How to Build an Online Food Delivery System?

How to Build an Online Food Delivery System?

Food business owners always look for new ways to ensure a steady revenue stream. Online food delivery apps are a sure-shot way of boosting sales with higher brand visibility. Restaurant owners have experienced a significant surge in sales after integrating food ordering systems for orders and deliveries. 

As a restaurant owner, if you are aware of the various benefits of on-demand food ordering software, you must plan to build one for your business. The blog offers a step-by-step guide to developing a custom food delivery app. 

Statistics of Online Food Ordering App

  • The market size of the food delivery app industry will reach $165 billion by 2029.
  • Revenue in the Meal Delivery Segment is expected to reach $507bn by 2027 with an annual growth rate (CAGR 2023-2027) of 6.49%.
  • The meal delivery segment will reach 2.5 million users in 2027.

How to Build a Food Ordering System?

Food Businesses have experienced significant increases in revenue and customer satisfaction. However, the success of the food delivery application will depend on its development process. Here is the step-by-step process of developing an on-demand food delivery application. 

Know What You Want

The first step in building an online food delivery application involves knowing the project requirements and objectives well. Businesses must know what results they want from the app. 

The best way to clarify the project requirements involves asking questions about your business objectives. Here are a few questions you can consider- 

  • What problem will the food delivery application solve?
  • What is the strategy to reach the target audience?
  • What convenience will the food ordering app offer to users?
  • Do you want to increase business visibility through the app?

Define the functionality

Once you are clear on the requirements and objectives for the food delivery app, the next step is to finalise the app features. So, what features should you include in the app, it will depend on a few factors. 

  1. Target audience- study the market to know what audience you want to sell your services. 
  2. App Budget- Your app’s budget will decide the complexity of the app’s functionality. 
  3. Competitors- Companies should also conduct a competitive analysis to know the strategies of their peers. They can target features they do not offer and attract a large audience. 

Decide the budget

The next step in creating an online food delivery software is deciding on the budget. Businesses should fix their budget beforehand to save time on the application. However, choosing the budget at the beginning of the project is essential; there should be some flexibility in the budget. 

The project requirements change as the development process progresses, so there should be room for budget adjustments.

Find the Development Partner

The most crucial step in developing an online food delivery application is seeking a reliable development agency. Companies can find top food app development agencies on websites like Upwork, Clutch, etc. They can consider the following factors while hiring a food delivery app development company. 

Experience- Look for the agency’s expertise in the domain and if they have a reputed name in the industry. 

Portfolio- Another thing to consider is the portfolio of work done by the agency. See if you can find a project similar to your needs in their portfolio. It is a plus for you if they have previous experience working on the same project. 

Testimonials- Study their client testimonials and see what their customers say about them. You can also reach out to them to know more about the agency. 

Start Developing the Online Ordering Platform

Once you hire a trusted development agency, sign the NDA to ensure the safety of your business data. After signing the NDA, discuss your app idea with developers and you can start developing your food delivery app. 

Advantages of Online Food Ordering System

Custom Food Ordering systems are the proven means for food business owners to boost their sales and brand reach. Let us look at the various reasons why your restaurant business needs an online food delivery system

Boosts Sales

The online food ordering system helps businesses establish their online presence and promote it online. With a wider reach online, they can engage with more customers and convert them into loyal customers. Also, the software tracks the number of orders placed, cancelled, customer taste preferences, etc. These analytical insights help the company understand the business deeper and see if the business is doing good. 

Convenience for Both

Customers can browse menus, place orders, and make payments from the comfort of their homes or on the go. On the other hand, managing orders becomes smoother with online systems. Restaurant owners can receive orders directly on the system and make deliveries hassle-free. 

24/7 Availability

Customers can place orders at any hour of the day from the comfort of their homes. Also, they can know where their food is with real-time tracking. The ease of placing orders from anywhere enhances customer satisfaction making them make repeat orders. 

Increased Efficiency

Restaurants can handle more orders efficiently, especially during busy times. This means more chances of taking advantage of potential business. With promotions, discounts, and special offers, restaurants can encourage repeat business.

How Much Does it Cost to Develop Online Food Ordering Software?

An online food delivery app offers many features. The cost of building an online food delivery app will depend on the app’s functionalities. The cost involved in other steps of the development process also affects the overall cost. It also covers the price of the development agency. 

The formula to calculate the total cost of an online food delivery application is –

Total development hours * Hourly Developer Cost

So, if the developer cost is $30 per hour and the food delivery app takes 3 months to complete, the total cost will be $57,600.

The cost increases with the complexity of the app. Typically, the food delivery app development cost ranges between $70,000 to $150,000.

Conclusion

With cutthroat competition in the market, restaurants and other food business owners must constantly evolve. Building and setting up online food delivery software helps them acquire new customers online rapidly. 

With a wider reach to customers online, their brand visibility increases, resulting in higher conversions and revenue. We hope the above food delivery app development process will help you build one for your business. Hiring a professional mobile software development company will help build an app like Uber Eats, Swiggy, or Zomato. 

However, if you can’t invest a huge sum in custom app development, readymade food delivery apps can be an ideal alternative. Saas-based applications are pre-built with key features to start the business online. Business owners can immediately start with the white-label food delivery app after desired customizations in branding like logo and colors. Some popular saas-based food ordering systems include- Foodiv, GloriaFood, Upserve, etc.