Before we dive into this article, I want to expand on the difference between onDemand Delivery vs Third party delivery. OnDemand delivery companies are companies that charge a fee for restaurant businesses or direct customers to delivery food to them while 3rd party delivery are companies that provide a platform for restaurant to sell them food and hence customers have to go to the third party platforms to place their which then allows the platform to both charge the restaurant and customer a fee for both the service and delivery of the food.
Here are some of the reasons restaurants are forced to use 3rd party delivery
Exposure. The platform gives restaurants a way to get exposure. Customers already have apps like UberEats and DoorDash installed on their phone and can easily search for the neareast restaurant close to them based on their criteria.
Delivery. Lots of Restaurants dont have a delivery network and depend on these companies to do delivery for them.
Food Packaging. Lots of restaurant do not want to invest into the right type of marketing and packaging for their foods and instead will use the packaging from 3rd party food delivery companies
Payment Processing. 3rd party food delivery companies handles the payment processing for restaurants which makes it one less thing to deal with.
Communication Method. 3rd party food delivery apps come with a messaging feature that allows customers to directly communicate with the restaurants. This interaction makes it easy for restaurants to connect and fix customer issues as they arise
Here are some of the reasons why Restaurants need to move into onDemand Delivery Solutions
Cheaper. 3rd party food delivery companies charge about 20%-30% to delivery food to customers. This is a huge lost to both the customer and the restaurants and their have been studies that this has cause lots of restaurants to get our of business. OnDemand delivery companies like Postmates and ShiftPixy provides ondemand delivery for restaurant via their Api
BrandAwareness. Using an ondemand delivery solution allows restaurants to provide their own online ordering system or mobile ordering system and even packaging. They can brand their website or mobile app and allow their customers to directly place orders from their platforms. This will allow a restaurants to build a long term brand and connect to their customers even better. Orderax is a company that provider Mobile ordering app to restaurants.
Control. Restaurants are able to control every aspect of their business except the delivery. This allows them to directly connect with their customers .
Reduce loss of customers to competitor. Business with over 50% of repeat customers lose their customers to competitors because of the 3rd party food delivery companies.
Get Payment Faster. Restaurants can directly connect to payment processing platforms like Stripe or Square to process their payment via their Api. Because of this direct connection, Restaurants can get paid faster and as early as the next day.
In conclusion, ondemand delivery is not feasible for all restaurants but restaurants with 50% or more repeat customers should use an ondemand or inhouse delivery companies because this will save them about 20% compared to 3rd party delivery fees. New restaurants or restaurants that require exposure will benefit from continuing to use 3rd party food delivery services.
In this article we will list the top online ordering system currently in the market. This list doesn’t include 3rd party food delivery platforms like UberEats and DoorDash. We have left out these 3rd party delivery platform that take away upward of 20% fees which then cuts Restaurant owners profits.
First Fact: According to Bulk of Restaurant Digital Orders Are From Mobile Appsrestaurant digital orders have grown at an average annual rate of 23% since 2013 and will triple in volume by the end of 2020, and the majority of digital orders , 6 out of 10 are by mobile apps.
The big and chain companies like Starbucks, Tim Hortons, and Wendy understand the power of having their own Custom Mobile Ordering App and have subsequently increased their profit margins. Unfortunately, lots of independent & smaller companies have struggled to get their own mobile app mostly because of cost of developing one.
It has been widely reported that Starbucks Loyalty Program & their mobile ordering app has helped propel the company into being a leader in the coffee shop industry. Their approach has laid out a pretty simple business model for the rest of the industry – Go Loyalty Program with a Mobile Ordering App.
Tim Hortons is lunching their loyalty program across Canada in 2019. They are going to be rolling out a physical loyalty card as well as integrating it to their mobile app. This is exciting for Tim Hortons, I believe that if done properly, it can help boost sales especially mobile ordering sales. It is also exciting to see how they approach the roll out of this program across their customer base and how it will size up with the Starbucks Loyalty Program. Check out the full interview of Tim Hortons CEO by BBN Bloomberg
Check out this article done by CBC. They reported that three Canadian Tire locations in Toronto has gotten rid of their self checkout machines because they were “a pain to use”. It is difficult for me to comprehend the reason behind as I simply see this as a Human vs Machine Efficiency issue. Most people will agree that Machines overwhelms Humans decisions when it’s designed properly.
I should say that the stores had some great points and reasoning behind why this isn’t currently working for them but I must also say that instead of completely removing the self-checkout machines, they need to take a closer look at the machines and the possibility of getting better machines with their software and hardware working greatly together. I have used self-checkout machines at these so called big retail stores, and I must say I was not impressed. In my naive opinion, 80% of the self-checkout machines I have used felt so wacky, had a bad user experience (UX) and were not intuitive. Check out the article at cbc.ca
Welcome to the Orderax Blog. We are here to give you an up to date information on the Restaurant, Coffee, Cannabis and Cafe business in general. Our blog will be focused on the latest technological trends and news currently in these market.
Orderax allows businesses that want to sell their products online with their own custom Ordering App. We serves Restaurant, cafes, coffee shops, Cannabis or stores that wants to allow their customer to order with their app.