Is food delivery good for your business?

Some restaurants have a menu for instore diners and another one for home delivery. It often costs less to eat at a restaurant than to have the food delivered to a home because food delivery services such as Uber Eats takes around one third of the order value for the meals they deliver.


Uber Eats and other food-delivery platforms can expose a business to a larger market, however they will ask for more than 40% of each sale and customers will be asked to pay even higher fees in the future.

The economy of Australia is rife with industry giants and none more so than in the food delivery industry but thankfully, duopolies are starting to break down as other entrants boost competition. Many small restaurants will become beholden to the bigger food ordering platforms, survival only based on their access to these distribution channels. If they don’t move with the times they could lose valuable market share.

These food delivery giants have market power and have undeniably disrupted the market through technology and a good business model. They have targeted consumers who are pressed for time and willing to pay more to have food delivered to their homes. They assist restaurants that can’t afford in-house riders. Regulators are going to have to consider the economic, societal and environmental impact of the food-ordering boom.

The global food-delivery sales market is estimated to increase from $US35 billion to $US365 billion by 2030. It is hypothesised that most home-cooked meals will be ordered online from restaurants or industrial kitchens by 2030. It may be hard to believe for those of us who were used to cooking their meals at home, who enjoy cooking or who can’t afford to eat out all the time, but the younger generations will grow up with technology and might look at cooking differently.

Apartments are expected to become smaller as the populations grows and homes are expected to have a shared or tiny kitchen. Will cooking become a forgotten skill just like sewing has? Will families miss out on precious bonding time while cooking and eating together around a table? If millions of people eat each meal from a single-use container, how badly will this ultimately affect the carbon footprint? These are the things that Government and private sector need to consider sooner rather than later.

As you look for different ways to grow and improve your business, seeking professional advice from a business consultant could prove to be an important and helpful decision.

You can click here to speak to business experts. We would love to help you formulate investment strategies and streamline your processes to take your hospitality business to the next level.  Our goal is to help you grow your business, find ways to invest more and increase your productivity.

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