By nusra, Editor
Nov 11, 2022 / 12 MIN READ
It’s easy to assume that everyone buys everything online these days. But that’s not true: 80 percent of all retail sales still happen at brick-and-mortar stores. And in quick service, where digital channels are strong and expected to be over half of the sales by 2025, much of that is due to third-party delivery services.
Most consumers are still not aware of or using branded apps in quick service and retail. Only about a third of polled consumers knew that brands like Domino’s, Mcdonald's, and Taco Bell had apps, let alone ordered from them.
Yes, food delivery apps have allowed almost every quick-serve to penetrate the delivery channel, but these come with fees that eat into margins and loss of ownership of customers themselves. All brands are facing a loyalty problem. Without pricing power and opted-in customer data, brands cannot build a direct relationship with customers, understand what they want and deliver it (pun intended).
In today’s digital-first environment, where over a third of consumers’ media time takes place on mobile, and 80 percent of mobile time is spent in apps, the best way to take back ownership of that relationship is through your own app.
"Many restaurant owners might ask themselves why they should be thinking about creating an app (or if they’re even qualified to do so), but the answer is simple: it works and there’s room for more. Apps like Swiggy and Zomato dominate the online food industry, making them the ideal blueprint to follow on an individualized basis. And it is always better to create a market of your own," the Manager of a quick service chain from Mumbai commented who is soon to announce their own app.
Easier said than done. The app marketplace is extremely crowded and building awareness and getting users to download your app is hard. At peak Covid, consumers downloaded apps without hesitation. Now, the growth rate has slowed, and having an app on your phone has become more of a personal identifier.
So how do you earn that spot on the consumer’s phone? There are a few things you need to increase your chances of getting a free placement or boost your UA to sustainable levels.
Loyalty Wins the Day
First, find the consumers who are already loyal to your brand. Who are the ones that already had your rewards card in the offline world? Back in the day, Starbucks Gold Card used to fit in criteria for a valuable product and service. So when the app came along, people downloaded, registered, and opted-in to share private information and use it regularly. Customers trusted the brand, so trusted its app. And for those who might be on the fence? Focus on two things: Value and Convenience.
"At McDonald’s India - North & East, we are deeply committed to strengthening the value that we provide to our customers. Our mobile app rests at the forefront of our everyday value proposition and continues to be a treat for our loyal customers with access to exclusive deals and offers," Rajeev Ranjan, Managing Director, McDonald’s India – North and East said while commenting about the festive campaigns that the brand runs on their app.
Ease of Use and Utility
Value boils down to free stuff. Customers are giving you their data, attention, and frequent business. Even if they only purchase once, they are worth a free coffee or two. Granting rewards works in the offline world to drive foot traffic and upsells, and mobile gives you that gateway.
When it comes to convenience, a better word is 'utility' how useful can this app be for the end-user? You create utility by making the app experience seamless. When you design (or redesign) your app and work with an agency, you should aim to consolidate the consumer’s path to purchase. What are the fewest actions they must take? How can you reduce those steps further once you have their information or integrate key partnerships with third parties (e.g., login options, payments) integrated into the app?
This might seem obvious, but sometimes critical details can go unnoticed. For example, imagine a big brand that adds Apple Single Sign-On (SSO) to its app but forgets to add it to its website. Suddenly, an experience that should have been seamless across the app and website was not. A user who had payment information saved in their app profile must now enter it manually when ordering through the website. Chaayos had made its safe space in the app world where they don't shy away from giving free ‘chai’ after every five orders and if someone has registered to their app, freebies are always pouring in.
Creating a Better Experience
With an app, you control the experience of what the user sees, like store hours and the nearest location. And you can let them find what they ordered! Dominos, for instance, makes it so easy to see your order; you can track it from the oven to your door. These types of utility (e.g., payment, location) were previously only associated with Apple and Google, but now you can build those features into the basic capability of your app.
“The main factors driving patrons' love of restaurant apps are simple access to the menu, deals, and discounts applied to the final bill, and the convenience of eating at their homes. While launching my restaurant app, I'd like to focus on the following specialties: exclusive menu, combos, special deals, safety, loyalty program, ease of use,” Shashank Kumar Misra, Managing Director at Barbeque Company said.
Looking at apps in other verticals, like Banking and Travel, there is much value created and delivered to the user. Even after paying for your flight, the airline lets you access related information quickly, like rental car prices or the weather at your destination. The Hilton app allows for contactless check-in and digital key entry.
Some brands in quick service are putting consumers first and thinking about how they can serve them before, during, and after purchase. This is why their brand loyalty is off the charts.
Easier Internal Order Fulfillment
Beyond making more money, mobile apps (especially the ordering options for pickup or delivery) make it easier to fulfill your orders. Instead of having someone constantly man the phones and try to understand what the person on the other end is saying and relying on their handwriting to accurately convey what needs to be done to the cooks, the people responsible for filling orders can see plain and clear exactly what needs to be made, along with any special requirements given by the customer.
And with in-app payment, there’s one less thing your front desk staff or delivery guys have to worry about. For example, if someone has to call in to place a delivery order, there’s a constant back and forth between them and your receptionist to write down the order, double-check it, write down and double-check the address, and if they pay by credit card, the communication to make sure every single digit is correct.
Better ROI on Specials You Offer
Push notifications can easily solve eating-out decisions. If it’s Friday or Saturday, you can plant the idea of eating in your restaurant that night as early as lunchtime. For example, if you’re running a special on some popular dinner plates, you can send a push notification to your app users to let them know. When the time for choosing a restaurant comes, they’ll already be thinking about eating your food and validating it with the fact that they can save money on it. For example, a restaurant called Tanco Bar in Mumbai started sending out push notifications about their Margarita Monday happy hour. And according to their owner, that was all they needed to fill the house on a Monday night… a night when most people don’t usually go out for a drink. Their investment in the app gave better ROI.
Customers may prefer restaurant apps for a variety of reasons, including uniqueness, comfort, ease, and effortlessness. “If I had to launch my restaurant app, I would like to honor and carry on our Chef Harpal Singh Sokhi's legacy in the design of the app, just as we do in the restaurant's ambiance. Unique menus, safety, flavor, and packaging are important factors to take into account for the same,” Manish Sharma, Director - Operations at Karigari commented.
Overall, a custom mobile app not only provides a platform to order conveniently but also works as your one-stop solution for increasing customer engagement. Mobile ordering is a complete package, not only it helps in bringing more orders but it also takes care of other things like scheduling events, and reducing errors, and food wastage.
It’s easy to assume that everyone buys everything online these days. But that’s not true: 80 percent of all retail sales still happen at brick-and-mortar stores. And in quick service, where digital channels are strong and expected to be over half of the sales by 2025, much of that is due to third-party delivery services.
Most consumers are still not aware of or using branded apps in quick service and retail. Only about a third of polled consumers knew that brands like Domino’s, Mcdonald's, and Taco Bell had apps, let alone ordered from them.
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