Like every other industry in the world, the food industry has also changed tremendously with the rise of digitization. Customers can now order and get their favorite food at their doorstep with just a click. As per a survey, the online food industry has grown more than 20% over the last five years. Though the exact statistics may differ across locations, the growth is undeniable. The food delivery business is expected to flourish by over $220 billion by 2025. It may even suppress the restaurant sales very soon.
As the online food ordering business experience revolutionary changes, the restaurants need to stay updated about what is happening in the market. They can use the data to identify new opportunities and invest correctly. Currently, the annual growth of the global food industry is 3.7% and the online food ordering sector is growing by 15-20% every year.
The rise of the online food ordering sector
The practice of going to restaurants has slowed down immensely with the rise of online food ordering and delivering services. Now, people can easily order their favorite food from the restaurants of their choice and get it delivered directly to their homes. The restaurants are actually profiting a lot more than before with their online delivery services. Suppose you are feeling like eating something that you cannot or don’t want to cook at home. But you don’t want to dress up, drive to your favorite restaurant, and wait in line to eat it. Of course, you will switch to the easier way that brings you your desired food at your door.
With food ordering apps like Uber Eats, Grubhub, Doordash, and more you can order food, make payment safely, and receive the orders in just a matter of time. It is beneficial for both the consumers, restaurants and on a greater scale for the economy of the world.
Change in the business models
One of the main reasons behind the rapid change and growth in the food delivery business is the willingness of restaurants to adopt new and improved business models. They also keep bringing changes frequently to their business methods and approaches to keep up with the changing needs and requirements of the market.
The new updates include same-day delivery, same-hour, next-day delivery, party delivery, and more. Some even started delivery from the nearest stores, curbside pickup, delivery from robotic warehouses, and more. Now that the customers have a wide range of choices, the restaurants are able to define the different types of demands and cater to them more easily.
Change in consumer choice
The preference of the customers has changed tremendously, impacting the growth of the online food delivery business. The use of mobile apps to find solutions for every aspect of their life has encouraged the growth of the industry. The preference of the customers is most important in the food business. Most of them now prefer to order their foods online and the number of these customers is only rising and shows no sign of slowing down. When ordering food the consumers are more specific and at what they want. Online food ordering and delivery services are most popular among people between the ages of 21 and 36 years.
The impact of digitization
The main reason why online food delivery service is so popular is the rise of digitization. Most of the world’s population has access to some kind of mobile device. People have grown accustomed to ordering food and other products from their phones. Even the older generations are now opting for ordering food online due to its convenience.
The future of the online food ordering and delivering industry is bright with the invention of newer technologies coming in every day.
What the growth indicates
The continuous growth indicates that both the consumers are bound to see more improvements in their user experience and the restaurants are going to see massive profit in their business. Customers have so many options when they are ordering. Irresistible photos of foods are also added to attract consumers even more. It has led to increased competition for restaurants worldwide. They need to be more creative with their marketing techniques to create a separate identity in the crowd.
