Being a foodie, I have been hitting the floors of the restaurants wherever I go. The time has changed and I see a vast difference now a days.
Three years ago, when I went to a restaurant I always used to see on an average restaurants were 50-60% covered. Obviously, I can feel the difference today. That scares me if we are going towards the end of Traditional Stand Alone restaurants
Most of the traditional restaurants target the community customers instead of diversified foodies. May be that is the reason we see only seasonal customers to these restaurants!
I may be wrong however, the way people go for Meal ordering has been changed dramatically.
There are meal ordering companies which are changing the way people eat now. People now order online and get the meal delivered. The meal ordering companies play the role of a mediator between the restaurants and the foodies. This is a win win approach for all.
There are too many Single Owner Single Location restaurants all over the country. The Meal ordering companies help these restaurants by increasing the revenue on an average of 10-15% sales. I feel the restaurant owners are also gaining benefits by associating with those companies. In fact, these companies do not charge anything upfront from the restaurants. So, no sale no cost to the restaurants. The restaurants get benefits from the large scale marketing as well as being available on the searchable portal of these companies.
We can easily find out why the meal ordering companies are becoming successful as well as able to help the restaurant owners. The below are the top meal ordering providers based on 2015 revenue
GrubHub 2015 Revenues : $551 Million
Eat24 2015 Revenues : $331 Million
Caviar 2015 Revenues : $471 Million
According to Morgan Stanley, the market for restaurant ordering application technology is $14 Billion with the top 10 players accounting for only 8% of revenue in 2016.
This shows that the traditional restaurant owners have to change their mindset and look forward to going online with the help of a digital service provider. It’s always good to have an online presence. Ultimately, there is a need for Innovative Customer acquisition module and Online Meal Ordering Companies are a great help to be associated with. I still love to Hit the floors !!
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