In a recent revelation of stunning revenue for the largest market segment, restaurant-to-consumer delivery of $94.385 million with a market size of $58.008 million in 2019 worldwide has given it a key business target for many vying to dip their toes into the online sector. Food delivery.
Little do they know that food delivery business is not just a bed of roses for aggregators and restaurants as well! There are some upheavals and challenges that usually remain in the shadows.
Here we take a peek at the most dynamic set of challenges that have kept the food delivery business on edge.
- Logistics deadlock
The challenge is to allocate delivery personnel close to areas of high demand and areas of low demand. The challenge comes when the country is not clear like – “What is the probability of getting the highest number of applications from that particular region?” This creates a dilemma.
Initially, the number of delivery personnel required and how they will be able to take the food from the point of receipt to the point of delivery, as the quality of the food may be affected if the points of receipt are far from the point of delivery.
Pro tip:Restaurants should include only those food items on the menu that can withstand the required temperature with minimal compromises in change.
- Longest customer waiting time
If the period between online orders being processed and then delivered takes longer than expected, it can break the patience of any hungry customer, reducing the chances of them returning afterwards.
- Inability to handle high demands
There are times when restaurants are very popular for their offerings and suddenly start receiving orders in large quantities which makes it difficult for them to manage the online clientele along with the clients at the same time.
Pro tip: In such cases, restaurants should be strategic with the menu and start by offering a small menu at first as opposed to offering a great deal of variety. And as far as order flow is concerned, restaurants must create spaces that can easily provide order flow.
- Suspicious pricing model
In the food business, it is near impossible to be precise in crafting a profitable business model. There is no guarantee whether price cuts will lead to increased sales because this business is entirely dependent on customer expectations.
We cannot deny the fact that these aforementioned challenges also represent growth opportunities for those who have made smart efforts to rectify them. create a file On-demand food delivery app It can help restaurants manage and automate reservations, linking the process.
So, apply the right technology and launch your journey to a hurdle-free business.
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