Can restaurants survive the era of delivery services?

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The food and beverage industry that spans the globe is one that has quite an impact in so many different ways. This is an industry that has been important from the very beginning, and it is an industry that will continue to be important going into the future. The latest evolution of the food and beverage industry, however, is arguably one of the most important to date. This is an evolution that has been around for a few years now, but is still effectively kicking into high gear.

Even (and especially) today, the food and beverage industry is in a current state of transition. Now that we live in the beginnings of the digital era, where modern marvels like the Internet and ecommerce reign supreme, it is inevitable that these modern marvels start making their impact in the world around us and the industries that make up the global society. With the Internet and ecommerce comes the influence in industries like the food and beverage industry that are geared towards transforming to realign with the way the world is moving.

For the food and beverage industry specifically, the rise of the delivery service has been the overarching answer to establishing and successfully achieving that realignment. So, the question remains: can restaurants and other establishments within the food and beverage industry survive the era of delivery services? This is a question that no matter which way you approach it, can literally have an answer that is split in half. And that is essentially exactly what has happened in this instance. The appeal of sharing an experience is the heart and soul of the food and beverage industry. So much so, in fact, that through every evolution in the industry, this has always remained the core contributing factor. Now, that core is remaining true but is beginning to be forced into a kind of collaboration where sharing the experience is more about convenience than it is about the experience itself.

That is why delivery services like Uber and Deliveroo has grown so fast; they provide a solution that allows diners to have the optimal convenience and efficiency of enjoying the meal they want, without having to have the commitment of going out of their way to get dressed up and travel to a selected destination to have that experience.

From the change in consumer habits to delivery apps, there is a digital transformation going on in the food and beverage industry that is certainly powered forward by consumers’ growing demand for convenience and efficiency above the experience of going to a venue. This is the new norm in the food and beverage industry. It is an intriguing paradox, because while restaurants and cafes and the like are indeed getting more business through these delivery services, they are also missing the opportunity to provide their customers the full experience of the venue ambience, atmosphere, great customer service and interaction with others.

To properly understand one side of the argument, it is important to understand both sides. On the one hand, there are those who firmly believe that the rise of the delivery service field in the food and beverage industry means that restaurants and the like will inevitably begin to fade away. With convenience comes the realisation that this is easier, and this is the power of the delivery service field. So the point of this argument is: adapt or die. On the other hand, however, are individuals who believe that a mix service (delivery and on-site) and collaborative efforts that are more fairly sectioned out are the answer to the survival of restaurants and other food and beverage institutions. In this argument, brick and mortar and online delivery will co-exist.

It is interesting, because the delivery service field has not necessarily taken work away from restaurants and the like, but it has definitely taken a significant cut of their margins on the argument that is has brought new business. Realistically, no side of the argument is entirely right and no side of the argument is entirely wrong. In addition, this whole argument support itself of the fact that the app delivery businesses are running on a loss in the attempt to capture market share. Whether these businesses will be able to sustain itself with the revenue it produces, and where all parties are winning, is yet to be seen.

Regardless of what side of the argument one stand, the recommendation is always to embrace change and make the best of it. If people are going online to order food, why not setup a catering software with your own online ordering website? If most people are ordering online why not operate a catering kitchen (also known as Dark Kitchen) and save on expensive retail rent? In other words, with the current changes in the food industry new opportunities will arise. So why not use this momentum to re-evaluate, adapt and take advantage of the digital era?

The food and beverage industry is one of the most enduring and inspiring industries. Throughout the decades, this is an industry that has proven time and again exactly how necessary and special it is. There have been many great evolutions in food and beverages, and each of them have come hand in hand with their own unique impacts. The current evolution sweeping throughout the global food and beverage industry is one of the most powerful ones. The digital era has brought with it innovations like the Internet and ecommerce. In the food and beverage industry, this newly emerging era has also introduced the delivery service and ability for food businesses without a physical establishment to sell online. At this point in time, it is difficult to accurately determine if restaurants and the like will adapt and survive or even grown through the opportunities generated by the current digital transformation. Time will tell.

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