Deliverect CEO Zhong Xu's take on the evolution of online restaurant operations

As the global food and restaurant industry struggles to generate revenue and serve customers in the face of the coronavirus outbreak, many restaurant businesses have been pivoting to delivery and/or takeaway and transforming into an online ordering business overnight.

Off-premises dining, which had already been increasingly popular, has now quickly become a critical model and with that come key considerations for how to effectively scale.

Increasing consumer demands

Zhong Xu, co-founder and CEO of Deliverect, has seen some big changes in the past few years. “The online world started to strongly evolve around 4 to 5 years ago,” he says. “The retail sector started building up investments in everything digital, making it increasingly easier for consumers to order products online. Delivery set a new standard, one which was quickly picked up by other industries, like hospitality.”

"Back in those days, takeout was especially popular. Lunchtime at the office was basically about which sandwich (filling) you were going to choose, today you can pick from poké bowls and sushi, spaghetti, burgers... pretty much anything you desire. Because of that growth, a diversified offer has become possible, so all kinds of restaurants can get a piece of the action."

Prior to COVID-19, in Europe alone, online food delivery revenues were estimated at 24.5 billion dollars by 2023. The boom was to be expected, but now we are seeing that prediction materialize rapidly. Once people get used to an increased level of comfort, and their options expand to include hyper-local haunts to global chains, they won’t want to go back. 

Consumers expect and demand a wide variety of options, available instantaneously, and are willing to pay for convenience. Delivery menus have to comply; it’s important for restaurants to segment their offerings, as people are very specific when they are searching for food online. 

Automation: getting your menu out to every channel at scale

Restaurants must consider their brand at an omni-channel level in order to expand their sales. Online sales channels have no limit to capacity and they make it easier to scale a business.

Think about the rise of cloud kitchens or virtual restaurants where food is prepared exclusively for delivery - and sometimes, takeaway. The dark kitchen model allows you to build a brand, but without the physical address.

In order to grow along with the industry, restaurants need to adopt numerous tools to automate their online sales. Nowadays there are so many different ordering options, you really have no choice but to automate. Consumers can order from third-party delivery platforms, such as Uber Eats, Deliveroo or DoorDash, among others, via Google, on the restaurant’s website, via Facebook or Twitter or sometimes even through a virtual assistant like Alexa from Amazon.

Selling your brand through multiple platforms leads to increased revenues, but only if you invest in a decent tool that can help you optimize your food delivery operation.