Last year hundreds of restaurants turned to online ordering to work around lockdowns and dining restrictions. For many eating and drinking establishments, digital ordering was their lifeline. A year-and-a-half on from when the pandemic was first declared, online ordering is still a primary source of income for food and beverage outlets. Customers are now well versed in the technology and continue to use it even as more and more dining rooms open their doors.
Online ordering has become so widespread that a September survey revealed that over 70% of consumers would rather use this mode than speak to someone in person. Just over two-thirds of this group prefer to use their mobile phones when ordering. Furthermore, over half of US consumers steer away from third-party delivery apps, choosing a restaurant’s own food ordering app instead. The numbers speak for themselves – when it comes to ordering food, the mobile app is the channel of choice among customers.
So what accounts for the popularity of the food ordering app? And why do customers favor a restaurant’s own app to third-party delivery apps? There are four main reasons:
- Apps are a lifestyle
Using an app is now an intrinsic part of a modern consumer’s life. No matter what a person may be ordering – groceries, clothes, yoga mats or an external hard drive – there is an app for it. And people are used to whipping out their phone and placing their order in just a few clicks. Therefore, it comes as no surprise that diners turn to food ordering apps when they are hungry. Reaching for their phones to purchase their meals is habitual and a feature of their daily routine.
- Apps provide emotional returns
Customers are also drawn to food ordering apps because of the emotional benefits. They have the freedom to choose when they want to place their order and can take their time when making their selections. They have the flexibility to go for whichever payment method works best for them. They have the convenience of being able to carry on with their stuff once the order has been placed, confident that they will be notified appropriately.
- Apps offer tangible and intangible rewards
Consumers tend to prefer food ordering apps with loyalty programs and buy food from those particular restaurants more frequently. While rewards points and discounts are the biggest attractions, customers also believe that they get better service when they are loyalty members. They enjoy the personalized offers and feel that, in general, they get a better deal. The recognition and appreciation they get as loyalty members also go a long way in prompting more purchases.
- Custom-branded apps have the best prices
It is now a well-established fact that third-party aggregators are expensive, but what may still shock is just how much pricier they can be. A New York Times study into the cost of ordering two turkey sandwiches via various aggregators made some startling revelations. In all cases, the cost of ordering via a third-party app was more than in-store purchases, the markup average ranging between 30 and 40%. The highest markup as found by the study was a jaw-dropping 91%. The cost was a combination of delivery fees, service fees, small order fees and sales tax. Now customers may not see all these hidden charges, but they have noticed the difference in prices. This is why most of them order through a restaurant’s own app rather than through an aggregator. Very few customers will voluntarily pay more when they know the same item is available at a much lower price on the restaurant’s custom-branded app.
In this kind of context where a food ordering app is a customer’s top pick, having one is vital for restaurants. Applova’s custom branded app is easy to set-up, taking just a few minutes. By linking directly to a restaurant’s POS, Applova’s food ordering app streamlines the order and payment process. With zero commissions and no hidden fees, it is cost-effective too. Check out the Applova website and request a demo.