Learn More About Food Delivery Software
What is Restaurant Delivery/Takeout Software?
Restaurant delivery/takeout software provides restaurants with a marketplace to showcase their menu or a means to embed an online ordering feature in their website. This offers businesses an opportunity to reach a broader audience of customers. For restaurants aiming to increase their reach, this software can expand their visibility past their local network. This not only provides users with more opportunities to drive sales but also gives customers greater access to a variety of restaurants and more options to order from.
In addition to creating new business opportunities, restaurant delivery/takeout systems provide key features at each stage of the ordering and delivery process. This software often provides marketing tools to help create menus, boost online presence, and stand out from competitors. Additionally, restaurant point of sales (POS) tools help manage online orders and payments from customers. From the moment a customer places an order, the front-of-house staff and kitchen employees are informed immediately, increasing the efficiency of receiving and preparing delivery and takeout orders, thus eliminating wasted time. The customer is also informed at each stage of the process for full transparency, helping businesses run smoothly and stay accountable with expected delivery times.
What are the Common Features of Restaurant Delivery/Takeout Software?
The following are some core features of restaurant delivery/takeout software:
Order management: Order management is key to keeping a restaurant running smoothly from preparation to delivery. Front-of-house staff and kitchen employees are able to see a queue of orders that have been placed and update order statuses accordingly. There are ordering features that also provide customers with real-time updates on canceled orders, orders out for delivery, and completed orders.
GPS tracking and geofencing: Restaurant delivery software have GPS tracking features and geofencing technology to help track orders at each stage of the delivery process as well as provide accurate delivery time estimates. This software uses driver-tracking features to give customers real-time updates on their delivery order. Additionally, the GPS software equips delivery drivers with route optimization tips providing them with the most efficient routes for faster deliveries.
Marketing: Marketing is an essential aspect of food delivery software as it offers restaurants additional ways to reach and connect with customers and sets them apart from competitors. Many restaurant delivery/takeout software has email marketing tools and marketing integrations to help businesses stay top of mind for new or returning customers. Additionally, food delivery software offer push notification features notifying consumers of any discounts to drive more activity to the app.
Point-of-sale (POS) integration: Online ordering software can often provide POS integrations allowing restaurants to streamline all of their customer ordering data and history in one place. Online ordering systems with restaurant POS systems help to manage online transactions while providing a seamless experience when integrating this software into their workflow.
Loyalty programs: Loyalty and rewards programs are integral to maintaining and growing the customer database. This software can provide loyalty management tools to create membership programs and monthly subscription plans where loyal customers get rewarded each time they order. Most restaurant delivery/takeout software offers promotions for first-time customers to incentivize and adopt new users. Businesses can also host their own promotional opportunities and rewards for their returning customers.
Reviews and ratings: Reviews and ratings are an important feature of food delivery solutions, as it helps restaurant businesses rank in a competitive marketplace and gives customers a chance to leave honest reviews. This offers restaurants valuable insight into how their business compares to competitors, provides metrics to monitor their success, and elicits feedback directly from the consumer.
Online menu creation: Restaurant delivery software can often provide menu creation features to help users customize their digital menus via banners, images, etc. This can help businesses become more discoverable by customers and differentiate from competitors.
What are the Benefits of Restaurant Delivery/Takeout Software?
Reach more customers: An immediate benefit of using restaurant delivery/takeout software is the increased reach that comes with joining these online delivery platforms. Many customers join food delivery apps to access a greater variety of restaurants that cater to their changing needs and appetite from the comfort of their homes.
Broader delivery range: Delivery/takeout software enables restaurants to partner with delivery drivers expanding the delivery zone and customers they can reach. This allows for businesses to fulfill a larger number of orders by outsourcing their delivery efforts, especially when partnering with multiple ordering takeout software.
Faster deliveries: With optimized delivery routes, GPS tracking, and geofencing predictive capabilities, this software provides businesses and customers with accurate and real-time delivery estimates to ensure that orders are fulfilled on time. Estimated time of arrival (ETA) accuracy is key when it comes to online delivery as it builds customer trust and loyalty.
Customized customer promotions: A perk of working with food delivery software and apps is that it provides customized promotions for each customer. Customers gain access to different promotions that become available to them to increase their participation and drive revenue.
Customer data and insights: Restaurants have access to key information on ordering behavior and preferences. Oftentimes, this software offers customized dashboards with data on customers and performance.
Boost revenue: Working with delivery apps can provide a fast return on investment (ROI) as restaurants can see an immediate revenue increase due to the expanded customer reach, access to new customers, increase in delivery locations and range, and overall boosted visibility. This all factors in the improved restaurant sales and growing revenue.
Who Uses Restaurant Delivery/Takeout Software?
Small or local restaurants: Small or local mom and pop restaurant owners would be ideal candidates for online food delivery services in order to reach a larger number of customers, boost marketing and visibility, and fulfill a greater number of orders. Most smaller or local restaurants are limited when it comes to their staff as they have smaller teams. Being able to work with delivery services provides access to an external delivery operation as well as food delivery management software to expand their business and revenue.
Chain restaurants: It is important for consumers to be able to order from their favorite restaurants that they frequent. Being able to access online menus and place orders from the comfort of their home from restaurants they are familiar with will not only help maintain customer loyalty but also create an additional revenue stream for larger well-known, and established restaurants.
Software Related to Restaurant Delivery/Takeout Software
Related solutions that can be used together with restaurant delivery/takeout software include:
Restaurant POS systems: POS software helps restaurants process orders and payments for multiple transactions at once. Restaurant takeout software can often integrate with external POS software to streamline online orders with in-house ones or offer its own POS system for businesses to use.
Restaurant management software: Restaurant management software is used by employees to manage all aspects of the business—whether it's inventory,analytical tracking,payroll, ororder processing, this software is key to keeping restaurants running smoothly. Some delivery software can offer its own management features or integrate with external restaurant management solutions.
Challenges with Restaurant Delivery/Takeout Software
Restaurant delivery/takeout software solutions can come with their own set of challenges.
Late delivery: Despite the predictive ETA estimates and GPS tracking, late deliveries are bound to occur at some point. When restaurant businesses use delivery software solutions, the delivery systems and processes are beyond their control. Most common delays occur when drivers can’t locate the drop-off location, causing a downstream of late deliveries for additional orders they may have. Delayed deliveries can be detrimental to ensuring customer loyalty; however, choosing a platform that offers great customer service can mitigate some of these service-related challenges.
High fees: While food delivery businesses offer new streams of revenue for restaurants, it may come at a cost due to the high commission rates and fees that these software solutions charge. Some restaurants break even or are forced to increase their menu prices to cover the cost.
Upholding food handling standard: There is a standard of cleanliness and hygiene that restaurants are required to uphold that is extended to delivery drivers. However, delivery businesses can’t ensure that orders are consistently kept to a unified standard. Customers often complain and leave negative reviews about poor food quality as a result of improper food handling.
How to Buy Restaurant Delivery/Takeout Software
Requirements Gathering (RFI/RFP) for Restaurant Delivery/Takeout Software
In order to stay up to date with the growing demands of online food ordering, it's important for restaurants to choose the right software solution that fits their needs. The restaurant delivery/takeout software industry is expanding every year with more and more software available in the market, making it more competitive and difficult to determine the best platform to partner with.
When evaluating the best restaurant delivery/takeout software to purchase, buyers should use the following questions to help compare each solution:
- What are the costs and fees associated with this software (commission fees, subscription fees, etc.)?
- Is this software better for smaller or larger businesses?
- Is there a contract length? If so, how long?
- What are the requirements to set up the software?
- How many users are on the platform?
- What is the delivery range?
Answering the above questions will give buyers criteria to compare each software product once a product list is developed.
Compare Restaurant Delivery/Takeout Software Products
Create a long list
After the buyer has determined that their restaurant would benefit from delivery/takeout software, the next action item would be to develop a long list of the best options that are currently available in the market. Long lists help customers focus on gathering software that best fits their broadest needs. For example, some restaurant delivery software is best in bigger cities as they have access to more means of delivery options, whether its drivers, bikers, scooters, etc. In this case, working with a long list of software that is more popular in bigger cities would be ideal.
Create a short list
Once the long list is established, it’s time to narrow down the options by comparing the software based on specific feature requirements. Whether it is restaurant management features, POS integrations, or an all-in-one solution, shortening the list based on must-have features is an efficient way to get to one product. G2.com can help with providing unbiased, verified customer reviews to help make the final decision.
Conduct demos
If the short list isn’t as small as intended, then working with a sales representative to conduct demos is key, and the final outcome may come down to usability.
Selection of Restaurant Delivery/Takeout Software
Choose a selection team
Selecting the right team to help decide which food delivery software to implement is a critical part of the process, as purchasing this software for one’s restaurant business will affect internal processes. Not only will this team be tasked with identifying pain points but will also play a large part in the implementation of software.
Negotiation
During the last stages of the purchasing process, the determining decision often is between the cost and the contract. The commission rate should always be negotiated. If a buyer is intending to have a longer contract, vendors are more likely to provide lower commission rates, and in the long run, this would increase a restaurant’s profit margins.
Final decision
The final decision depends on the size of the business. Most restaurant owners should make the final decision on behalf of their franchise as it is an investment that will affect all aspects of the business.
Restaurant Delivery/Takeout Software Trends
Dark kitchens: Dark kitchens, commonly known as ghost kitchens or cloud kitchens, are restaurants that solely offer delivery or curbside pick-up. The rise of these businesses has disrupted the conventional ideas of how restaurants should operate as they completely eliminate the in-house dining experience and prioritize the deliveries. Although dark kitchens are much more common now, this has only been made possible as a direct response to the COVID-19 pandemic, where restaurants could only provide delivery services. If it wasn't for the pre-existence of delivery/takeout software, the restaurant industry wouldn’t have been able to adapt as quickly to the demand, provide a convenient way for customers to order online, and maintain a revenue stream for their business. Although ghost kitchens existed before the pandemic, it took this major shutdown to revolutionize the restaurant industry and change how they operate.
