Statistics show that in North America 60% of consumers order food online at least once a week.
30% of them use 3rd party delivery services between 2-3 times a week.
34 % of the consumers spend more than $50 per order when ordering food online. Digital ordering has grown 300% faster than dine-in traffic since 2014.
70% of consumers say they would rather order directly from a restaurant, preferring that their money goes straight to the restaurant not a third party.
57% of millennials say that they have restaurant food delivered so that can watch movies and TV shows at home.
59% of restaurant orders from millennials are take out or delivery. (https://upserve.com/restaurant-insider/online-ordering-statistics/)
millennials and post millennials are accounting for a majority of retail sales with these statistics rapidly increasing, this has been a contributing factor as to why many reputable mid sized to small restaurants without an exclusive online presence are closing down.
The main reason for these closures consist of either two things, either lowered revenues or lack of revenue growth with businesses remaining at a just break even point. This is a position a large number of mid to small sized restaurants have been in for the last 10 years and it only gets worse for the ones holding on to old habits.
So the big question is what are the minority new players doing that everyone else is not?
The answer is similar what has happened to the smartphone industry where the old players stuck to old habits, now Apple with 53.49% and Samsung with 28.32% considered new players now dominate 82% of the full market based on the mobile vendor market share in Canada -May 2019. (statcounter.com)
This trend may as well apply to all industries as ones that did not move with the innovative trends have faced difficulties, catching up is always costly.
The markets speaks for themselves…
Figure 1 illustrates a trend showing the increase in online orders from 2016, indicating how these numbers have quadrupled, thus predicting revenues for 2022 to be at $300 million which is double the $150 million from 2018.
As for restaurants, what some may not understand is that 3rd party service providers are collecting consumer data which the restaurants themselves do not have access to. On a 3rd party application, a consumer signs up providing a name, email, a phone number, and an address before placing 2-3 orders a week.
The 3rd party provider is in a position to fully observe a consumer’s buying habits.
Let us say for Example John likes burgers and once ordered from restaurants A, B and C on a 3rd party delivery service, the 3rd party service provider now has useful data that is valuable to burger restaurants.
A big burger chain restaurant then purchases this consumer data along with hundreds if not thousands sending them texts, emails, targeted fliers on burger specials with a 30% discount incentive for downloading their mobile application!
Then guess what happens after that? John downloads the app and gives them repeated business at least twice or thrice a week. (as statics above show that he likely spends over $50 per order). The big chain restaurant makes $150 per week from John alone yet Restaurant A, B and C are oblivious to the fact they have just lost a valuable customer. During lunch hour at Restaurant A, there are at times only 5 customers in the restaurant usually ordering between $12 – $30 meals, meaning that those 5 customers are equivalent to John alone.
Businesses such as Restaurant A open doors with hopes customers come through them, without anyway of controlling their traffic. They send out fliers and spend a fortune on advertising without understanding the market, however, it is unfortunate that the millennial and post-millennial wants more than just that to entice them. One may occasionally drop by when they are in the area due to their awareness of the good tasting food, but on a business standpoint how does that help Restaurant A? The answer is, It does not!
They do not understand John as a consumer thus he does not owe them any brand loyalty.
A restaurant can have the greatest food, but without offering exclusivity and without analyzing trends, it is a guarantee that the business will face difficulties or could perhaps close down sooner or later. Some are fortunate enough to be bought out by visionaries who appreciate the quality of their food.
There is no good way to explain it.
So where does Apps149 come in?
Apps149 is a company headed by young successful businessmen that do not only create software but are fully invested into the business scene. We have attended some of the worlds largest tech conferences and are continually learning from the best, picking up on business trends and running successful ventures.
We know that businesses close down by overlooking small factors, yet most have their eyes set on the wrong avenues of drawing in clientele.
One answer is that advertising does not have to be expensive especially when you know how and where to advertise.
A few crucial things we have learned are:
- People judge you based on your
- Their loyalty will come based on how you make them
- The taste of your food only accounts for 7% of your business, the experience is what matters the most… (Do not get this mixed up, the taste is important)
Apps149 offers restaurants/grocery stores with an exclusive service-based platform where they can have a mobile application on IOS & Android with their own name. Here they can take orders, analyze trends, collect useful consumer data, promote products, offer deliveries with a rider dispatch and can target their marketing strategies.
For Example, Restaurant A can now have a mobile application called “Restaurant A” which consumers can download, view specials, make orders for pick up or delivery by just making a few finger swipes. Restaurant A can see that John has ordered 3 burgers from them, now when there is a new burger special it would make sense for them to personalize something for John as they have his full name, email, address, and phone number.
This becomes a convenience for John as he now has a restaurant that knows him personally, considers his opinion and makes exclusive offers to him. Does he not owe them some loyalty in return?
Friends like to buy from friends, how much easier could Restaurant A make it for him…
Apps149 also offers promotional packages helping businesses reach a wider clientele through ties in our business network, commerce exchange platforms and also through social media.
We also have a separate department that specializes in developing websites, custom applications, social media marketing, drafting out business/personal contacts, graphic designing, creating marketing material and offering photography services to businesses.