Online food delivery has grown into a booming industry. Just this year alone, the market is reported to be worth an incredible $1.02 trillion. Plus, the industry is projected to grow at a compound annual growth rate (CAGR) of 12.78% between now and 2027, resulting in a total value of $1.65 trillion by the end of the forecast period.
When looking at franchise opportunities, promising industry growth is important. However, before you decide whether an online food delivery franchise is right for you, it’s worth considering the challenges these businesses face.
The food delivery landscape is dominated by giants like Uber Eats, Grubhub, Postmates, and DoorDash. These platforms have become household names, synonymous with food delivery itself. They have the advantage of national brand recognition, established customer bases, and deep financial resources to better market their services and make improvements to their platforms. In such a crowded space, a new food delivery business may struggle to gain market share and could find itself outpaced by the larger brands within the industry.
One of the most significant hurdles for food delivery franchises is maintaining consistent quality control. When your business model relies on delivering food, you’re entrusting your reputation to factors often outside your control, such as the delivery process itself. Issues like delayed or incorrect orders, food temperature mishaps, and presentation can tarnish customer experiences. Unlike other franchise models, where the experience is curated from start to finish within the walls of your establishment, food delivery adds a layer of unpredictability that can lead to dissatisfaction – making customer retention that much more difficult.
In the world of instant gratification, the customer service aspect of food delivery can be unforgiving. A missed delivery or a wrong order can lead to immediate negative reviews, which are broadcasted online for all to see. The personal touch that can be offered in a brick-and-mortar setting is often lost in translation when dealing with online orders. This disconnect can make it difficult for food delivery services to build the kind of loyalty that other franchise opportunities can more easily foster.
The logistics involved in running a food delivery business are complex and multifaceted, presenting a significant operational challenge. Some things to consider include:
If you’re looking to invest in a franchise, consider one that offers more than just a transaction. Look for opportunities that allow you to be part of a community, to build customer loyalty, and to provide a consistent, top-notch experience. At Scooter’s Coffee, we’ve built our reputation on quality products and customer loyalty.
Our 664-square-foot drive-thru coffee kiosk franchise concept allows our franchisees to focus on fast and efficient service so customers can continue to enjoy their days. At Scooter’s Coffee, we don’t just serve high-quality, high-margin coffee beverages, we also make it a point to serve smiles. We even put smiley stickers on our cups!
Join the more than 700 Scooter’s Coffee locations nationwide. To learn more about our franchise opportunity, request information today, and one of our representatives will contact you soon.