In the recent startling revenue revelations of markets’ largest segment, Restaurant-to-Consumer Delivery that amounted to US$94,385m with a market volume of US$58,008m in 2019 worldwide has given a major business goal to many vying to dip their toes in online food delivery segment.
Little do they know that the food delivery business is not a bed of roses for aggregators &restaurateursas well! There are certain turbulences, challenges that usually stay in the shadows.
Here we take a sneak peek upon the most dynamic set of challenges that have kept the food delivery businesses on the edge.
- The Logistics Quandary
The challenge lies in allocating the delivery personnel close to the high-demand areas and low demand areas. Challenge lies when the state is not clear like- “What is the probability of getting the highest number of orders from that specific area?” This creates a dilemma.
Initially, how many delivery personnel will be required and how will they manage to take the food from pick-up point to the delivery point, since the quality of the food may get compromised if the pick-up points are far away from the delivery point.
Pro tip:Restaurants should include only those food items in the menu that can withstand the required temperature with fewer compromises in the change.
- Longer Customer Waiting Time
If the period between orders placed online to order getting prepared and then delivered takes more than the expected time, it may break the patience of any hungry customer, which will thereafter lessen the chances of them returning back.
- Incapacity To Handle High Demands
There are times when restaurants get extremely popular for their offerings and suddenly start getting orders in large volume which makes it difficult for them to manage the online customers’along with walk-in customers simultaneously.
Pro tip: In such cases, restaurants should be strategic with the menu and begin with featuring a small menu at first on contrary to displaying a great deal of variety. And as far as the influx of walk-ins is concerned, restaurants should create spaces that can easily supply the flow of orders.
- Dicey Pricing Model
In the food business, it is next-to-impossible to be accurate in crafting a profitable business model. There is no guarantee if the price cuts would lead to higher sales as this business totally depends upon customer’s expectations. online food delivery