The restaurant franchise industry has undergone a significant transformation in recent years, and one of the key contributors is the rapid growth of online delivery services. While there’s no true substitute for the dine-in experience, the ability for customers to enjoy their favorite meals in the comfort of their own homes cannot be overstated.
These days, the convenience of online ordering and delivery has become the norm, and restaurant franchises aren’t just adapting to stay ahead, but also reaping the wondrous rewards that come with it. Let’s find out how.
HOW ONLINE DELIVERY SERVICES HAVE GROWN
Many popular online delivery services such as Grubhub, Uber Eats, DoorDash and Postmates have disrupted the traditional restaurant franchise model in a good way, by providing customers with the ability to order food online, and have it delivered to their doorstep. The sheer convenience has led to a significant increase in online ordering habits, with many customers opting for the ease and speed of delivery over dining in.
This shift in consumer behavior has given restaurant franchises a reason to pause and rethink their business strategies, which first came in handy during the Covid-19 pandemic. The forced shuttering of businesses for social distancing and isolation meant that restaurant franchises needed to adapt fast in order to stay afloat. While in-house dining was simply out of the question, pick up and delivery orders were not, and businesses soon capitalized on this lifeline to tie them over until re-opening.
THE IMPACT ON RESTAURANT FRANCHISES
The rise of online delivery services has had a profound impact on restaurant franchises in more than a few key ways, including:
1) Increased Competition
Customers now have access to more dining options than ever before, and this increased competition has forced restaurant franchises to differentiate themselves through quality menu offerings, pricing, and customer service.
2) New Revenue Streams
Online delivery services have created brand new revenue streams for restaurant franchises. By partnering with these services, franchises have learned to increase their sales and reach a wider audience.
3) Changes in Menu and Operations
To accommodate online ordering and delivery, restaurant franchises have had to adapt their menus and operations, including optimizing menu items for delivery, streamlining kitchen workflow, and investing in technology to manage online orders.
4) Shifting Marketing Strategies
Restaurant franchises are now focusing on digital marketing strategies such as social media and email marketing to reach customers, and promote their online ordering and delivery services.
HOW YOUR FRANCHISE LOCATION CAN THRIVE
If you already own a franchise, or are interested in joining the business, you can capitalize on the online order initiative in a proactive manner, allowing you to adapt to the changing landscape. The solidification of online ordering has already occurred, and that has opened up an entirely new revenue stream for franchisees, meaning you can immediately take advantage of this new development from the first day you open your doors.
The trick, as always, is to remain proactive while embracing new trends. It won’t be enough to simply train your kitchen staff to handle the influx of indoor diners. Rather, you’ll need to develop a flexible team capable of handling online orders in a quick and timely manner, as well. Plus, it’s a solid investment of your time and effort in case of another possible pandemic and future lockdowns. Even without the threat of another series of lockdowns, the ability to tap into two revenue streams at once is definitely worth it.
CONCLUSION
Online delivery services are here to stay, and that’s a good thing. While it does require a bit more planning and attention to detail, the benefits are numerous. By embracing this option for the sake of your customers, you can propel your franchise location to new heights, or reach your initial goals for success at a much faster rate.
St. Louis Bar & Grill has proudly embraced online delivery services so that our patrons can enjoy our menu offerings any time they desire. We have the know-how and experience to set up new franchisees to succeed, and we invite you to apply to join our franchising family. Contact us today, and let’s work together to open yet another excellent St. Louis franchise location.