Future Trends in Food Delivery Business: What to Expect and How to Prepare!

Rapid Increase in Ghost Kitchens & Online Food Ordering Trends in Restaurants

Ghost kitchens, also known as dark kitchens, cloud kitchens, or virtual kitchens, are restaurants that get orders online and deliver them to customers. They don't have dine-in or walk-in services. These kitchens are growing quickly, especially since the COVID-19 pandemic, as many restaurants have started using this model.

Nowadays, many people make meals at home and sell them online through apps or their own websites. Customers also like ordering from ghost kitchens because they don't have to wait in lines. There are a lot of ghost kitchens now. China has the most, with 7500, followed by India, the U.S., and the U.K. More than 3 out of 4 people want to start using ghost kitchens in their business, and the industry is worth $60 billion and keeps growing. Apps like DoorDash, Foodpanda, Uber Eats, and Just Eat Takeaway have been big players in the food delivery market for a long time.

But now, 6 out of 10 people still like ordering food straight from restaurants. So, many famous restaurants and fast-food chains have started their own online food ordering and delivery platform. Brands like Little Caesars, KFC, Domino's Pizza, Chipotle, Pizza Hut, Burger King, and Tim Hortons let customers order from their websites and apps, which millions of people download every year. These food delivery app solutions also give out points and rewards that let customers get discounts on their orders, making them want to use the food delivery platform more.

Prominent Food Delivery Business Models in Industry Today

Food delivery has become an integral part of modern life, especially with the rise of digital technology and changing consumer habits. Several prominent business models have emerged in the food delivery industry, each catering to different needs and preferences. Here are some of the most prominent food delivery business models:

Aggregator Model: Aggregator platforms act as intermediaries between customers and restaurants. They list various restaurants on their platform, allowing customers to browse menus, place orders, and make payments online. Examples of aggregator models include Uber Eats, Grubhub, and DoorDash. These food delivery platforms earn revenue through commissions charged to restaurants for every order placed through their platform.

Logistics/Delivery-Only Model: Also known as ghost kitchens or virtual restaurants, this food delivery app solution focuses solely on food delivery without providing dine-in or takeaway services. These establishments operate from centralized kitchens, catering to multiple delivery orders simultaneously. Delivering-only models can offer competitive prices and faster delivery times by eliminating the overhead costs associated with maintaining a physical restaurant. CloudKitchens and Kitchen United are examples of companies that operate under this model.

Meal Kit Delivery: Meal kit delivery services provide customers with pre-portioned ingredients and recipes to prepare meals at home. Customers can subscribe to receive weekly meal kits tailored to their dietary preferences and cooking skill levels. Companies like Blue Apron and HelloFresh popularized this model, offering convenience, variety, and the satisfaction of cooking homemade meals without the hassle of grocery shopping.

Subscription-Based Services: Some food delivery businesses offer subscription-based models, where customers pay a monthly or yearly fee in exchange for perks such as free delivery, exclusive discounts, and access to premium features. Amazon Prime's grocery delivery service, Amazon Fresh, and Postmates Unlimited are examples of subscription-based food delivery services.

Full-Service Delivery: Full-service food delivery app solutions operate similarly to traditional restaurants but with a focus on delivery rather than dine-in customers. These establishments offer a wide range of cuisines, and comprehensive menus, and often employ their delivery fleet to ensure timely and reliable service. Domino's Pizza and Pizza Hut are examples of full-service delivery models, where customers can order directly from the restaurant for delivery to their doorstep.

Curated/ Specialty Food Delivery: Some food delivery businesses specialize in delivering specific types of cuisine or food items, catering to niche markets or dietary preferences. These businesses often partner with local suppliers or specialty producers to offer unique products that may not be readily available through mainstream delivery platforms. For example, Goldbelly specializes in delivering iconic regional dishes and gourmet food items from across the United States.

Food Delivery Trends 2024 to Look Before You Begin!

Many startups and small enterprises have expressed interest in the online food delivery app solution due to its promising future. They are keen to gain a foothold in this rapidly growing sector. However, as the stakes rise, the market gets primed for shocks. It's critical to have a thorough understanding of the business during these times. The following are the main trends that owners of food delivery business should be aware of:

1The Generation Z Is the Most Active Internet User

The largest portion of millennials' income, relative to all other generations, is spent on prepared food. They are the most significant demographic in the field of online meal ordering and delivery services just based on this fact.

Their fast-paced lifestyle and busy schedules make them gravitate toward websites that offer quick-service meal ordering and delivery. In three out of five cases, millennials either visit restaurants for takeout or use apps for food ordering and delivery, according to Technomic's Generational research. Millennials are the most significant consumer group since they represent the greatest portion of the US labor force and have rising purchasing power. However, meeting consumer expectations with simple ordering, speedy checkout, and prompt delivery are no longer the standards set by the industry.

Owners of food delivery businesses have their work cut out for them as they attempt to adapt to the shifting tastes of millennials. One method to address the difficulty is to introduce more delivery alternatives and ordering channels.

2Contactless Delivery remains a Top Concern

In 2020, the epidemic struck, and the restaurant business collapsed. Numerous businesses had to close and find new ways to cater to their clientele. Delivery of food was a common option. However, there remained safety issues regarding the handoff, which gave rise to the concept of contactless delivery.

When a package is delivered to an address without the driver seeing the recipient, this is known as contactless delivery. To document that it was delivered, they can place it on the porch or by the door and snap a picture. The customer can receive a text or email from automation letting them know their order has arrived.

Many customers still favor contactless delivery. You might not be dressed appropriately for the public, be sick, or be too busy working from home at times. Even if they have impaired immune systems, some people choose to avoid needless interactions. To keep customers happy, restaurants and grocery retailers should keep providing contactless delivery.

3Modern Delivery options

A committed delivery crew has been essential to the growth of the online meal ordering and delivery company since its inception. There is potential to improve the delivery process in terms of efficiency and speed, and efforts are being undertaken to create new delivery channels including drones, robots, and parachutes in food delivery industry.

We now have access to self-driving cars thanks to the development of artificial intelligence (AI) and machine learning (ML), and we're headed toward creating robots that will eventually be able to realize their full potential. To deliver food to their clients, JustEat and Starship Technologies in the UK have created moving pavement droids. Orders can be delivered within a 10-mile radius by the six-wheeled robot, which can travel up to 4 miles per hour. The droids use cameras and GPS signals to maneuver around the area. Once a verification code has been entered, consumers can pick up their orders.

Tacocopter was the first drone food delivery app solution to deliver tacos in the San Francisco area. In 2012, Burrito Bomber came after this. In 2016, Domino's drone trial came to an end when it took less than five minutes to deliver two pizzas to a couple in New Zealand.

4Eco-friendly Packaging and Sustainability are Growing in Popularity

Customer demand is the source of another of the most well-liked developments in the food delivery industry. The environment and supporting brands that are environmentally friendly are top priorities for millennials and Generation Z.

There's a good chance that meal delivery services have accumulated garbage. It's possible that bags, glasses, napkins, single-use utensils, and food packaging wind up in landfills. The United States receives millions of orders every month, and the amount of packaging that is not recycled can hurt the environment.

Combining the use of biodegradable products with minimizing packaging wherever practical is the solution. For instance, unless the customer specifically requests it, don't always include single-use silverware. Instead of bagging the order twice or three times, think about splitting it up into smaller parcels. In the upcoming years, putting sustainability first when it comes to delivery order packing will be increasingly popular. Numerous patrons will choose environmentally conscious food delivery platforms that actively work to cut down on waste.

5Integration of augmented (AR) and virtual reality (VR)

AR and VR are two more food delivery trends 2024 that are expected to upend the restaurant business. Eventually, using one or both of them, restaurants will:

Use gamification to engage customers: One method augmented reality (AR) can improve the experience is by creating a game that fosters greater customer participation and engagement. A simulator game, for instance, can amuse customers and ensure that they think of the restaurant's brand often. The game functions even better if it lets users compete with one another for coupons and discounts.

Make eye-catching prompts: Use augmented reality (AR) to wow hungry guests with lifelike, three-dimensional models of the menu items rather than one-dimensional photographs of the meal. Increase the number of possibilities for order customization: Another method augmented reality (AR) based online food ordering and delivery platform can enhance customer satisfaction by allowing consumers to add or remove items from a dish or sandwich while they are placing an order.

Monetize Your Food Delivery App Solution Through Different Channels

Rising client expectations are the result of all the advancements and innovations. As a result, it's critical for contemporary food ordering and delivery platforms to keep up with the latest developments in the sector, come up with strategies to raise client satisfaction levels and develop long-term revenue streams. If you're thinking about starting a meal delivery service, you should decide which revenue streams will allow you to make a profit and cover your costs. Typically, food delivery platforms generate revenue in the following ways:

1Cost of the Restaurant

For restaurants and other outlets to have their ads or menus included on your platform, you will charge them. They will be listed higher on the list if they pay more. You will then bring them the meal and highlight them on your app in exchange.

2Percentage of each Order's Commission

A 20–30% commission is often added to each meal order, and this commission is paid to the food delivery service. This implies that a certain percentage of each order will be transferred to your company.

3Delivery Charges Paid by Clients

Delivery costs are primarily covered by the customer. The food that is brought to them is paid for by them. The location to which the order must be delivered determines the amount.

4Commercials of Platform

This is a typical method of generating income. Businesses and brands decide to display their advertisements on the app, and to do so, they must pay a fee to the platform.

Is It Worthwhile Investing in a Food Delivery Business?

Without a doubt, the food delivery industry will be a lucrative venture because it is now one of the fastest-growing industries. As per Statista, the platform delivery industry is anticipated to attain a projected market volume of $340.80 billion by 2028, expanding at a compound annual growth rate (CAGR) of 4.79% between 2024 and 2028. By the same year, it is anticipated that the user penetration will reach 19.1%.

More precisely, it is projected that the global market for online meal delivery would reach $505.50 billion by 2030, growing at a compound annual growth rate of 10.3% between 2023 and 2030. Online meal delivery platforms' growing market share can be ascribed to their ability to provide consumers with convenience and accessibility.

The growing online food ordering trends have also been aided by rising internet and smartphone usage. All kinds of food delivery app solutions need to stay on top of timely and relevant food delivery trends. Being aware of the resources and technologies that other eateries are using now and may make available in the future will help you keep your advantage over competitors and preserve your market share.

Integrate your food delivery business with Quickdelivery to get the most out of your online and in-app meal ordering and delivery. Restaurants and online food delivery services constantly adjust to the shifting eating habits of their customers and the rapidly developing technological environment.

They use big data and the newest technology to bring clients a seamless meal ordering experience. Embracing Quickdelivery into your restaurant can help you remain ahead of the curve and capitalize on these food delivery trends 2024 by streamlining order processing and enhancing customer service.

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