5:15 am
January 19, 2022
cogent inCIghts
Industry Analysis
Dallas, TX
Cogent inCights


The Coronavirus outbreak forced everybody to stay at home, and it was challenging for foodies who used to go to restaurants to try new cuisines on weekends, as they no longer could do so. It was challenging for restaurant owners to survive in the market when governments across the globe announced an indefinite lockdown. 

However, they got a ray of hope when government authorities offered some relaxation. As a result, restaurant business owners started offering door-to-door food deliveries. Although the situation of the Covid-19 is under control now, online food delivery is still thriving. Reports indicate that food delivery sales will reach $220 billion by 2023.

Let's learn about some trends to understand the rapid evolution of food delivery:

Delivery platforms

Restaurant business owners partner with online food delivery providers to increase their brand reach and ensure a mesmerizing customer experience. This has played a pivotal role in the rapid evolution of food delivery. Customers love good discounts, transparency related to their order's whereabouts, instant support, door-to-door experience, etc.

Some online food delivery providers make sure new orders keep coming in every country, as they run creative marketing campaigns and offer heavy discounts during festive seasons. Swiggy and Zomato are popular in India, while Uber Eats, DoorDash, Postmates, etc., are on the favorites list of US customers

Restaurants have to give a slice of the profit to the food delivery provider. Here's the graph for complete clarity:

Delivery data analysis for high-profit margins 

Another reason we are witnessing a rapid revolution in food delivery is because data-driven actions are being taken for high-profit margins. Online food delivery providers partner with third-party companies to increase their delivery staff for a better customer experience. However, this could be risky, and that's why collecting data and analyzing it is essential to keep delivery operations flawless.

You would be surprised to know that McDonald's spent 300 million dollars in April 2019 to take over a big data startup to improve its operations. This move has paid dividends to this multi-billion-dollar conglomerate. It helped them rectify hidden loopholes in their system and accomplish optimal performance, resulting in faster customer acquisition.

Restaurants should be sure that they maintain a balance between in-store dining and delivering food because both contribute significantly to business growth. Check out this graph:

New opportunities and revenue pools

New revenue-generating opportunities can be unlocked with persistent innovation. It is vitally essential because customers always seek something new from the brands they love. If this doesn't happen, it's a matter of time before they start exploring other options.

Therefore, keep bringing out-of-the-box ideas is crucial. For example, you can go for menu engineering because online food delivery providers collect data and can easily share comprehensive reports with you to pave the way for custom menus. 

With end-to-end customization, customers' food ordering experience will reach the next level because they can easily discuss their food allergies in advance to enjoy their meal later  without any worries.

Similarly, you can invest in drone technology to make the customer experience delightful. It can do wonders for both (customers and restaurant brands) because drones reduce the delivery time and improve service quality. 

Summing up:

The global Covid-19 pandemic has played a significant role in the rapid evolution of food delivery operations. 

This article has explained how online food delivery providers try to keep customers engaged in the long run. Right from doing data analysis to investing in cutting-edge technology, they are doing everything in their power to set new benchmarks in terms of customer experience.

Considering the popularity of online food delivery, it is anticipated that many revenue-generating opportunities will be unlocked shortly. We hope that this article has offered you crucial insights into the changing dynamics of the food delivery system.

In case you want to read more such articles, visit the Cogent Infotech website.


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