Food Delivery App Strategy For Restaurants
The rise of food delivery apps has transformed the restaurant industry in ways few could have predicted a decade ago. Platforms like UberEats, DoorDash, and Grubhub have become household names, reshaping how consumers access food and challenging restaurants to adapt to a new digital frontier. With convenience now a top priority for diners, these marketplace platforms have shifted consumer expectations from traditional dine-in experiences to on-demand meals delivered straight to their doors. For restaurants, this evolution presents both an opportunity and a challenge. To thrive in this competitive landscape, a strategic approach to food delivery is essential—not just to keep up, but to maximize profitability and build a loyal customer base.
The Growth of Food Delivery Marketplaces & Industry Trends
The food delivery market has exploded in recent years. According to industry reports, the global online food delivery market is projected to exceed $223 billion by 2027, driven by a compound annual growth rate (CAGR) of over 10%. In the U.S. alone, platforms like DoorDash and UberEats have reported record-breaking order volumes, with millions of consumers opting for delivery over dining in. This shift reflects a broader change in consumer behavior: convenience now trumps ambiance for many, especially younger demographics like millennials and Gen Z.
As competition heats up, restaurants must find ways to stand out. Joining third-party delivery platforms offers access to a wider audience, but it comes with trade-offs. High commission fees—often ranging from 15% to 30% per order—can eat into profits, making it critical to weigh the costs against the benefits. Successful restaurants differentiate themselves by optimizing their menus for delivery, offering unique items, or leveraging data to refine their offerings.
Operational Metrics and Their Impact on Your Business
To succeed on food delivery platforms, restaurants need to track and optimize key operational metrics. Here’s what to focus on:
Key Metrics to Monitor:
- Order Volume and Trends: Understanding peak times and seasonal shifts helps with staffing and inventory planning.
- Average Order Value (AOV): Encouraging upsells (e.g., sides, drinks, desserts) can boost revenue per order.
- Delivery Time and Order Accuracy: Fast, accurate deliveries improve customer satisfaction and retention—mistakes or delays can lead to poor reviews and lost business.
- Commission Fees and Profitability: Regularly assess whether platform fees align with your margins.
Ways to Optimize Performance:
- Streamline Kitchen Operations: Designate a delivery-specific workflow to avoid bottlenecks during busy periods.
- Manage Inventory: Stock up for high-demand items during peak hours to avoid sellouts.
- Use Data Analytics: Most platforms provide dashboards—use them to identify top-performing dishes, track customer preferences, and refine your strategy.
By focusing on these areas, restaurants can turn delivery into a profit center rather than a cost burden.
Marketing on Food Delivery Marketplaces
Paid Promotions & Sponsored Listings
Visibility is everything on crowded delivery apps. Paid promotions can push your restaurant to the top of search results, increasing order volume. However, these come at a cost. A 10% discount or free delivery offer might drive traffic, but if margins are tight, the return on investment (ROI) may not justify the expense. The key is to experiment with different promotions—first-time order discounts, percentage-off deals, or free delivery—and track which ones deliver the best results.
Running Ads to Drive More Orders
Beyond in-app promotions, external advertising amplifies your reach. Google Ads can target local customers searching for “food delivery near me,” while Facebook and Instagram ads let you showcase mouthwatering visuals. Re-targeting past customers with tailored offers (e.g., “We miss you—here’s 15% off your next order”) is especially effective for driving repeat business. Test different offers to see what resonates with your audience.
Bounce Backs to Build Loyalty
Many of the platforms allow you to send digital bounce backs designed to encourage customers to order from you again. We strongly encourage adding coupons and discounts to your delivery packaging to nudge customers toward your own online ordering system, where you avoid third-party fees. For example, include a flyer with every delivery offering $5 off their next direct order. Pair this with offers to subscribe to SMS or email campaigns to keep your restaurant top-of-mind.
Responding to Customer Reviews, Why Reviews Matter
On delivery platforms, reviews are a make-or-break factor. High ratings boost your visibility—marketplaces often prioritize top-rated restaurants in their algorithms—while poor reviews can sink your ranking and erode trust. A single negative comment about cold food or a missing item can deter potential customers, making review management a critical part of your strategy.
Best Practices for Handling Reviews
- Respond Promptly and Professionally: Address negative feedback with an apology and a solution (e.g., “We’re sorry your order was late—please reach out for a discount on your next one”). This shows accountability and care.
- Encourage Positive Reviews: After a successful order, politely ask happy customers to leave feedback—many platforms allow you to automate this request.
- Act on Feedback: Use criticism to improve. If multiple reviews mention soggy fries, tweak your packaging or menu prep.
By treating reviews as a tool for growth, you can enhance your reputation and attract more orders.
Food delivery apps are no longer a passing trend—they’re a cornerstone of the modern restaurant industry. To succeed, restaurants must approach these platforms strategically, balancing visibility, profitability, and customer satisfaction. From tracking operational metrics to leveraging paid promotions and building loyalty through digital bounce backs, the opportunities are vast for those willing to adapt. As consumer preferences and market trends evolve, continuous optimization will be key. Embrace the challenge, refine your approach, and turn food delivery into a thriving part of your business.