Using Data to Power the Shift from Restaurant to Home

Food delivery apps are transforming the dining industry

Consumers are increasingly opting to dine in rather than out, ordering food from their favorite restaurants via smartphone apps for pick-up or delivery. The growing enthusiasm for delivery services like GrubHub, Uber Eats, and DoorDash is transforming every aspect of restaurant operations from logistics to physical facilities.

The Role of Data in Restaurant Operations

As the market for restaurant delivery grows, fine-tuning the logistics requires insight into customer preferences and delivery data. Writing in Forbes, Alan Zeichick reports that these considerations have wide-ranging effects:

Such changes create a ripple effect of logistical headaches and data-crunching challenges for restaurant operators. Knowing how often customers skip the lettuce on a double cheeseburger lets a restaurant order the right amount of produce for expected burger demand. And with the growth of delivery services, the packaging needs change—the food must stay fresh and delicious whether it’s eaten immediately in the restaurant, 10 minutes later in the car, or 45 minutes later when delivered by Uber Eats.

Restaurants that choose to develop their own smartphone apps for online ordering for pick-up or delivery can use data analysis of the transactions to provide food and deal recommendations for customers as well as personalizing the service.

Adapting Restaurant Facilities to Delivery Demand

The shift to accommodate delivery demand is even influencing the physical design of restaurants. The trend is giving new restaurant owners the option to go all-in on delivery, dispensing with dining rooms and wait staff. Called virtual restaurants or cloud kitchens, the restaurants don’t need a dedicated storefront and can lease kitchen space to prepare meals for delivery services. A growing number of entrepreneurs are choosing this option, according to Olivia Zaleski, writing for Bloomberg:

Mark Chase, the founder of Restaurant Real Estate Advisors, a consulting group that helps restaurant entrepreneurs find space and negotiate leases, said that the majority of his clients are interested in the kitchen-only business model. “There is a general scaling down on seating space and scaling up on kitchen space, as people just want to eat at home, on the couch,” Chase said.

Finding a Restaurant Data Analysis Partner

Whether standalone or part of a chain, restaurants hoping to capitalize on the demand for food delivery services need to be able to use data analysis to improve the customer experience. Our LMS experts can implement the robust data infrastructure needed to optimize delivery logistics. Call us today at 800.257.5902 to learn how we can help.

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