The Impact of Food Delivery Apps on the Restaurant Industry - An Added Revenue Model For Casual Dining

"Delivering Exceptional Culinary Experiences: Signum Hotels & Resorts' Approach to Food Delivery"

Mehul Sharma,

Founder & CEO

Signum Hotels & Resorts

For Signum Hotels & Resorts, these platforms align seamlessly with our mission to deliver exceptional culinary experiences. Food delivery apps allow us to bring the flavours of Signum’s kitchens directly to our customers’ homes, extending the reach of our hospitality beyond traditional dining spaces. Through curated menus, premium packaging, and consistent quality control, we replicate the excellence of a Signum dining experience in every order. This approach ensures we remain a part of our customers' everyday moments, from celebrations to quiet meals at home. By integrating delivery innovations, we not only enhance guest satisfaction but also solidify our presence in the evolving global foodservice landscape.

"The Double-Edged Sword of Food Delivery Apps: Balancing Opportunity and Challenge for Restaurants"

Subin Venugopal, 

Food & Beverage Manager,  

Sheraton Grand Bengaluru Whitefield Hotel & Convention Center

One of the most significant and contentious aspects of food delivery apps has put an economic impact on restaurants. While these platforms offer restaurants the opportunity to reach new customers and increase sales volume, they have also presented substantial challenges to profitability and operations. It has been observed that the 30-50 cents has been spent on online food delivery services represents new sales, while the rest is shifted from traditional in-restaurant dining. Thus experts in hospitality suggests that while delivery apps expand the market for restaurants, they also utilize the existing sales to some extent. The commission fees charged by delivery apps are somewhat a significant point of contention. These fees typically range from 15% to 30% per order. An analysis by Revenue Management Labs demonstrates that the adoption of food delivery apps among consumers, particularly young adults, has been rapid and significant. This high usage rate is driven by convenience, variety of food options, and the ability to avoid physical interaction, especially during events like the COVID-19 pandemic suggesting a significant increase in usage and spending even as the pandemic has eased. This trend implies that the shift towards food delivery apps may be a lasting change in consumer behavior rather than a temporary response to add an extra revenue model for casual dining’s.

"Seizing the Opportunity: How Food Delivery Apps Can Boost Casual Dining Revenue"

Akash Bansal

Director of Operations

Novotel Kolkata Hotel & Residences

Food delivery apps have transformed the restaurant industry landscape, especially for casual dining establishments. These platforms provide an excellent opportunity to expand revenue streams by catering to a broader audience beyond those who can physically visit the restaurant. They allow casual dining restaurants to reach busy professionals, families, and individuals seeking convenience, effectively tapping into a market segment that values the dining experience but prefers it at home.

Moreover, these apps enable casual dining establishments to promote signature dishes and curated meal options, creating an additional brand touchpoint. With the right strategy—such as ensuring consistent food quality, optimizing delivery-friendly packaging, and maintaining a strong presence on these platforms—restaurants can leverage food delivery as a powerful tool to grow their business without compromising the dine-in experience.

While food delivery apps can introduce challenges, such as commission costs and increased competition, their potential as an added revenue model is undeniable. Casual dining restaurants that embrace this change and adapt creatively can thrive in this evolving industry landscape.

"Revolutionizing Casual Dining: How Food Delivery Apps Create New Revenue Streams"

Syamjith Venugopal,

Assistant Director of Food & Beverage.

Kochi Marriott Hotel

For many casual dining businesses, food delivery applications have created a new and rewarding business model. From these apps, it is possible to obtain more income than just from the customers who dine inside the walls of the restaurant, without incurring significant costs. Many restaurants now focus on delivery and delivery menus, preparing food and dishes that are quick to prepare and have a good shelf life. By making use of food deliveries, casual dining businesses are also able promote their sales during the non-peak hours and customers who are busy and looking for convenient ways to dine. Similarly, delivery applications allow restaurants to conduct low-risk roll-outs of new products, obtain market intelligence, and be able to study the ordering preferences of patrons thereby assisting in better marketing strategies.

"Food Delivery Apps: A Game-Changer for Casual Dining Restaurants"

Reggie Fernandes

Head Revenue Management

Niraamaya Wellness Retreats

"Elevating Casual Dining: Bira 91 Taproom's Innovative Approach"