How Online Delivery Services Have Changed the Franchise Game

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If you’re thinking about buying a restaurant franchise, it’s essential to keep an eye on the latest industry trends.

A 2021 research study by Zippia shows that 60% of Americans order delivery at least once per week and that the average American spends a total of $67 on takeout per week. As a whole, online food ordering currently accounts for close to 40% of total restaurant sales.

The common thread? The COVID-19 pandemic. This life-altering event changed the trajectory of the restaurant industry, pushing online ordering to the head of the table. That’s why, today, we’re breaking down the growth of online ordering and the many ways franchisees can benefit from it.

Let’s dig in.

The Growing Popularity of Online Delivery Services

In the world of restaurant franchises, there has been tremendous growth in online ordering. And this trend is only becoming more and more popular with both consumers and restaurant owners.

Because of this, it’s essential that today’s restaurant franchisees focus on online ordering and delivery services.

Even though customers aren’t dining on premises, their entire experience – from ordering to delivery – continues to be a reflection on the franchise business. These digital experiences are just as essential in retaining customers and building positive brand love.

According to Grand View Research, “The global online food delivery market is expected to grow at a compound annual growth rate of 10.8% from 2022 to 2028 to reach USD 388.74 billion by 2028.”

The data is clear: online ordering and delivery aren’t going away any time soon, and the franchises that continue to push the quality of this service will thrive.

How Franchise Restaurants Benefit from Online Delivery

There are several ways restaurant franchises benefit from the increasing demand for online ordering and delivery. They include:

Minimal Capital Expenditures

The great thing about online ordering is that franchisees can increase revenue without investing in additional kitchen equipment. After all, the kitchen is already putting out food, so employees just need to transport it to the delivery area for driver pickup.

Of course, there can be other hurdles – selecting the right online ordering technology is important, too.

Take Twin Peaks for example. Their online ordering process is seamless thanks to their partnership with Olo, a technology powerhouse in the direct digital ordering space. This partnership allows Twin Peaks to easily connect their restaurant to the online ordering business without having to create their own platform.

Instant New Customer Data Collection

Collecting data from customers can be challenging, to say the least. But people will happily input their information to order food online, resulting in an easy data collection tactic for franchisees.

This organic way of collecting first-party data from real customers allows you to both grow your email list and have the information you need to retarget customers in the future.

For instance, you can instantly send customers emails about upcoming promotions and events taking place at your restaurant. And if you’re wondering if email marketing is still effective, it is. According to Salescycle, “50% of people buy from marketing emails at least once per month.”

Franchise Buying Tip: As you’re looking at potential franchises, make sure to find out how the franchisor uses email marketing to help franchisees get customers in the door or ordering food online.

Ability to Extend the Reach of Your Restaurant Franchise

Having a strong, local presence online can make a big difference in who you reach. When potential customers search for “food near me” on their mobile devices, you want to make sure your restaurant is the result they find.

With that being said, when a customer clicks the link to your restaurant’s website and places an online order, the process still needs to be quick and painless. Why? Because according to Olo, “The fewer hoops guests have to jump through, the more likely they are to place a delivery order.”

In other words, having effective and easy-to-navigate online ordering and delivery technology matters a lot.

For example, the Twin Peaks restaurant franchise partners with Olo to provide customers with a wide range of pick up and delivery options like direct restaurant ordering, Google Ordering, Doordash, Uber Eats, Postmates, and Grubhub. With technology like Olo, all online ordering is managed in one place, integrating all delivery technology.

Wrapping Up

There’s no doubt: online ordering has changed the game for restaurant franchises. Just a few years ago, this stream of revenue didn’t exist, and now, it presents a massive opportunity.

Look to the future.

Not only is online ordering cost-effective, but as the data has shown, it will only continue to grow in profitability. If you are a franchisee or considering becoming a franchisee, now is the time to invest more into your online ordering services.

Interested in Getting Started?

Not only have we established that online ordering is an essential service for restaurants, but we’ve also shown how important it is to have a streamlined delivery program in order to be a leader in the space.

That’s why restaurant franchises like Twin Peaks have implemented Olo into every restaurant. This partnership makes it easy for franchisees to offer a high-quality service to customers and bring in more revenue.

Interested? Learn more about the Twin Peaks restaurant franchise opportunity.

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