Advantages and Disadvantages of the Online Food Ordering System
The rapid evolution of online food delivery was noticed during the time of lockdown. The good online food ordering system turned out to be the best option for the people who can’t go outside of their homes. Moreover, several people started to invest in this business. It led to the boom in the online food ordering market and opened opportunities for many startups in this sector.
Likewise, the need for a top mobile app development company occurred for a customized solution. There are several apps through which people order and get food where they want. But not all the apps are as famous and receive traffic as others. Although there is a boom and profit in this type of business, some limitations of online food ordering systems lead to the failure of the business.
So, when you are planning to make an online food ordering system, consider the disadvantages of online restaurant management systems as well. The restaurants have their ordering systems via apps and websites. If you also want one for your business, you must read the below write-up.
Why Should You Be Interested in the Online Food Ordering System Business?
This is an important question to know how an app can help your business. Before you think of taking online on-demand development services from a firm, you must be aware of some facts. These facts will help you know why you should be interested in an online food ordering system. Subsequently, you can also have an app like GrubHub or any other of your choice.
- The revenue through the online food delivery system going to reach US$339257 in 2022.
- The ARPU (Average Revenue Per User) is projected to amount to $175.81 in the online food delivery system.
- The number of users of online food delivery systems can reach 2655.9 million in 2026.
- Also, the user penetration in the online food delivery system can be around 25.3% in 2022.
- 8% of food sales made in the USA is via online delivery systems.
- The market value of the food delivery system in the USA is 25.7 Billion USD.
By reading the above facts by the Statista worldwide food delivery system, you may have got answers to your many questions. But online food ordering system is not of a single type. Then, the next question that will come to your mind is, then ‘Which type of app would be the best for my business?’. Have a glance at the image below.
As you can see in the image, there are majorly three types of food delivery systems. Also, you can notice the market share of order focussed food delivery system is more than the others. But your business idea can be different and you can have different plans so, have an app accordingly. There are many app ideas for startups, so you choose the right one as per your need.
Also Read: App-based On-Demand Food Truck Business
Advantages of the Online Food Ordering System
The global food delivery industry statistics revealed that sales of total food delivery increased thrice between 2015-2020. So, there must be some advantages of an online food ordering system.
- Variety of Food
- Less Cost of Ad
- Low Maintenance
- Increase Loyalty
- More Customers
- Increase Visibility
- Wider Market
- Revamp Revenue
Let’s read about each advantage in detail in the space below.
- Variety of Food: Often, you get bored of eating the same food over time and want to eat something delicious and different. Online food delivery apps offer a variety of foods at your doorstep. From local to international, you can enjoy having the taste of any country or locality whenever you want.
- Convenience: When you are at home, you may feel reluctant to make food after the office or household work. And in this situation, neither you want to go to Kitchen to make food nor a restaurant to eat. So, an online food ordering system allows you to have food at your comfort.
- Less Cost of Ad: When you open a new restaurant, you have to spend a lot to advertise your business. But if you go for on-demand app development or for a website to digitize your business, you have to spend less on ads because they run on online platforms. Moreover, easy to reach potential customers.
- Low Maintenance: Off-line food business requires many resources and effort. While you can run the business flawlessly if you run it online because the maintenance cost will get reduced. You can collaborate with the restaurant owners and run an online food ordering system.
- Time-Savvy: The most important advantage of an online food delivery app is, it saves time. You will not have to go to the restaurant and wait for the food to get ready. You can plan the food as per your time and order 30 minutes before your eating time. Meanwhile, you can do your work while waiting for the food. Many want to know how to hire mobile app developers, because of the advantages of online food ordering system offers.
- Increase Loyalty: Customers will know your business and like to order using your app if you offer variety and quality. So, the online food business will help you increase the loyalty of your customers and ultimately the revenue.
- More Customers: 83.72% of people in the world own smartphones. It shows what they see online use and believe most. Consequently, if you have an app or website, your business can have more exposure and reach countless people. So, it will bring you more customers.
- Increase Visibility: How many food delivery apps do you know? You can name many. Likewise, the online food ordering system increases the visibility of your business. The more people will know about your business the more people will take service.
- Wider Market: You noticed the rapid evolution of the food delivery market. It is because the businesses can reach the targeted audience easily. The online presence of the food business gives exposure to a wider market and gets in touch with all types of customers.
- Revamp Revenue: Management of transactions is an important matter in the food ordering business. You can have a restaurant management system for point of sale. POS apps help to keep the records of transactions properly and easily. So, it can revamp the revenue for the success of the business. These were the advantages of an online food ordering system. But if you are planning to have an app or website, know about the food software cons.
Also Read: Grocery delivery apps like Shipt
Disadvantages of the Online Food Ordering System
In all the processes, you must not forget that knowing only the benefits can’t get you the best solution for a food ordering system. The developers also consider this fact and work accordingly. Knowing about the disadvantages of an online food ordering system helps you remove mistakes and flaws.
- Food Quality Compromised
- Effects on Health
- High Competition
- High Delivery Charges
- Limited & Irregular Menu
- Food Can Get Cold
- Excessive Production & Waste
- Late & Incorrect Orders
Read all the disadvantages in detail below.
- Food Quality Compromised: Due to high orders, some restaurants boil or heat the food on high flame to prepare it fast. It results, in destroying all the nutrients of the food and when customers eat it, they don’t get any benefits. It is one of the important cons of website ordering systems.
- Effects on Health: Food in plastic boxes affects health adversely. People like fast and junk food, they order them online without worrying about bad effects on health. Often, over cheesy and artificial ingredients included in the food cause food poison.
- High Competition: Today, almost all people like to order food online, and due to the high demand, there are many apps and websites to fill various demands of people related to food. It increases competition between different food ordering systems. So, high competition is a limitation in the online food ordering system.
- High Delivery Charges: You must have noticed, when you order food online, you have to pay some delivery charges. But heavy offers have psychological impacts on your mind and you ignore the heavy delivery or shipping charges.
- Limited & Irregular Menu: Often, you don’t get the food types you last time ordered. It is due to irregularities in the menu. The customers can move to another app or restaurant due to it. In addition, the limited items to order become a hurdle to order food because people can’t find their favorite ones.
- Food Can Get Cold: Everyone wants a fresh and hot meal. In this case, if cold food is ordered anyone can get irritated. If the distance from the restaurant to the destination is too far, the food can get cold because the delivery boy will take time to deliver it. Apart from it, food can get cold due to irresponsible delivery boys also.
- Excessive Production & Waste: Due to high demand, restaurants cook food in excess to meet the demand. Consequently, they end up producing food in much amount and have to through it. Food wastage is one of the important disadvantages of online food ordering systems.
- Late & Incorrect Orders: An order can get late due to traffic, longer cooking time, long root, and any other reason. In this case, the customers can complain about the same. Moreover, incorrect order delivery is also seen sometimes. You don’t get what you paid for, which is one of the evident cons of online food ordering systems.
These are some of the limitations of online food ordering systems. You can know many more by looking at the image below.
The advantages and disadvantages of an online food ordering system are very important for you because then you can build a flawless app or website.
How Much Does On-Demand Food Development Cost?
Several factors made up the cost of an online food delivery system. The developers use emerging technologies like AR in the food delivery apps. This technology gives the best user experience. It is because you can track the order effectively. So, the choice of technology affects the cost. You can know how to create an Augmented Reality application because it is widely used in food apps these days.
Moreover, customized features and functions also play a crucial role to determine the app development cost. So, the cost of app development is around $20,000-$60,000. If you hire freelancers or want developers on an hourly basis the cost is around $40-$100.
Likewise, website building costs can be somewhere between $12,000-$150,000. It is also dependent on some factors, so you must keep that in mind because variation in the price can exist.
Key Players of Online Food Delivery System in the USA
There are many websites and apps in the USA people use to order food. You can know about the popular ones below. Moreover, some interesting facts about the online food ordering software in the image below.
- GrubHub: The market share of GrubHub is 29%. It is the most popular food delivery app in the USA according to Statista. You can find and order food from your favorite restaurant.
- Uber Eats: Uber Eats has a 27% market share in the USA. According to Statista, it had the highest share in Miami. From online food to Takeout and Groceries, people choose Uber Eats.
- Postmates: The customer can order anything they want from Postmates, as it delivers food, products, and groceries. The market share of Postmates is 9%
- DoorDash: DoorDash has a 15% market share and more than 25 million users. The motive of the app is to order food from anywhere you want.
- Caviar: The market share of Caviar is 2%. It is also an on-demand food delivery system. You can order food at your comfort from anywhere using this app and get delicious food.
People also like to read: GrubHub’s food delivery business
Online food ordering system has many advantages, but you should not ignore the disadvantages if you want a scalable and user-friendly app or web. Technource is a leading on-demand app development company in the USA. You can get customized solutions within your budget.
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