Food Delivery Business: From Pop-Up to Virtual Restaurants
Food delivery has been through a significant change in the past few years. In fact, it has become a new weapon in the food and beverage industry. You can see that food delivery business has shifted from the conventional means of transaction to virtual delivery system. The change is visible not only in fast food businesses, but also in healthy food industry. Now, ordering various kinds of food from home is just as simple as clicking few buttons on your phone, right?
Two Common Trends in Food Delivery Business
Actually, food delivery business is different from the food kitchen business (restaurant). Food delivery system works to deliver the foods to the customers. In other words, it serves to optimize the restaurant’s kitchen. Food delivery is mostly conducted by transportation business. Now, the most popular players include Uber Eats, DoorDash, or Postmates. These businesses are experimenting to find the most effective ways to meet the customers’ need while maximizing the partner restaurants. Actually, there are two common ways, in which the food delivery system works:
- First, the food delivery company works on behalf of a restaurant. In this case, the restaurant receives the order and has the orders delivered to the customers by the food drivers.
- Second, the food delivery company works for the customers. In this way, the drivers receive the orders by means of web-based app and deliver the orders to the customers.
The second system is increasingly popular now. In this system, the drivers get the commission from the online transportation company since the amount the customers pay is added with the transportation fees. More and more online transportation companies are involved in the food delivery business. As a result, competition becomes tighter.
Analysis of Top Food Delivery App Models
Mobile apps have become dependable partners for everything from paying bills to placing phone orders for groceries, making food delivery successful and accessible. Below is a comparison of major platforms:
| Service App | Business Model | Income Generation |
|---|---|---|
| UberEats | The order and delivery model is based on the marketplace (restaurant partners and driver providers). | Commission on orders, customer delivery fees, restaurant marketing, and customer surge charges. |
| GoPuff | Direct seller: GoPuff purchases the goods, store them, and then sells them to customers directly from their stock. | Profits from items sold, flat shipping fee, subscription service (GoPuff Fam), and advertising. |
| Instacart | Marketplace where shoppers shop for other people's groceries and deliver them to the customer's selected location. | Shipping costs, pickup fees, and service charges depending on the location and items. |
Effects of Tighter Competition and the Rise of Virtual Restaurants
Each company competes to provide the customers with faster and unique services. Actually, tighter competition in the food delivery system has resulted in some unexpected effects. They include the rise of delivery-only pop-up to virtual restaurants. For example, the food delivery company Caviar collaborated with Honey Butter Fried Chicken to set up delivery-only booth during the weekend. The booth cuts the time required to deliver the foods for the customers. In addition, Caviar offered exclusive menu on its delivery service.
Catering Safety and Professional Standards
In the age of COVID-19, businesses have had no choice but to adapt to our new reality. While working from home and virtual meetings can be quite successful, there are still occasions when a more personal touch is required. Let’s explore some ways to help promote health and safety during your next catered, in-person meeting:
- Enforce Infection Control: This includes infection control measures such as proper cleaning and disinfection of high-touch surfaces using EPA-approved products.
- Practice Social Distancing: Be strategic about how you arrange your event furniture — maintaining at least six feet of space between tables and chairs.
- Choose Food Options Carefully: While a buffet may be the easier, cheaper option, it’s no longer a safe choice. Instead, opt for pre-packaged food that can be distributed individually.
Make sure those handing out the meals are wearing proper personal protective equipment such as masks and gloves. It is also critical to foster proper hand hygiene as much as possible, so consider placing hand sanitizer stations throughout your meeting space. You’ll want to vet your caterer properly to help make your meeting as safe as possible.
