Benefits Of Having Food Delivery App For Restaurant Business

Benefits Of Having Food Delivery App For Restaurant Business | iCoderz Solutions

The restaurant industry has undergone a dramatic transformation, with food delivery apps becoming essential for business survival and growth. If you’re a restaurant owner wondering whether investing in a food delivery app is worth it, you’re asking the right question at the right time.

Recent industry data shows that restaurants with their own delivery apps see an average revenue increase of 30-40% within the first year. But the benefits extend far beyond just additional sales – from enhanced customer loyalty to operational efficiency, a well-designed food delivery app can revolutionize how you run your restaurant business.

Why Every Restaurant Needs a Food Delivery App in Today’s Market

The $150 Billion Food Delivery Revolution

The global food delivery market has exploded to over $150 billion in 2024, with mobile food ordering apps driving 70% of this growth. This isn’t just a trend – it’s a fundamental shift in how customers interact with restaurants.

According to McKinsey’s latest restaurant industry report, delivery and takeout now represent 40% of total restaurant sales, compared to just 15% pre-2020. For restaurant owners, this represents both an enormous opportunity and a critical business necessity.

Consumer Behavior Shift: 73% Prefer Mobile Ordering

Toast’s State of the Restaurant Industry report reveals that 73% of customers prefer ordering food through mobile apps rather than calling restaurants directly. Even more telling, 68% of customers are willing to pay higher prices for the convenience of app-based ordering.

This behavioral shift means restaurants without delivery apps aren’t just missing revenue opportunities – they’re becoming invisible to a growing segment of their potential customer base.

Top 12 Benefits of Having a Food Delivery App for Your Restaurant

Revenue Growth and Market Expansion

Access to 24/7 Sales Opportunities

Unlike traditional dine-in service, a food delivery app extends your restaurant’s operating hours virtually. Customers can place orders for future delivery even when your restaurant is closed, creating additional revenue streams without increased labor costs.

Restaurant owner Maria Rodriguez from Chicago saw her late-night order volume increase by 200% after launching her pizzeria’s delivery app. “Customers order for the next day’s lunch during their commute home. It’s revenue we never had access to before,” she explains.

Tap into the $50B+ Delivery Market

The U.S. food delivery market alone is worth over $50 billion annually. Restaurants with their own apps capture 100% of delivery fees, compared to losing 15-30% in commissions to third-party platforms like DoorDash or Uber Eats.

Real-world impact: A mid-sized restaurant generating $500,000 annually through delivery can save $75,000-150,000 in commission fees by using their own app instead of relying solely on third-party platforms.

Enhanced Customer Experience and Loyalty

Personalized Ordering Experience

Custom restaurant apps allow for sophisticated personalization that third-party platforms can’t match. Your app can remember customer preferences, suggest items based on order history, and offer personalized promotions.

Starbucks’ mobile app, which processes 25% of their transactions, demonstrates the power of personalization. Their app’s recommendation engine increases average order value by 18% through targeted suggestions.

Loyalty Programs and Repeat Business

Integrated loyalty programs within your restaurant app can increase customer retention by up to 47%. Unlike punch cards or third-party loyalty systems, your app provides complete control over reward structures and customer communication.

Success metric: Restaurants with app-based loyalty programs see customers order 2.3x more frequently than non-app users, according to Paytronix’s loyalty report.

Operational Efficiency and Cost Reduction

Reduced Staff Requirements

Food delivery apps significantly reduce phone order volume, allowing staff to focus on food preparation and in-restaurant service. This is particularly valuable during peak hours when phone orders can create bottlenecks.

Tony’s Italian Bistro in Austin reduced their front-of-house staff requirements by 30% during lunch rushes after implementing their delivery app, while maintaining service quality and increasing order accuracy to 98%.

Streamlined Order Management

Modern restaurant delivery apps integrate directly with point-of-sale (POS) systems and kitchen display systems, eliminating manual order entry and reducing errors. This integration can cut order processing time by 40-60%.

Operational benefit: Automated order routing to kitchen displays reduces food preparation errors by up to 85%, according to Restaurant Business Magazine’s efficiency study.

Data-Driven Business Insights

Customer Analytics and Preferences

Your restaurant app generates valuable customer data that’s impossible to collect through third-party platforms. This includes ordering patterns, peak demand times, popular menu combinations, and customer lifetime value.

Advanced analytics help restaurants like Sweetgreen optimize their menu offerings and pricing strategies, resulting in 12% higher profit margins on app-based orders.

Sales Performance Tracking

Real-time sales data from your delivery app enables dynamic pricing, inventory management, and staffing decisions. Restaurants can identify trends, forecast demand, and adjust operations accordingly.

Data advantage: Restaurants using app analytics see 23% better inventory turnover rates and 18% reduction in food waste, according to the National Restaurant Association’s technology study.

Restaurant Delivery App vs Third-Party Platforms: Making the Right Choice

Own App Advantages: Control and Profitability

Commission Savings: Third-party delivery platforms typically charge 15-30% commission per order. A restaurant processing $10,000 monthly in delivery orders saves $1,800-3,000 per month with their own app.

Customer Relationship Control: Third-party platforms own customer data and relationships. Your own app ensures direct communication with customers and builds brand loyalty.

Customization Freedom: Custom apps can reflect your brand’s personality, offer unique features, and integrate seamlessly with existing restaurant systems.

When Third-Party Makes Sense

Third-party platforms still serve important functions:

  • Market Discovery: New customers often discover restaurants through platform browsing
  • Marketing Reach: Platforms provide built-in customer acquisition
  • Operational Simplicity: No app development or maintenance required

Hybrid Approach for Maximum Reach

Most successful restaurants employ a hybrid strategy, maintaining a presence on third-party platforms for customer acquisition while directing loyal customers to their proprietary app for improved margins and relationship building.

Best practice: Offer exclusive deals or loyalty points only through your restaurant app to incentivize customer migration from third-party platforms.

Real Success Stories: Restaurants Thriving with Delivery Apps

Case Study: Local Pizza Chain 300% Growth

Giovanni’s Pizza, a three-location chain in Denver, launched its custom delivery app in January 2024. Results after 12 months:

  • Revenue increase: 285% growth in delivery orders
  • Customer retention: 67% of app users order monthly vs. 23% of non-app customers
  • Average order value: $8.50 higher than third-party platform orders
  • Profit margins: 22% higher on app orders due to eliminationof  commissions

“The app transformed our business model,” says owner Giovanni Rossini. “We went from surviving to thriving, and customers love the personalized experience we can offer.”

Fine Dining Adaptation Success

The Copper Kettle, an upscale restaurant in Portland, initially resisted delivery, viewing it as incompatible with their fine dining concept. Their custom app, launched in 2024, proved otherwise:

  • New revenue stream: $180,000 additional annual revenue
  • Market expansion: Reached customers 15 miles beyond the typical dining radius
  • Menu innovation: Developed delivery-specific menu items with 35% margins
  • Customer satisfaction: 4.8/5 app rating with premium delivery experience

Implementation Guide: Getting Started with Your Restaurant Delivery App

Essential Features Every Restaurant App Needs

Core Functionality:

  • Intuitive menu browsing with high-quality food photography
  • Real-time order tracking and delivery updates
  • Multiple payment options, including digital wallets
  • GPS-based delivery zone mapping
  • Push notifications for order updates and promotions

Advanced Features:

  • AI-powered recommendation engine
  • Integrated loyalty and rewards system
  • Social sharing capabilities
  • Voice ordering integration
  • Scheduling for future orders

Development Timeline and Costs

Basic App Development: 3-4 months, $15,000-30,000

  • Standard menu display
  • Basic ordering and payment
  • Simple delivery tracking

Feature-Rich App: 5-6 months, $35,000-60,000

  • Advanced personalization
  • Integrated loyalty programs
  • Analytics dashboard
  • Marketing automation tools

Enterprise Solution: 6-8 months, $75,000-150,000

  • Multi-location support
  • Advanced integrations
  • Custom branding and features
  • Dedicated support

Marketing Your New Delivery App

Launch Strategy:

  1. Pre-launch buzz: Email campaigns to existing customers
  2. Incentive programs: First-order discounts, loyalty point bonuses
  3. Staff training: Ensure all team members can promote the app
  4. Social media campaigns: Showcase app features and benefits
  5. In-store promotion: Table tents, receipts, and verbal promotion

Ongoing Marketing:

  • Push notification campaigns for new menu items
  • Seasonal promotions and limited-time offers
  • Customer referral programs
  • App-exclusive deals and early access to specials

Measuring Success: KPIs and ROI for Restaurant Delivery Apps

Key Metrics to Track

Financial Metrics:

  • Monthly app revenue growth
  • Average order value comparison (app vs. other channels)
  • Customer acquisition cost through the app
  • Commission savings vs. third-party platforms

Engagement Metrics:

  • App download and activation rates
  • Monthly active users
  • Order frequency per user
  • Customer retention rates

Operational Metrics:

  • Order accuracy rates
  • Delivery time performance
  • Customer satisfaction scores
  • Staff efficiency improvements

Expected ROI Timeline

Months 1-3: Investment phase with marketing costs and initial user acquisition 

Months 4-8: Break-even point for most restaurants 

Months 9-12: 25-40% ROI typical for well-executed implementations 

Year 2+: Continued growth with 50-100% ROI potential

Industry data shows that restaurants typically recoup their app development investment within 8-12 months through increased revenue and commission savings.

Future-Proofing Your Restaurant with Food Delivery Technology

The restaurant industry continues evolving rapidly, with emerging technologies creating new opportunities:

Artificial Intelligence: Predictive ordering, dynamic pricing, and automated customer service

Voice Technology: Integration with smart home devices for hands-free ordering 

Augmented Reality: Virtual menu experiences and food visualization 

Blockchain: Enhanced food safety tracking and supply chain transparency

Restaurants that invest in delivery app technology today position themselves to adapt quickly to future innovations and maintain a competitive advantage.

Expert Insight: “Restaurants that embrace delivery technology now will find it much easier to integrate future innovations. The data, customer relationships, and technical infrastructure they build today become the foundation for tomorrow’s opportunities,” says Sarah Chen, Restaurant Technology Consultant at TechServe Solutions.

Take Action: Transform Your Restaurant with a Food Delivery App

The evidence is clear: food delivery apps aren’t just beneficial for restaurants – they’re essential for long-term success. With consumer behavior firmly shifted toward mobile ordering and delivery expectations continuing to rise, restaurants without their own apps risk being left behind.

Whether you’re a small family restaurant looking to expand your reach or a multi-location chain seeking better profit margins, a custom food delivery app offers measurable benefits that compound over time.

Ready to get started? Consider these next steps:

  1. Audit your current delivery operations and identify areas for improvement
  2. Research app development partners with restaurant industry experience
  3. Define your unique value proposition and required features
  4. Create a realistic timeline and budget for implementation
  5. Plan your launch and marketing strategy to maximize adoption

The restaurants thriving in today’s market aren’t just serving great food – they’re meeting customers where they are, with the convenience and experience modern diners expect. Your restaurant delivery app isn’t just technology; it’s your competitive advantage in the digital-first restaurant landscape.

For more detailed guidance on implementing restaurant technology, visit the Restaurant Technology Network for industry insights and vendor comparisons.

Transform Your Restaurant Business Today

Explore proven benefits of food delivery apps and future-ready strategies for restaurant growth in 2025.

About Author

Ashish Sudra

Ashish Sudra is the Founder and Chief Executive Officer (CEO) at iCoderz Solutions. He has over 15 years of experience in the information technology and services industry. He is skilled in Digital Marketing, ASO, User Experience and SaaS Product Consulting. He is an expert Business Consultant helping startups and SMEs with Food and Restaurant Delivery Solutions.

9 comments
Leave a Reply
Related Posts