Starting a restaurant business is neither easy nor cheap. Getting and hiring the right space, purchasing kitchen and dining essentials, staffing the establishment, and buying supplies – all these things cost money. As a restaurant owner, you expect that you will get the return on investment with regular and steady profits due to sales. But if you own a small restaurant in only one location, you can serve only walk-in customers in your locality, right? Not when you use a food delivery app. You can make money with food delivery apps.
Food delivery apps help to market and sell meals to customers within a large geographical area without the customer having to visit the restaurant. They help restaurant businesses to increase their orders and revenue by allowing customers to request and receive their preferred dishes at the comfort of their home or office. The food delivery industry has grown so popular that it’s estimated to reach an incredible $200 billion by 2025.
Monetization Techniques for Your Food Delivery Application
In the age of on-demand services, food delivery via apps has been exceptionally established and adopted. So how does this app work? By installing it on a smartphone, a customer can order food from a preferred restaurant. The restaurant is immediately notified of the order and prepares the food. The last step is that the food is delivered to the customer’s stated address. But if you are planning to venture into food delivery app development, you might be wondering how you can make money with Food Delivery Apps. Here are six ways to monetize your app:
The app can make revenue from delivering meals in case the restaurant doesn’t have a delivery team or means. Delivery charges account for a significant chunk of what a shipment application makes. Depending on what the app owner wants and the distance, this fee can be a percentage of the meal cost or a fixed rate for different locations.
Peak Hour Extra Charges
A delivery app can make extra cash hiking the delivery charges in peak times – lunch or dinner. Certain menu items or delivery to particular locations can be limited during these busy hours. And to request the foods or delivery to these places, customers are required to pay extra money. An app that utilizes this model well is UberEats.
Most delivery apps also earn an agreed-upon commission from the sale of food. For example, if the app owner and a restaurant agree on a commission of 10%, the app will get this percentage on every order to the restaurant facilitated through the app.
Advertising on the App
For an additional cost, restaurants can get advertising from the app. When a restaurant has paid for advertising, it is displayed at the top of the search results of the app users for a particular length of time. Therefore, you get to see these restaurants first. Popular food delivery apps like UberEats and Swiggy charge advertising fees. You can also earn from Google AdSense.
The food delivery company can print adverts on the food packaging for the customers to see. It can also send posters and pamphlets together with the meal. Consequently, the app makes money by charging restaurants for these placements.
Email Marketing Campaigns
Having an app where users log in to order food provides an opportunity to collect contacts. Further, you can send email campaigns about limited-time offers, promotions, new restaurant features, etc. These campaigns can yield more sales, and, as a result, higher commission margins and delivery fees via the app.
White labeling refers to a situation when the delivery app sources foods from a restaurant and brands them as their own before selling to the final buyer. The end-user will not know that the food came from a particular restaurant. The app pays the restaurant its dues and still earns a decent amount from the sales. This arrangement is especially ideal if a restaurant is not well-known or is home-run.
People love the idea of ordering food online as they don’t need to drive up to the restaurant to eat or stop whatever they are doing to go pick up their meal. For this reason, online food delivery has become a booming business that can be very successful. As long as you have an app which collaborates with a variety of restaurants and is popular among the users – you will start making money from commissions, delivery costs, ads, and other revenue streams.