You have witnessed that many technologies have been invented over the last decade. Entrepreneurs have developed so much in the food industry using technologies. Some restaurants had food delivery features earlier, but now, small local restaurants, eateries, big restaurants, and food franchises have food delivery features.
As you can see, the top global leaders in the food delivery business, such as DoorDash, Deliveroo, and Pizza Hut, have millions of active users. They have become big players because they provide contact delivery with seamless order processing within their app.
According to Statista, the global market for online food delivery will be approximately $1.22 trillion in 2024, with grocery delivery contributing $780 billion and meal delivery contributing $440 billion. By the end of 2029, the total market size will be approximately $1.92 trillion, in which grocery delivery will reach $1.38 billion and meal delivery will reach $540 billion. So, let’s understand the food industry trends for entrepreneurs:
Top 7 Food Industry Trends for Entrepreneurs
Entrepreneurs are revolutionizing the food industry. They have changed the dining experience and are currently working on reducing manpower. They want to change the way they deliver food. If entrepreneurs use advanced technology in food delivery, there will be less human error. Let’s discuss some food industry trends for entrepreneurs:
Grocery Delivery
People want household grocery items delivered to their doorsteps in their busy daily lives. During the COVID-19 pandemic, the demand for grocery delivery apps increased as people could not leave their homes. Food delivery apps were already launched before the pandemic but didn’t get a good response. Keep focusing on grocery delivery apps, as this industry is bigger than the meal delivery industry.
The demand increased during the pandemic and has continued to increase until now. Big players, like Amazon, have started as AmazonFresh, and Walmart has started as Express Delivery.
Restaurant Digitization
The good old style of serving a restaurant’s menus changes slowly as time passes. Nowadays, restaurants use digital menus instead of physical ones, reducing overall costs due to less manpower. It increases customer satisfaction and simplifies the ordering process.
Restaurant owners operate their businesses digitally and track the records of their customers and employees to evaluate the business. Based on the recorded data, the business owner should evaluate it monthly to see the profit and loss. Cashless transactions will be made to avoid contact between humans during the COVID-19 pandemic.
Direct Food Delivery from Restaurants
As you can see, restaurants use third-party food delivery apps. These apps require big commissions; one-third of the revenue goes to the restaurants. Restaurants should develop their own apps for food delivery. They should partner with a reliable food ordering app development company to help restaurants create customized solutions. Allowing them to retain more of their profits and gain greater control over the customer experience.
One big challenge they face is handling every operation, from food preparation to food delivery. If a mistake is made in any one operation, the customer will not get good food, and the customer retention rate will decrease.
Contactless Delivery
As the COVID-19 pandemic hits, people are likelier to go with contactless delivery. Contactless delivery arose as a digital payment method, and technology also developed successfully. Now, people trust these food delivery apps. Restaurants have also started to consider this for better customer service.
Initially introduced as a digital payment method, contactless delivery has rapidly evolved to encompass a broader range of technological advancements. From GPS tracking to real-time updates on order status, these innovations have enhanced the overall delivery experience for customers.
Food Delivery by Drones
Many big food delivery apps are investing in drones. This can be the best innovation for increasing their growth. By neglecting some delivery partners, they can reduce their expenses, decrease their manpower, and increase their revenue. In 2017, Domino’s made its first delivery through a drone in the Netherlands.
Food delivery apps can not rely on drones. Suppose a customer has to pay with cash on delivery; the concept of drones will not apply.
Delivery Subscription
Many big companies, such as Zomato, DoorDash, and Swiggy, offer a delivery subscription model to their loyal customers. The customer gets a discount on delivery or gets free delivery and heavy discounts on festivals. Customer retention rates increase by doing these.
These subscription models always attract people as they have some offers. The app sets some minimum order values for free delivery to customers, so you can not have free delivery if your order is not above the minimum price.
Food Trucks
Food trucks are reliable and have affordable prices. As these trucks are movable, people get fresh and hot food near their homes. With its growing demand, these trucks are increasing daily as they are affordable to make.
If you already have a food truck, you need an app to track the digital payments, inventory, and tracking orders. It will be easier and faster to track multiple things simultaneously.
Read also:- Top 10 Best Food Delivery Bag Companies in India
According to Mordor Intelligence, the market for food trucks is approximately $4.15 billion and is expected to reach $6.87 billion by 2029. The market is growing annually by 6.50%. In 2022, two men named Loblaw and Gatik started a driverless food truck business in Canada. Over time, they opened about 2,400 trucks across Canada.
Conclusion
In conclusion, staying updated with trends is key to success for entrepreneurs venturing into the food industry. Understanding consumer preferences, such as the rising demand for healthier options and sustainability, can guide business decisions. When you create your food delivery app, you must ensure the platform can quickly adapt to the changes and trends.
Embracing technology, like online ordering platforms and food delivery services, enhances customer convenience and expands market reach. Moreover, adapting to changing dietary habits, such as plant-based diets or ethnic cuisines, opens doors to diverse customer bases.
Collaboration with local producers and suppliers fosters community engagement and supports the growth of small businesses. Continuous innovation in product offerings and experiences keeps customers excited and loyal.