This Service Aims to Help Restaurants Better Manage Online Orders

This Service Aims to Help Restaurants Better Manage Online Orders

It seems like we live in a time-strapped society. And now, with advances in technology and the expectation to have that technology work for you to make life easier, there is high consumer demand for the ability to have what we want, when we want and how we want it. Restaurant operators are in the service business and with that comes the responsibility to adapt to demand. Resistance could potentially lead to becoming forgotten by those who pay your bills— customers.

Needless to say, operators now have to deal with orders coming from all sorts of places. For one, orders that come from guests on location (of course), via phone for pickup or delivery, via food delivery apps like UberEATS and/or an equivalent, and even via online through food ordering services, like GrubHub and the like. Plus, with the rise of restaurant openings and an increasing market competition, most restaurant operators have to learn to cater to all to not lose out on their market share and stay afloat or, better yet, profit.

What is a restaurant operator to do to keep track of everything?

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Is The Food Delivery Industry About to Burst?

Is The Food Delivery Industry About to Burst?

Some believe the business model of the restaurant/delivery market is not sustainable, simply because companies like Grubhub, Seamless, and UberEats are venture capital-backed upstarts. This means these delivery-based companies currently have money being funneled in to stay afloat, while it produces upside-down margins.

Why upside-down margins, you ask?

Let's take a closer look at UberEats, for example. This company “is only profitable in 27 of the 108 cities where it’s offered — meaning they are actively losing money in approximately 70 percent of their markets. That’s with Uber taking 30 percent to 40 percent of every order from the restaurant and charging the customer a $5 delivery fee,” according to “Recode.”

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Uber Eats Technology Is Developing Delivery-Only Virtual Restaurants

Uber Eats Technology Is Developing Delivery-Only Virtual Restaurants
  • Uber Eats is using proprietary data to suggest virtual restaurant ideas to operator partners

  • Uber is dominating the food delivery game and new experiment suggests more to come

On this episode of On Foodable Weekly: Industry Pulse, we're looking at Uber Eats' newest experiment, virtual restaurants

That's right, the tech giant is taking another leap into the restaurant industry. This time, they're using their stores of data from UberEATS to analyze gaps in food offerings in American cities.

For example, Uber saw that a community in Chicago was searching the UberEATS app for fried chicken. But with no fried chicken-focused restaurants in the, area Uber approached one of their operator partners with the information. Knowing that SiPie Pizzeria had the right equipment, Uber proposed the idea of a whole new restaurant focused on fried chicken that is available only through the UberEATS app. The new concept, Si's Chicken Kitchen has since surpassed the original concept in delivery revenue. 

Watch the episode above to learn more about Uber's innovation in the restaurant industry. 

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There is Expected Growth for Virtual Restaurants

There is Expected Growth for Virtual Restaurants

These days food can be ordered from various “existing” restaurants since businesses are increasingly offering delivery options to their guests. Also you have an array of choices when it comes to delivery apps.

But, as Foodable has reported in the past, “virtual” restaurants are on the rise— especially since these “side” businesses present themselves as an additional source of revenue to places with the extra kitchen space. 

Chances are you have ordered from one yourself, already. Services like Ando, Munchery, Savory, DoorDash, Grubhub are available to order from depending on where a customer lives and which nonrestaurants exist in their area.

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DoorDash Offers Chefs “Virtual” Restaurant Space in Silicon Valley

DoorDash Offers Chefs “Virtual” Restaurant Space in Silicon Valley

DoorDash isn’t only making it easier for foodies to get food delivered directly to their door, the food delivery company is offering space for chefs and restaurateur looking to test delivery-only concepts.  

DoorDash has a 2,000 square foot-food commissary in Silicon Valley equipped with four kitchens that are being offered up as virtual restaurant space.

The company’s kitchens are perfect for restaurateurs looking to experiment with concepts that don’t have a traditional restaurant storefront and dining room. 

Virtual restaurants offer strictly online delivery. These concepts are on the rise as delivery becomes more popular with today’s consumer.

Kitava, formerly known as Mealmade is an on-demand virtual restaurant has gained traction in the San Francisco area. This virtual restaurant has made a name for itself by delivering healthy, made-to-order meals that are often are organic, paleo, and gluten-free. The meals are sold as at an affordable price point. 

Virtual restaurants are kind of like the modern-day food truck. They have less overhead due to the costs saved from not hiring as much staff and not having to pay as much for prime real estate. 

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