The food service industry is one of the most rapidly growing lines of modern business. Recent years have been marked by digital transformation. Changing consumer habits by making it possible to order food from mobile apps has made existing processes simpler. Improvements have introduced new efficiencies that were unimaginable a decade ago. In this article, I decided to look at what changes the food service industry has undergone in recent years. I will also describe what role mobile apps played in these transformations.
Table of Contents:
1. The Evolution of Food Ordering
2. The Role of Mobile Apps in the Foodservice Revolution
3. Financial factor in food ordering and delivery systems
4. Food service innovations for staff
b) Logistics and Supply Chain Management
c) Inventory and Taking Care of Food Shelf Life
d) Data Analysis and Business Insights
5. How FoodTech Apps Empower Restaurants with Real-Time Insights?
6. What the future holds for restaurants?
7. Few words from Railwaymen Team
Overview:
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According to the National Restaurant Association, sales in the foodservice industry are predicted to reach $1 trillion in 2024.
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Data from Grand View Research indicates that the North American foodservice market emerged as the largest globally, contributing a significant 24.1% share of revenue in 2023.
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According to speculation by CB Insights, Research & Markets, the entire food delivery app market is expected to reach more than $213 billion by 2030.
The Evolution of Food Ordering
Before I get into a discussion of mobile apps and their current impact on food services, let's go back in time a bit. In the 1990s and early 2000s, ordering food usually meant calling local restaurants or fast food chains. Advertising was largely limited to traditional media - TV commercials, print ads in newspapers, and flyers or menus delivered by mail or slipped under the door. Because the Internet didn't have the capabilities it has today, people relied on that form of communication.
In TV series such as Friends, characters often called to order food. Similarly, there is a scene in Home Alone in which Kevin, orders a pizza from a local restaurant. These are just a slice of the pop culture examples highlighting the importance of phone ordering at the time.
It only took less than 30 years for the restaurant landscape to go through a real revolution. The rise of mobile apps has changed the way people interact with restaurants. Phone orders were almost replaced by a form of ordering limited to the comfort of a few taps on a smartphone. This evolution has redefined the customer experience, making food ordering faster. As a result, traditional methods now seem almost ancient by comparison.
The Role of Mobile Apps in the Foodservice Revolution
Technology in foodservice has reversed previously known realities. Mobile apps have proven to be the biggest factor in these changes. The appearance of smartphones has caused foodservice mobile apps to replace traditional methods of food ordering, distribution and even logistics. Today Just Eat Takeaway.com, Uber Eats or even one of Railwaymen's clients, Shawarmer, are global brands shaping the image of the FoodTech industry.
Each platform simplified the food ordering system and made it easier to track each step. Users can browse menus, order food in a few clicks, or track delivery every minute. Automation in restaurants allows dining venues to handle more orders than phone calls. The way of acquiring customers has also changed. The flyers, which reached a small percentage of the target audience, have been replaced by personalized ads on the Web.
Financial Factor in Food Ordering and Delivery Systems
There are many ways to encourage a customer to take an order. One of them is various promotions. These can involve a loyalty program, where regular customers receive discounts. Often, restaurants encourage free delivery when a certain order amount is exceeded. Personalization during meal selection is also an interesting solution. By suggesting what the user might appreciate based on the history of recent choices, the restaurant creates a comfortable environment to make the final decision. A well-developed take-out food ordering app allows restaurant owners to diversify their revenues.
Equally important as the process of ordering food are the options for paying for it. Nowadays, the modern consumer is not limited to cash payments. Thus, many food service representatives decide to implement various forms of payment. All this to satisfy many customers and give themselves a chance to increase revenues.
So what are the methods mentioned above. I decided to collect some of the most important forms of payment for food ordering.
Digital Wallets
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enable secure storage of payment information
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fast transaction process
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during the payment, the card data are not shared with the merchant
Payment Gateways
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allow secure transaction processing and data encryption
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enable support for multiple payment methods
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easily integrate with e-commerce platforms
Contactless Payments
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fast and convenient transactions
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improved security features like tokenization and encryption
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increased popularity among consumers
Food Service Innovations for Staff
The food service industry is not just about take-away orders. Digitization has also affected logistics, inventory and billing processes. These improvements translate into cost savings for restaurants. FoodTech applications are also used by waiters, chefs, suppliers, managers and many professions affecting the food preparation process.
Point of Sale (POS) Systems
One of the key areas that affect restaurant operations is modern point-of-sale (POS) systems. Modern systems are not limited to classic cash registers. They are sophisticated cloud-based applications that integrate almost all areas of restaurant operations. POS allows restaurant owners to track sales in real time, see which menu items are the most popular and generate reports on orders. It also provides support for waiters, who can take an order on a mobile device and send it to the kitchen right away. These types of facilities improve efficiency and reduce the possibility of human error.
Logistics and Supply Chain Management
Logistics in a restaurant have a major impact on the proper operation of the restaurant. With mobile apps, restaurateurs can coordinate deliveries, team performance, and guest experience. Digital solutions to manage supply chains have proven to be a real turning point. Every restaurant cares about keeping their products fresh and available to chefs. That's why many apps have insight into where products come from, when they arrived at the warehouse and what level of inventory is present. These measures also translate into reduced food waste.
Inventory and Taking Care of Food Shelf Life
Anyone in food distribution realizes the importance of providing fresh goods to customers. Classic inventories and manual checking of dates make this process time-consuming. That's why solutions have been developed that allow you to record the product right after it is received. This makes it possible to check the end dates of individual items from within the application. An extra option is to set notifications that remind you of expiring dates. In this way, food waste is minimized and costs are better managed at the same time.
Data Analysis and Business Insights
The last functionality I would like to mention is data analytics. Digital solutions allow you to collect and analyze critical business information. You can easily see what dishes customers reach for most often and at what time of the day. Each piece of information is very useful, determining the menu, promotions and even sales results. This allows you to be competitive when many catering outlets are located nearby. It also has a positive impact on restaurant chains, which need solutions that integrate data from many food courts.
How FoodTech Apps Empower Restaurants with Real-Time Insights?
As you know, the most important factor is always the customer. That's why all tools, service, processes are tailored to fully satisfy him. Foodservice apps also allow you to gather information from customers, which used to be difficult to get. Today, it's easy for clients to share their impressions about meals and service. Sharing positive experiences not only drives marketing efforts, but also allows for branding. Feedback also enables to check satisfaction and make adjustments in case of inconveniences.
Moreover, analyzing data from customer feedback provides restaurateurs with practical information. Apps can aggregate and analyze feedback, highlighting trends such as popular dishes, recurring service issues or peak ordering times. By integrating feedback with digital tools, restaurants can better manage staffing, menu updates and logistics.
What the future holds for restaurants?
The restaurant industry is constantly undergoing professionalization and better customer service. Restaurateurs are increasingly using digital solutions not only to increase revenue optimization. They are also using them to build more competitive and efficient processes. Traditional practices of the past have given way to more streamlined, technology-based ones. But the industry's evolution is far from over. Modern technologies such as AI, automation and advanced analytics are likely to play a significant role in the future of FoodTech.
For small businesses, digitization offers growth opportunities and should not be seen as a threat. Many small points are already gaining the benefits of modern tools. As the industry continues to evolve, those willing to embrace these changes will be well positioned for potential success.
Few words from Railwaymen Team
At Railwaymen, we have a great deal of expertise creating FoodTech solutions to meet the demands of the restaurant business. We’ve had the pleasure of working with global brands like Shawarmer and Alamar, that manage large networks of restaurants. Our expertise includes creating POS systems, which have helped streamline the ordering process, improve restaurant operations, and support seamless take-out experiences.
We create simple and effective solutions that help foodservice companies overcome their challenges. Our business enables restaurants to operate more efficiently and serve customers better.
We are always open to new challenges and collaborations. If you want FoodTech app or improve your restaurant's processes, we are eager to work with you. Contact us and tell about your business.
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