TAKEAWAY & DELIVERY SELLING ONLINE COVID 19 AND THE DELIVERY MARKET The online food delivery market was steadily The past year has also changed consumer growing prior to the pandemic. attitudes towards dining out. With COVID-19 encouraging trends like working from home But COVID-19 has accelerated the growth and supermarket deliveries, the frequency of online food delivery by nearly three years, of in-restaurant dining is expected to return according to Morgan Stanley. Pre-pandemic, to lower levels compared to before the online food delivery was expected to reach pandemic. It’s clear that restaurants need to be 15% of eating out spending in the USA in 2025 prepared to cater to this shift away from dining – and it’s now expected to achieve 16% market out by strengthening their online food delivery penetration by 2022 instead. strategy. Projected online delivery penetration as a share of total ad- Proportion of consumer spending on food, out of home dressable market versus in-home Revised estimates Estimate before covid Food out of home Food at home 2019 2020 2021 2022 2023 2024 2025 2010 2012 2014 2016 2018 2020 2022 Data from Morgan Stanley, 2020 Data from Morgan Stanley, 2020 24 DELIVERY SOFTWARE Prior to the pandemic, third-party delivery platforms like Deliveroo, Uber Eats, or Just Eat were the main enablers of online food delivery. But these platforms have often found themselves under fire for their steep commissions. 2020 fuelled the growth of cheaper alternatives in the form of online ordering systems (OOS), including StoreKit Takeaway. An OOS lets restaurants sell food online without the costs of a delivery platform, but without their marketing benefit. Today, many restaurants conduct a hybrid approach. Look at the table below to see how the two systems handle things differently: ONLINE ORDERING DELIVERY PLATFORM SYSTEM One of the main benefits of Generally, you need to using a third-party delivery promote your StoreKit. platform is increased However, if yours are mostly EXPOSURE exposure. In 2018, Just Eat repeat customers, it’s probably alone processed 221.2m not a problem to get them orders in the UK. They do navigating directly. Google My expand the number of people Business & Facebook page who see your restaurant. links are the first step. Delivery platforms generally StoreKit shows you who your run loyalty schemes for customers are and can show OFFERS & themselves. There are some you their favourites. It allows LOYALTY “repeat order” buttons, you to tailor loyalty and however. discount offers to different customers. The sky’s the limit! It’s generally not possible A great OOS should have for restaurants to insert their enough flexibility to leave your imprint, and enough VISUAL own visual style. The delivery platform wants to own rigidity so that it always looks BRANDING the customer relationship, great. meaning they deliberately reduce your visual brand touchpoints. The delivery platform will StoreKit integrates with a third- DRIVERS provide the drivers and hire party courier system which them. charges 10%. Alternatively, you can hire in-house. 25 If a customer complains to You’ll handle customer a delivery platform, they will communications yourself, handle it. This sometimes including delivery complaints. COMPLAINTS means reimbursements, That means you’ll know when but a reimbursement is no something went wrong, and longer guaranteed by these you’ll get to represent your platforms. own brand. Delivery platforms have their StoreKit’s feedback function own internal system of review, is just for you when it’s 3 stars which users can sort by. or less. On the other hand, REVIEWS positive feedback will cue our system to invite the customer to leave a review on Google, and will send them the link to do so. 30% of anything processed StoreKit charges 2.9% + 20p is acceptable as a cost of professing fee on orders. acquiring a new customer (CAC). But it’s intended as a In addition, delivery is available COST tax on existing customers who on the StoreKit platform, keep coming back. It’s too and our third party couriers much, and generally requires usually charge around 10%. you should put up your prices. This is a much cheaper way of doing takeaway, and leads to a much healthier margin. THE CASE FOR A HYBRID APPROACH Third-party platforms are a crucial means of attracting new customers – and so for most restaurants, not using them at all isn’t a viable option. But the takeaway experience starts with a menu, and that menu should communicate your restaurant’s character and establish a connection with your customers. The homogeneous interface of a restaurant marketplace can struggle to achieve this. Rather than choosing one or the other, many restaurants will opt for a hybrid model, combining the wider reach of a third-party delivery platform and the more close-knit relationship with customers that an in-house solution makes possible. 26 Simple / Effective StoreKit is mobile ordering software designed to be used in-store and from home. That makes it the first point-of-call for online ordering software, and a great way to get your customers ordering from you without the fees charged by Deliveroo. In fact, StoreKit charges just 2.9% +20p to accept an order, and delivery services via our integrated courier app come to around 10%. (Or you can always deliver yourself!) That means that you can cut your bill in half by using StoreKit. To learn more about whether StoreKit is right for you, click on the button below to go to the StoreKit Takeaway landing page! “Then StoreKit came along ... and hallelujah” “Quite honestly, game changing” “Ridiculously easy to use” CLICK HERE! “A cracking bit of software” 27 Deliverect is an “aggregator”, meaning it’s a software which sits between multiple different spoke softwares and collects the data together. That makes Deliverect its own kind of “hub”, where the point-of-sale is another hub – the difference being that Deliverect is oriented towards delivery. In the soup of different overlapping features and approach. How has the pandemic affected the way people select their delivery software? “The accelerated growth of the online so many restaurants took menus online, food delivery marketplace this year has interacted with customers through new made restaurants realise that being avenues, and opened up new channels online is the only way to survive at times to take orders and payments. In an when customers can’t physically dine in omnichannel restaurant, customers the restaurant. But more than that, many move between channels seamlessly, of our new customers in 2020, having not getting a consistent experience previously offered delivery, told us that whichever way they interact with the the results from delivery and takeaway restaurant. Data flows seamlessly orders were so good, they would continue through the system so it can be put to using online channels even as dining good use throughout the business, from rooms reopen. better personalisation and precisely targeted digital marketing, to improving Restaurants, if they didn’t realise it customer service in the restaurant. The already, have seen first-hand the need challenge is to implement the right to invest in technology or be left behind. systems for your restaurant and get them Tech is going to play a huge part in talking to each other. Deliverect has put in the restaurant industry recovery. It’s the hard work setting up key integrations important to implement tech to optimise with EPOS providers, delivery partners, restaurant operations, both in the front ordering platforms, and payment and back of house, and to have sales systems. This, combined with tailored data. Implementing inventory or staff features and a dashboard designed for management software is a good start, the modern omnichannel restaurant, but finally what’s key is having all your means it’s uniquely positioned to help delivery and online ordering channels you take advantage of the benefits of the integrated in your ePOS, so you can approach.” manage all aspects of online ordering, including menus, from one interface. The pandemic also showed operators the importance of an omnichannel strategy as Jerome Laredo Chief Revenue Officer Deliverect 28 ORDER & PAY Why take online ordering in-store? Below, we’ll spell out some of the ways that order & pay systems can benefit a restaurant, and go through some of the concerns that restaurants have before signing up to one. Also, you can see our guide to ordering kiosks – about another form of digital ordering, kiosks, at storekit.com/advice/ordering-kiosk/. 1. BOOST SALES BASKET UPSELLING PICTURES BUILDING “Get a larger glass of wine for In the West, pictures in paper Customer behaviour is £1.50?” “Add fries for £2.99?” A menus are often considered fundamentally different when waiter offering upsell options tacky. But they work in digital they’re building a basket over and over again can feel menus – in fact, in the age than asking a waiter. Basket stilted and awkward, but a of “Instagrammable” cheese building takes the pressure digital menu achieves this pulls and rainbow bagels, off, puts the customer in very naturally. you could even argue that control, and generally leads they require images. Grubhub to bigger orders. An Order & Pay can increase claims pictures in menus basket size by 30%. boost sales by up to 30%. 2. HAPPY CUSTOMERS NO PRESSURE DO APPS RUIN THE EXPERIENCE? Ordering on a personal device With customers ordering and paying on their own devices, staff removes pressure from the are no longer required to perform these more administrative process. It gives customers tasks. They can be freed up to focus on being hospitable, and time to peruse side dishes making sure customers are ok, which many restaurants prefer.