Rise of Online Meal Kit Business in Food & Restaurant Industry: Survival Innovation

meal kit delivery business

Impact of COVID-19 on Food Industry

COVID -19 Pandemic has affected all major sectors, but perhaps none has been more affected other than the food & tourism industry. This health crisis is also a major contributor to soaring unemployment and forced restaurant shutdowns.

 

According to Insights, casual-dining and fine-dining restaurants have witnessed a decline in their revenues by 85%. It is crystal clear that the coronavirus pandemic has engraved deep scars in the restaurant industry.

 

On the contrary, off-premise diners’ rate and innovation in the food sectors are witnessing rapid growth. In the US, UK, and Canada, online orders for pickup and delivery are booming. There is also an evident shift in the dining preferences of consumers. People are opting for food delivery at homes/offices and takeaways instead of dining at the restaurant.

 

Two significant contributors to growth in online food deliveries are the long duration of lockdown that forced people to stay indoors. Another is the lack of trust in hygiene levels at restaurants. People are finding online food deliveries safer and convenient options to enjoy tasty meals.

 

Innovation in the Food Industry

One more food trend which is witnessing a rise amid COVID-19 is meal kit delivery service. Younger and Middle-aged consumers drove this new interest in cooking during the lockdown. As the interest in cooking rose globally, so has the interest in meal kit services. Meal kit interest has increased most significantly among people aged 18-24 in the US and Canada.

 

The demand for meal kit delivery saw a steep rise amid the coronavirus- as people locked up at homes got tasty and fresh dinner solutions. In the Pre-COVID-19 world, meal kit viability was always under question, but with the arrival of the pandemic, meal-kit online orders started skyrocketing. As a result, companies started struggling to manage the large volume of orders.

 

Meanwhile, several restaurants worldwide that are struggling to stay in business with limited takeouts or delivery services have added restaurant meal kits to their menu.

 

For London’s Pizza Pilgrim brothers- James and Thom Elliot, lockdown brought an unprecedented opportunity to sell their DIY Pizza kits. The brothers said that in 2014 when they had launched the DIY pizza kit, it was a major failure, but now they have been selling 1000+ kits every day. “DIY Pizza kits are going to be something that will be staying around, after the vaccine in 2021,” James said.

 

Another example is James Knappett, chef-owner of Michelin-starred London restaurant Kitchen Table. For him, the decision to deliver a do-it-yourself (DIY) meal kit wasn’t easy, but it was essential for survival.

 

Knappett’s Kitchen Table targets a niche market. His meal kits cost around 150-250 pounds for two people and come with cooking instructions. Knappett manages to sell over 80+ DIY meal kits every week.

 

How Meal Kit delivery Business Can Help Restaurants & Start-ups?

 

The meal kit delivery service industry is a very prospective niche investment since it is one of the lucrative industries in the present times. Besides, it doesn’t even require a significant investment.

 

The benefits of the meal kit delivery business are as follows:

 

1. New Revenue Model

Meal kit delivery is an excellent opportunity for restaurants that are struggling to survive in hard-hit times. Along with take-away & deliveries, one could start meal kit services to explore a new revenue model.

 

2. Customer Loyalty

Customer loyalty and customer retention are crucial for business survival and growth, but with the arrival of coronavirus followed by lockdown, the restaurants had to shut, which directly hampered their customer base. However, with the meal kit food delivery business, restaurateurs can stay connected to their loyal customers by delivering customized DIY meal kits.

 

3. Less Operational Cost

The operating cost of the meal kit food delivery business is much lesser compared to traditional on-premise dining. Firstly, there is no need for a bigger workforce. Secondly, the cost of meal preparation is dramatically reduced. Lastly, the maintenance cost of a restaurant and other overhead expenses are moderate.

 

4. Better Interaction with Customers

A restaurateur or a start-up can create a strong customer base since they are not only sending a meal kit but are also sharing a recipe from their menu. A well-written recipe is like a story that can do wonders in building an emotional connection with the customers.

 

5. Customized Meal Kit

Offering customized meal plan options is a great way to grab the attention of customers—for example, choices of toppings for pizzas or sauces for salads.

 

Role of Eatance Restaurant & Food Delivery App

Eatance Restaurant App is a smart digital option for start-up & small-medium restaurant businesses to grow their Food & meal kit delivery service by reaching out to a vast expanse of customers.

 

How?

Eatance Restaurant & Food Delivery App is an on-demand food delivery service, which lets entrepreneurs have their restaurant app with 85% low-set up cost. The platform empowers the owners to run their offers, connect with customers and customize their offerings as per the availability.

 

Unique Features of the Eatance Restaurant & Food Delivery App

1. Recipe Section

Unlike other apps, Eatance Restaurant & Food Delivery App allows users to describe the ingredients of the meal and the preparation process. This feature builds an urge among customers to order more food or restaurant meal-kits.

 

2. Appealing Design

The app is created with a thoughtful & attractive design for a greater user experience.

 

3. Custom Notifications

The app allows the admin to send custom notifications to their customer. Admin can communicate across current offers and discounts to their customers at any time.

 

4. Customer App

The Customer app is integrated with a search option for a quick selection of food. Additionally, features like order history, multiple choices of payments, and filter for quick search enriches the overall food ordering experience of the customer.

 

5. Driver App

The Driver app is integrated with features like GPS, which keeps both customer and admin updated about the live location of the delivery executive. It also helps in easy navigation of the customer’s address.

 

6. Customer Engagement

A mobile application solution built with customer-focused engagement and user experience.

  • Bundle license of Eatance App (Customer App, Order Manager, and Delivery App)
  • Handholding and implementation support
  • Digital Consultation
  • Branding, Creative, and App Setup Services (add on)
  • Complete CustomizationMarketing and Maintenance Support from one place (add on)License Support

 

7. Scalable Quality Code

Eatance Restaurant & Food Delivery App is built to adapt modification quickly with few requirements of new coding.

 

To Sum Up!

Giving your food business a digital outlook has become inevitable with the onset of the COVID-19 pandemic followed by changed dining preferences of customers.

 

If you are still confused about bringing your business identity to the app, we have a few more convincing reasons.

 

1. Low investment

Building your restaurant or food delivery business app on Eatance will help you with a cost-saving of up to 85%.

 

2. Reduced Operation Cost

Amid the severe downfall of dine-in customers, operating just by relying on takeaways could be an unprofitable deal. However, starting or switching to cloud kitchens can bring relief to business, given the low investment cost & hassle-free management. Moreover, with the online food business, you can create a new market and generate attractive revenue.

 

Whether you’re a start-up, small or medium-scale restaurateur – we are here to help you take your business online. Our restaurant app service ensures a superior-quality app with niche functions, on-time app delivery, and continuous customer support.

 

Author avatar
Maulik Pandya
https://www.linkedin.com/in/maulikpandya/
I am a lifelong analyst and founder of Eatance. This wonderful life has provided me with all the opportunities to explore Coding, Business analysis, Solution Architecture, Project Management, Sales Consulting, Marketing, Operation, Talent acquisition, Mentor and a Leader. Apart from the professional aspect, I am a good husband, father of two beautiful daughters, a Generous friend, Garba lover (longest dance festival in the world), Zumba enthusiast, blogger and trying to be a good son.
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