Have you ever bought anything online before? Chances are that you have.
Here is another question. Have you ever bought food online before? Many of you will probably answer no. But, as we look at markets all across the country, we can safely say that this trend is changing, and its changing quick!
It is now estimated that almost 10% of restaurant orders are coming from online ordering. This is significant when you consider that 2012 US restaurant industry sales amounted to $631.8 billion.
So, what does this mean? Simply, there is a lot of money to be made by tapping into the online food ordering market. The modern digital consumer is now using their mobile, desktop and tablet devices to research and buy products online. Buying has never been simpler, or more convenient. And, naturally this trend has transferred over to the restaurant industry. In fact, its projected that by 2016, mobile technology will influence up to 23% of food and beverage sales, up from 5.7% in 2012.
The biggest lesson to pay attention to here is not the growth of the industry, nor how much it is worth, but instead the need to realize the changing purchasing behaviors of target customers. All consumers are online now, especially those people “on-the-go”, looking for convenience in their purchasing activities. This is where online food ordering has evolved.
People are now able to look at a menu and order items off of their personal mobile devices, while they are on the go, and then have their food ready for pick-up when they arrive. Its convenient. Online foodies are not only converting more often, they are also spending more money when they make a purchase. Isn’t this the key to greater profit margins – frequent higher value conversions!
According to mobile commerce daily, mobile searches related to restaurants have a conversion rate of 90% with 64% converting within the hour. This a very lucrative market for restaurant owners to tap into, and its experiencing explosive growth all across the country, in towns and cities of all sizes. The digital buyer is everywhere, in every industry.
Of the restaurants that have a mobile app, only 35.2% of them offer online ordering capabilities to their customers.
This market is a long term cash cow. Its already proven. It has incredible growth prospects. Buyers are converting, and doing so strongly. Yet, it is still largely untapped.
Online ordering is a wave every restaurant should be riding in today’s digital marketplace!