — and a new revenue stream.
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