Operations

Study reveals how restaurants can increase profits with online orders, in-house food delivery

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June 12, 2024

A study by POS software provider HungerRush highlighted the importance of restaurants capitalizing on online ordering and in-house delivery trends to maximize profits in a challenging economic climate, according to a press release.

While third-party food apps offer additional revenue, their high fees eat into profit margins. The survey found that 66% of consumers use food delivery apps monthly, but over half (56%) would likely order directly from restaurants with a positive online experience.

Price is a major factor, as 67% of consumers are deterred from using third-party apps due to fees, with 35% avoiding them altogether.

The study suggests a significant opportunity for restaurants to capture in-house delivery business by offering a seamless online ordering platform with features like coupons, promotions, and real-time delivery tracking.

The survey also acknowledges the continued dominance of third-party apps. Of respondents, 29% reported increased usage of these apps over the past year. DoorDash remains the leader at 50%, followed by Uber Eats at 39%. Interestingly, the study found a generational divide, with 62% of Baby Boomers not using food delivery apps, while 71% of Gen Z use them one to four times monthly.

These findings emphasize the need for restaurants to adopt technology that integrates seamlessly with both in-house and third-party delivery options.

"It's never been more critical for restaurants of all sizes to find the right tech solutions to grow their business. The current quick service and fast casual dining landscape faces many challenges," Bill Mitchell, executive Chairman of HungerRush, and former president of global operations of Papa John's International. "Based on our expertise and this study's findings, we believe there is a lot of continued growth potential in food delivery. That's why we advise restaurants to choose tech that gives customers multiple ordering options for both in-house, online ordering, and third-party food ordering apps. Focusing on the customer experience is the number one way I've seen restaurants win in the past and how they'll keep winning in the future."