What are the benefits of setting up a restaurant online ordering system?

Pandemic has brought considerable changes in the way the F&B industry does business. The dining business took a hit due to lockdown and health safety concerns, and the focus shifted to takeaways, deliveries, and online orderings revenue streams. The online ordering trend is booming even before the pandemic and shows no sign of decline even as the pandemic wanes. While food aggregators are top runners in online ordering restaurant online ordering system are making their presence felt recently.  

Compounded growth rates of the food delivery market in India are expected to expand to 30.55% based on revenue and 10.19% based on the number of users during 2022 – 24. The expected revenue generated will be INR 1335 billion with a user base of 300 million by 2024. Bangalore seems to lead the trend of online ordering accounting for 30% of the total share, followed by Delhi NCR, Mumbai and Hyderabad. Most online orders are placed on mobile phones, and the availability of a cheap spectrum has only helped its spread.  

The majority of online food ordering is channelized through a Food aggregator. In the last few years, the restaurant is also building its own platforms to enable direct booking rather than third-party integrators. The article below explains the importance of the restaurant’s online ordering system and why food businesses are so keen on promoting this medium. 

What is a food aggregator?

Food aggregators are not news to the modern restaurants; they had made their presence felt in 2014 and are still very popular. Compared to the old-fashioned restaurants’ food catalogues, the digital dashboard of a food aggregator is much more enticing. An unlimited number of restaurants and a diverse array of cuisines are available at your fingertips. The vivid display, attractive interface, and many options trigger a shopaholic in the clients and lure them into placing an order. 

Food aggregators organize restaurants as per cuisines, locations, veg or non-veg option, and delivery time to make it easy for the client to choose. The best part is the food aggregator integrates the payment collection on the app; the payment is collected online or offline as per the client’s request. A monthly remittance is made to the restaurants after deducting their aggregator commission. The restaurant’s only task is to deliver the order to the food aggregator delivery rider. 

Advantages of tying up with Food aggregators:-

Paid promotion on Food aggregator highlighted in yellow

The prime importance of tying up with the food aggregator is the visibility a restaurant gets on a food aggregator platform, especially near the outlet’s location. If the outlet wants to boost its visibility, it can run ad campaigns on these platforms. A targeted campaign and offer special discounts to these specific groups. Another significant advantage is that food aggregators have a delivery fleet that the restaurants can utilize. Several cloud kitchen and food outlets that don’t have their fleet of delivery staff can use their service and save on labour costs. 

The third and most crucial plus point is the accessibility a Restaurant gets to the customer user base of the Food aggregator. By collaborating with food aggregators, the restaurant can start the business as soon as they set up the kitchen and safety hygiene. A restaurant can even run promotions if it’s new to improve its visibility. 

Disadvantages of using Food aggregators :-

While food aggregators have often brought a new source of revenue to the restaurant, overreliance on them has its drawbacks. The food aggregators charge a commission on the food sold on their platform. Earlier, this commission was nominal i.e.around 10% but has now gone up to 20-25% causing much discomfort among restaurants. 

Food aggregators do not forward the client data to restaurants. Restaurants cannot use the data for their marketing campaigns, and this makes it increasingly difficult for them to retain the customers that the food aggregators generate. Many other arm-twisting tactics food aggregators use have made restaurants realize not to put all the eggs in one basket. 

What is the restaurant online ordering system?

Restaurant online ordering menu

Food aggregators give visibility to the restaurants, which helps a new business; however, as restaurants expand, they find it difficult to earn profits. Due to these limitations, restaurants are setting up restaurant online ordering system, which can take a booking from the clients both online and offline. The client can access the menu by scanning the QR code or clicking on the link provided by the restaurant. Once the order is placed, the payment can be made through an integrated payment mechanism.

Below mentioned are some of the benefits of a restaurant online ordering system.

More profits:-

The orders received on the restaurant’s online ordering systems don’t have to provide hefty commissions to food aggregators. In this way, they can easily keep a profit for themself and utilize it for the restaurant expansion. Tying with last-minute logistic startups like Dunzo makes it possible to deliver the food directly to the client even if the food outlet does not have its delivery guys.

Improve customer loyalty:-

Direct online ordering systems provide an opportunity for the restaurants to win back the loyalty of their customers. One of the biggest negatives of a food aggregator is its inability to deal with customer complaints. They can add their personal touch to the booking like a thank you note, providing a dessert or appetizers with high orders bookings, etc.

Flexible interface of a restaurant online ordering system? :-

Food aggregators have an interface that is uniform for all restaurants. A restaurant can tailor-make their own direct online ordering system adding columns for new information like clients’ allergies, the option to make food less spicy, and any special requests the client would like. The restaurant can avoid misfires due to miscommunication and thus save on wastage and better the customer experience.

Better control over orders:-

Since only a few players control the food aggregator vertical, it becomes easy for Restaurants to be pressurized to give more discounts in return for visibility. Food aggregators provide the top slots in their interface to restaurants that offer additional discounts or are willing to do paid promotions with the aggregators. By having their own direct online ordering system, restaurants don’t have to indulge in unsustainable discounting to attract orders. They plan and launch promotions without any undue pressure from the third-party aggregator. 

Posify, the Point of Sales system of SupplyNote, enables the restaurant to integrate the third-party aggregator on the POS. On integration, the entire process of receiving the order and executing the same becomes very seamless. On the other hand, if the food business wants to create a restaurant online ordering system Posify has an option to do the same also. 

A free demo on Posify will be a great first step for a restaurant to set up a restaurant online ordering system. To learn more, click on the link to book a demo. 

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