In November, Delivery Drivers, Inc. (DDI), attended the Food On Demand Conference, where we discovered ways DDI can help the food delivery industry. By understanding the needs of the delivery industry during the pandemic, to trends in the delivery game, the knowledge we obtained will help build, grow, and support businesses in and out of this industry.
When the pandemic hit, we weren’t 100% sure where this was going to leave the delivery industry. However, we noticed a huge shift in the delivery game. We realized companies had to come together and figure out how to get their products to consumers without them stepping foot in their establishment, including restaurants. They had to learn how to quickly pivot in order to survive.
A few trends noticed from the Food On Demand conference were: faster delivery, ghost kitchens and partnerships. According to the Fundera Food Delivery Statistics, online food delivery generated more than $26.5 billion and by 2024, online food delivery projects to be a $32 billion industry. So how can restaurants and delivery services keep a stake in the game?
The food delivery industry is in an exciting time right now. There are a lot of new products, features and ways of working. Here are 5 things to consider in order to keep up with the ever changing delivery industry.
- Ghost Kitchens – No, I’m not talking about a haunted kitchen. Ghost Kitchens are food prep operations with no waiters, dining rooms or in-store diners. They’re simply a space for business to have food made for delivery-only purposes. If you’re a restaurant, consider doing this to keep costs down and build awareness. If you’re a delivery service, consider hosting these on your platform as it doesn’t look any different to list ghost kitchens as it would to list a real brick-and-mortar business.
- Bring Delivery In House without cutting the middleman – Secondly, many restaurants who work on low margins look for ways to cut out the third party apps. We hear a lot that it tends to hurt their bottom line and they lose contact with the customers. We’re not saying cut the third party apps. In fact, we say keep them. According to the Fundera Food Delivery Statistics, online ordering is growing 300% faster than in-house dining. Third-party delivery services raise restaurant sales on an average 10-20%. Work to build your own in-house delivery staff and utilize the third-party for overflow.
- Logistics platforms – Thirdly, these platforms are popping up left and right. If you’re a delivery service, you’ve been using these platforms since the day you started. If you’re a restaurant or retailer, chances are you don’t know where to start. Either way, you must think about what’s important to you when picking a logistics partner. Do you want to be able to track the driver? Do you want it to give easy to read reporting? Can it be easily updated? User friendly? The list goes on. Here are a few we recommend. Radaro, Onfleet, Bringg, and Cartwheel.
- Partnerships – In any space you work in, partnering with the right companies will help you scale and help you stay competitive. When it comes to the food delivery sector, consider partnering with the right technology to continue to redefine your business. Partnerships can be the right logistics platform to integrate with, could be the right HR/admin platform to help manage your delivery workforce, or even the right restaurant partnership to share a ghost kitchen location. Partnerships are everywhere. You just have to know where to look and what makes most sense to you as a business owner.
- Delivery fees – We are also seeing delivery companies go away from delivery fees. However, in the restaurant delivery industry, when it comes to ghost kitchens and new technology, we might see delivery fees come back. According to the Fundera Food Delivery Statistics 33% of consumers say they would pay a higher fee for faster delivery. If you’re wary about adding a fee, we’re seeing bigger named businesses add subscription fees. Allowing a one time monthly fee for a $0 delivery fee. There are ways to get creative!
Change can be scary, but it can also be rewarding. Delivery isn’t going anywhere and this space is only getting hotter. If you don’t know where to start or have questions, with over 25 years of last-mile delivery experience, DDI is a great place to start. We have seen it all, from the dot.com movement, the big mergers and acquisitions to now. DDI can build, support and grow your business!