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food delivery business

5 Mistakes That Can Hurt Your Food Delivery Business

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With almost everything embracing digital technology, food delivery businesses haven’t stayed behind. Restaurants and food delivery businesses are shifting online to cater to the changing needs of customers and staying abreast with the new trend in the industry. In fact, the online food delivery industry may generate a revenue of $156,819 million by 2023.

The fierce competition in the industry with big brands such as UberEats, GrubHub, DoorDash, etc poses a challenge for new entrants or small businesses to sustain and thrive in the industry. With such a stiff competition, even small regular mistakes can break your business and get you out of the race.

What are the mistakes that a food delivery business makes?

The challenges in the food industry should be regularly analyzed and worked upon to stay ahead of your competition. So, let’s look at the 5 common mistakes that can hurt your food delivery business and cause temporary or permanent damage.

1. Delivery Speed

Every customer appreciates on-time delivery which is the most essential element of the online food delivery business. Especially during lunchtime, people don’t have enough time and are not willing to wait long for deliveries. Therefore, it is crucial for your food delivery business to provide speedy delivery to your customers. Moreover, this would maintain your brand image and receive positive reviews and ratings from customers. 

Online food deliveries do face issues such as wrong order delivery, heavy rush at the restaurant, traffic conditions, missing or spilled food items, etc. These depreciate the brand image of the food delivery business sometimes because of external factors. Therefore, consider these factors when displaying the delivery time to the customer on the mobile app. Do not over-commit a shorter delivery time just to overshine from the competitors. 

Hungry customers do not understand these issues as they expect their food delivery within the time committed by your business. Therefore, when the delivery is not made within the estimated time, they end up giving bad reviews and ratings and also pass on the word within their circle.

2. Hidden Charges

It gets frustrating when a customer selects the food items and reaches the checkout only to find out that they are being charged extra unexpectedly. For instance, some food delivery businesses charge a delivery fee, tax, or restaurant charges. So many charges do not make sense and the customers end up ordering from a different place. Seeing add on charges that make the meal cost a lot more than what it would have costed if dined at the restaurant itself makes the customers lose interest in the restaurant. 

Having transparent pricing that remains the same even at the time of checkout is essential for the customers to trust your business and make their future orders through you. Furthermore, providing exciting deals, discounts and offers can help boost your sales as well. 

3. Poor Quality Of Packaging 

You may be a restaurant owner that delivers food to its customers through an online food delivery app. The packaging material you use can also make or break your brand image. Customers often experience food spillage that happens during delivery because of low-quality packaging. This annoys the hungry customer. 

Therefore, you should use proper packaging to prevent spillage and keep the food temperature intact for a longer time.

Another important factor when it comes to packaging is the visual design of the packaging. Food delivery businesses use attractive designs, logos, meaningful quotes, intriguing taglines, etc to appeal to the customers. Many customers remember a restaurant only due to the captivating packaging they use in their deliveries. 

Many restaurants have even switched to eco-friendly packaging to make their contribution towards the betterment of the environment. Customers appreciate these eco-friendly and environmentally aware efforts of food businesses to avoid waste.

4. Inadequate Marketing Strategies

Strong marketing strategies is what gets your food delivery business rolling. Using the right channels such as social media, television, etc is crucial to create awareness about your brand. The tech-savvy generation of today is more inclined towards social media platforms such as Facebook, Instagram, Youtube, et al. Therefore, your food delivery business can leverage these platforms by placing relevant ads to entice customers into ordering their meals through you.

The other element that creates brand visibility and loyalty is a food delivery application like Doordash and GrubHub. A food delivery application is a must for every food delivery business to expand its customer base and provide convenience to customers while ordering food. The app or website should be responsive and user-friendly and provide users with advanced features, rewards, offers, and deals.

5. Online Reviews

Reviews and ratings by customers must be taken seriously especially when there is a negative review. Many businesses ignore the genuine reviews given by customers which may help the business in improving their services. Not listening to your customers can take a toll on your business in the long run.

Managing online reviews, replying to the positive reviews by customers and taking actions on the negative reviews and complaints left by disappointed customers can help your food delivery business in earning credibility amongst the customers. Moreover, positive and appreciative reviews can also be used as PR for your food delivery business. While a negative review can be leverage by taking appropriate actions and making the experience of the irate customer better.

Apart from the above five mistakes, there are many other factors that contribute to committing mistakes on a regular basis that almost become a habit for the business. These 5 mistakes can hurt your food delivery business to a large extent that may result in a shutdown or significantly decreased sales in the long run. Therefore, to sustain in the long run, use strategies and tips followed by leading brands and also closely monitor each aspect of the food delivery business.

Last modified: 8 Jul 2020