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Unveiling the Taste of Success in Food Delivery App Development – 3 Business Case Studies

Statistical Facts about Food Delivery Apps – Because Numbers Don’t Lie

Global growth of food delivery apps, revenue generation from the food delivery market, mobile app usage trends.

• Impact of Global Pandemic - COVID-19

Benefits of Food Delivery Mobile App Development

Increased reach and higher revenue, eliminates the entry barriers, unmatched convenience for consumers, personalized user experience, increased user engagements, predictive analytics, appinventiv: a pioneer in food delivery app development, kfc case study, pizza hut case study, domino’s case study, food delivery app development cost, how to make a food delivery app, leverage appinvenitv’s experience to build a food delivery app.

In a world of evolving lifestyles and constant motion, how we dine is changing dramatically. We crave something quick and convenient to satisfy our culinary desires. And as our culinary cravings meet the digital age, food delivery applications emerge as a revolutionary solution, redefining how we enjoy the delights of gastronomy.

In today’s fast-paced and digital landscape, on-demand delivery apps have become an inseparable part of modern lifestyle, with their widespread popularity and penetration in our lives continuing to grow.

The proliferation of food delivery apps has contributed to a significant diversification of culinary choices available to consumers. According to industry reports, users now have access to an extensive array of restaurants and cuisines at their fingertips, fostering a culture of exploration and discovery within the realm of gastronomy.

So, what factors contribute to the immeasurable success of food delivery apps? Well, the primary driver is a food delivery app development company that fuels the fire of building a cutting-edge solution that can efficiently satiate consumers’ desire for convenience and culinary cravings.

Appinventiv, a leading player in app development, plays a pivotal role in building next-generation restaurant applications . We have a proven track record of redefining the success of food delivery giants like KFC, Pizza Hut, and Domino’s.

Let’s get a sneak peek into the growing dominance of food delivery mobile app development, the statistical facts, cost, process, and case studies of food delivery businesses.

The evolution of food delivery services has been marked by a surge in demand for digital applications. Changing consumer preferences, coupled with the need for speed and convenience, have driven the adoption of food delivery apps. Let’s throw light on some statistical facts about food delivery services:

According to Statista , the global food delivery market hit $2.52 trillion in 2021 and is anticipated to cross $4.43 trillion by 2028, growing at a CAGR of 9.9% from 2021 to 2028. This underscores the sustained and robust growth of the food delivery industry.

The global revenue from the online food delivery market is projected to reach a value of $329.7 billion by 2027. This growth trajectory demonstrates the massive potential for businesses to capture a significant market share.

As of 2022, the number of mobile app downloads related to food and drink worldwide amounted to about $717 million. This statistic highlights the increasing reliance on mobile apps for food-related activities, from ordering meals to exploring new culinary experiences.

Impact of Global Pandemic – COVID-19

The pandemic accelerated the adoption of food delivery apps, with a surge in demand for contactless dining options. A McKinsey report noted a 78-93% increase in the use of food delivery apps during the early stages of the global health crisis.

The food industry is growing exponentially, giving entrepreneurs countless reasons to invest in food delivery app development and emerge as key players in this rewarding sector. Here are some of the reasons why leveraging the power of food delivery apps can be highly profitable for businesses:

For the restaurant industry, using a mobile app translates into capturing a broader consumer segment worldwide, satisfying the needs of potential users who might otherwise miss their offerings. This extended reach can significantly boost sales and increase revenue, contributing to the overall growth and success of the restaurant.

DoorDash is a leading example of a global food delivery business, catering to customers’ culinary needs across Canada, Australia, and the US.

The food delivery sector is well-regarded for its minimal entry barriers, fostering an environment that readily embraces emerging startups and entrants. Unlike traditional businesses that require substantial initial investments and intricate infrastructures, the on-demand food delivery solutions empower aspiring entrepreneurs to start their food delivery ventures with comparatively modest investments.

Also Read: 3 Top Reasons to Invest in a Mobile App for Your Restaurant

Mobile apps bring unparalleled convenience to food lovers, bringing a host of culinary items from different regions to their fingertips. With just a few taps on their smartphones, users can effortlessly browse through diverse menus, place orders, and track their deliveries in real-time. This streamlined process eliminates the need for traditional methods like phone calls or physical menus, offering a great level of convenience that aligns with today’s fast-paced lifestyle.

Mobile apps enable a personalized user experience, allowing businesses to tailor their offerings based on user preferences and behaviors. With the emerging integration of data analytics and artificial intelligence in the restaurant industry, businesses can predict customer choices, suggest personalized menus, and even offer exclusive discounts or coupons. This level of personalization enhances the overall user experience and increases their loyalty to the brand.

A feature-rich food delivery app enables restaurants to interact actively with their customers through push notifications , messages, emails, or even chatbots . This helps businesses inform users about their latest offers, loyalty programs, and lucrative deals and discounts, keeping them engaged in your offerings.

Also read: How Much Does it Cost to Build a Food App Like Grill’d in Australia  

Mobile apps provide restaurant owners with valuable data analytics . From tracking order trends to comprehending peak hours, these insights empower businesses to make informed decisions. Additionally, mobile apps streamline the ordering and delivery management process, reducing the risk of errors and ensuring operational efficiency.

These are some of the most common benefits of food delivery app development . As technology advances, businesses that opt for mobile app solutions are poised to experience more transformational advantages and sustained success in the competitive landscape of the food delivery industry.

Related Article: A Comprehensive Guide on Using Predictive Analytics for Mobile Apps

We, as a leading IT company, have established ourselves as a frontrunner in app development, particularly in the food delivery sector. With a proven track record and a commitment to innovation, we have successfully crafted innovative solutions for global businesses that elevate user experiences and drive growth.

Our approach involves a meticulous understanding of client needs, leveraging cutting-edge technologies, using the best security measures, and delivering apps that stand out in the competitive market.

Let us elucidate the case studies of three business giants in the food industry and witness how we turned their distinctive vision into an enticing reality, capturing the eyes of users worldwide.

KFC , a leading fast-food company with a global presence in 150+ countries, operates under Americana Group in the Middle East and is the world’s second-largest restaurant chain.

Challenges Faced by KFC

• Nearly 90% of KFC’s total orders were coming through aggregator apps, raising concerns about the brand’s dependency on third-party platforms.
• With a significant portion of orders funneled through aggregator apps, KFC faced increased operational costs and the risk of potential damage to the brand’s digital image.
• The challenges escalated when KFC started receiving negative reviews on its own platform, primarily related to a poor user experience.

Appinventiv’s Strategic Solution

KFC, facing such challenges in the Middle East, turned to Appinventiv for a comprehensive solution with a vision to develop seven KFC mobile applications within a year. We took these challenges as an opportunity to prove our expertise by building a robust direct-to-consumer digital channel for KFC.

We developed seven custom food delivery apps in the Middle East across – the UAE, KSA, Kuwait, Egypt, Qatar, Bahrain, and Oman, ensuring a personalized user experience for specific regions and demographics.

Results and Impact

The development and launch of seven KFC mobile applications within the stipulated timeframe helped KFC witness a transformative shift in its digital delivery channel, leading to significant positive outcomes:

• 22% increase in conversion rate
• 4.5 average rating on the Google Play Store and App Store
• Over 50% of the total orders coming through the app
• Over 60% increase in repeat purchases across channels
• Highest customer lifetime value across all order modes
• Reduced resilience on aggregator apps from 90% to 50%
• 30,000+ orders filled through the app per day.

Pizza Hut , one of the largest multinational restaurant chains, operates 17,639 restaurants worldwide as of 2020.

Challenges Faced by Pizza Hut

• Pizza Hut faced challenges in maintaining a strong digital presence. Their existing app struggled to keep pace with modern standards, hindering its performance.
• The app lacked an extensible and scalable architecture, limiting its ability to adapt to the evolving needs of today’s digital age.
• Customers encountered difficulties navigating the app, placing orders, and enjoying a seamless interaction with Pizza Hut’s offerings, leading to poor user experience.

Our team of 1200+ tech evangelists recognized the need for a comprehensive overhaul of Pizza Hut’s app. Thus, we conducted thorough research to understand the unique needs of Pizza Hut’s target audience and created a user-friendly design that resonated with users, ensuring a more personalized and engaging experience.

To meet industry standards, we leveraged the latest tools and technologies to enhance the app’s functionality and keep it at the forefront of trends.

The redesigned app provided Pizza Hut with a revitalized digital presence, aligning with industry standards, meeting users’ expectations, and elevating the brand’s image in the digital space, which resulted into:

• 50K app downloads
• 30% increase in conversion rates
• 7 seconds increase in screen transition time
• Improved customer engagement and business growth
• Increased user interactions and order placements

Domino’s is a well-recognized powerhouse of pizza delivery worldwide, operating over 14,000 pizza restaurants in 85+ countries and delivering more than 1.5 million pizzas every day.

Challenges Faced by Domino’s

• Domino’s experienced a rising bounce rate on their mobile app, indicating that users were navigating away without completing orders.
• The company faced challenges in retaining customers and received negative reviews in terms of poor app experience, difficulty in placing orders, and an in-app user journey.
• One of the major concerns the brand faced was subpar UI/UX design , which led to a decrease in customers’ attention and engagement on the brand’s app.

Domino’s collaborated with us to resolve its pressing challenges and redefine its business identity in the market. We started the journey with a deep analysis of the core issues hindering the performance of Domino’s pizza delivery app. We dove deep into customers’ reviews and pinpointed the problem area that was making users’ in-app journeys complex.

We developed strategic solutions to revamp the UI/UX design, streamlining the app’s functionality, making it more efficient, and enhancing the overall user experience.

• The collaboration with Appinventiv facilitated the reinvention of Domino’s business image, reinforcing its position in the competitive food delivery market.
• Our refined UI/UX strategy reduced the bounce rate and increased the mobile app conversion rate by 23%.
• The UI/UX redesign contributed to a significant improvement in customer engagement. The users who were once leaving the app without placing the orders now spend time within the app to track their orders in real time.

When planning to make a food delivery app like KFC, Pizza Hut, or Domino’s, people often contemplate the restaurant app development cost . While the cost to build the latest food delivery app is one of the most crucial considerations, it is challenging to quote an exact amount as the Pizza Hut, Domino’s, or KFC food delivery app development cost significantly varies depending on multiple factors.

Some of the most important factors that affect the food delivery application development cost are:

• The intricacy and sophistication of the app’s design, level, features, and functionalities.
• The number of third-party plugins available in the app to improve user engagement.
• The targeted platform (Android, iOS, or cross-platform ) on which the app will run.
• Intensity and frequency of regular maintenance and updates required to ensure the apt app performance.
• The geographic location of the chosen mobile app development company. For instance, developers in regions like the US or the UK charge a whopping amount of $90-$110 per hour, while developers in India typically charge a more budget-friendly price, i.e., $20-$70 per hour.

On average, KFC, Pizza Hut, or Domino’s food delivery app development costs range between $30,000 to $300,000 or more, depending on the aforementioned cost-influencing factors.

Here is a visual presentation of the factors affecting food delivery mobile app development cost

There is no better way to tap into the flourishing food market than to make a feature-rich application for your business. However, making an app for food delivery is a complex and challenging process, requiring professional expertise and experience in building similar applications.

The food delivery app development process is quite similar to building any other mobile app. It passes through the same stages of project planning, design conceptualization, feature integration, coding and development, rigorous testing, and ultimate deployment.

In straight terms, developing a food delivery app like KFC, Pizza Hut, or Domino’s requires meticulous planning, visually appealing UI/UX design, the right tech stack, seamless feature integration, and continual maintenance.

Thus, you must consider outsourcing your project to a professional app development company to ensure a smooth and successful food delivery app development process. Collaborating with an experienced restaurant app development company with a proven history of developing similar solutions not only improves your chances of building a successful solution but also ensures its ongoing success in the competitive market.

For an in-depth understanding of the food delivery application development process, delve into our comprehensive guide on Mobile App Development for Businesses .

You may like to know: How to start your own food delivery business.

Appinventiv’s expertise in food delivery mobile app development has played a pivotal role in revamping the applications of industry giants – KFC, Pizza Hut, and Domino’s, redefining their brand image.

We are committed to shaping the future of food delivery apps through the effective utilization of cutting-edge technologies, innovative solutions, a deep understanding of market dynamics, and a commitment to staying ahead of industry trends.

These case studies serve as a testament to the transformative impact that our strategic app development services can have on the success of food delivery businesses.

So, if you also want to create a food delivery app like KFC, Pizza Hut, or Domino’s, don’t hesitate to partner with us . Our skilled team will stand by you throughout the food delivery app development process, helping you take your business to greater heights.

Q. What features can be added to build a food delivery app?

A. Building a successful food delivery app requires incorporating multiple features to enhance user experience. Mentioned below are some of the most essential features to add to a food delivery app :

• User registration and profiles
• Real-time order tracking
• Secure payment gateway
• Search and filters
• Rating and reviews
• Promotions and discounts
• Multiple platform compatibility
• Referrals and rewards
• Push notifications
• Multi-language support
• Geolocation services
• Social media integration
• Customer support chatbot
• Offline accessibility
• Analytics and reporting

Q. How much time does it take to make a food delivery app?

A. The time required to develop a food delivery app can vary significantly based on several factors, including the app’s complexity, choice of platform (iOS, Android, or hybrid), feature list, tech stack, UI/UX design, and the location of the app development company.

On average, a simple app with basic features can take around 4 to 9 months to develop, while a more complex app with advanced features may take 9 months to a year or more.

You should define your clear project objectives and discuss your app idea with an experienced development team to know the exact timeline it will take to bring your vision to life.

Q. How much does it cost to develop a food delivery app?

A. Determining the cost of developing a food delivery app involves considering various factors such as the app’s features, complexity, platform choice, design intricacies, and the location of the development team.

On average, food delivery app development costs range between $30,000 to $300,000 or more.

How Much Does it Cost to Build a Food App Like Grill'd in Australia?

The surge in demand for food delivery apps is undeniable, reflecting a shift in consumer behavior toward convenience and instant gratification. as more people seek hassle-free ways to enjoy their favorite meals, these apps have risen to the occasion, not only meeting this demand but also overcoming significant challenges in the process.  by addressing issues….

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Eliminate the time-consuming and error-prone hassle of manually entering orders from multiple disconnected tablets into the POS system. MENU Link streamlines your handling of orders from delivery marketplaces and other third-party channels to maximize efficiency, minimize order errors and save time.

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Turn your restaurant delivery from a pain to a competitive advantage. Take all the extra logistics off your staff’s plate with automated dispatching and ensure that your delivery orders are fulfilled on time through your own drivers or a third-party fleet.

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MENU is a market-leading eCommerce platform for global restaurant brands, powering all digital customer touchpoints from mobile, web, kiosk to delivery marketplaces. We provide restaurant brands with the tools they need to grow their digital business, manage orders from all channels and for all order types, orchestrate their delivery operations, and fully control their digital experience to retain a direct customer relationship.

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Tiffany Disher, General Manager, MENU North America, an omni-channel ordering solution to futureproof restaurant’s growing digital sales needs. Before taking on this new role in January 2023, she was an integral part of Punchh’s growth story. She has advised hundreds of customers over the past eight years on their loyalty strategies both from a base program standpoint as well as ongoing marketing strategies. Before Punchh, Tiffany worked for Schlotzsky’s where she supported the brand marketing team by leading loyalty, eClub, R&D, Franchise advisory council and marketing analytics. Tiffany has her Bachelor’s of Science in Economics from University of Oregon and Master’s in Business with a specialty in Marketing from Baylor University. An avid golfer, hiker and mom of two small children, Tiffany spends her limited free time entering into baking competitions.

Aaron Allen » Insights » 5 Case Studies to Help You Grow in the Restaurant Industry

5 Case Studies to Help You Grow in the Restaurant Industry

With over 2,000 engagements across 100+ countries, Aaron Allen & Associates has helped some of the world’s most recognized restaurant chains, investors, suppliers, and tech companies achieve remarkable growth. We’re sharing five restaurant case studies that showcase how we’ve driven enterprise value and transformed challenges into opportunities.

These examples offer insights into how strategic actions can lead to significant, measurable results….

Our client list, as may be expected, includes many esteemed brands throughout the world. Moreover, our experience means that we have a deep knowledge of the players, market dynamics, trends, and both the micro and macro factors shaping the industry around the globe.  We are restricted by confidentiality agreements and the boundaries of our own ethical sensibilities from disclosing our clients past and present, and therefore do not provide full client lists out of an abundance of caution for discretion.  Below is a brief sampling of some of the initiatives and results we have helped our clients implement and achieve.

Restaurant Case Study #1: Casual Dining Chain Leveraging the Menu as a Catalyst for a Turnaround

Focused on reinvigorating a  casual dining  national brand through  strategic marketing , operational improvements, and executive leadership guidance during critical transition periods.

BACKGROUND AND CHALLENGE

COMPANY STATS:

• Enterprise Value: ~$2b
• Sales: >$1b
• # Units: 100-150 range

Problems identified by AA&A:

• Slow service speeds and long customer wait times
• Highest volume profit centers bleeding the most traffic
• Understaffed in peak periods
• High employee turnover
• Inefficient equipment plans and layouts
• Menu misaligned

ACTION AND APPROACH

Granted special access to extensive data, AA&A utilized advanced data science techniques to identify and address operational bottlenecks and market opportunities.

• Process flows
• Menu ideation
• Signature items
• Capacity assessment
• Productivity benchmarking
• Guest experience assessment
• Price and performance correlation
• Menu merchandizing recommendations

RESULTS AND IMPACT

• Recommendations for  changes in kitchen equipment  leading to faster service and improving returned guests statistics
• Recommendations on ”can’t do at home” items, extensions on customization ability, signature items
• A streamlined menu helped improve margins, with Adjusted EBITDA going from 23% pre-engagement to over 27%

Take Action Today

Restaurant case study #2: multi-brand portfolio strategic mid- and long-term business plan advisory .

The client was a multi-brand, multi-product platform in  Latin America .

COMPANY STATS

• The group had 10-15 brands in LATAM and was backed by one of the most important family offices in the region
• Annual revenue in the $40m-$50m range, ~10% EBITDA

Scope of work:

• 5-year plans and priorities
• Roadmap and critical path
• Budget and CAPEX parameters
• Shared services and infrastructure
• Broad-brush organizational design
• Post-pandemic growth milestones
• Identifying target growth markets
• Brand strengths  and opportunities
• Franchising vs. corporate expansion
• Business model recommendations
• Timelines for expansion

Some of the strategic advice given by AA&A that the company followed:

• M&A: Divest — AA&A recommended divesting brands to focus on the high achievers. The company exited one of the brands identified as a low-margin brand
• 5-year plans are starting to be applied, with remodels happening selectively as well as SG&A, food cost, and labor cost optimization
• Labor cost optimization opportunity in one of the countries
• Opportunity to Optimize corporate SG&A with the divestiture of low-performing brand and units

Restaurant Case Study #3: Commercial Due Diligence and Investment Thesis Validation for Foodservice Tech Company

We supported a middle-market investment group in North America with more than $200m in assets under management investing across more than 20 industries. The company was doing  diligence  for an investment in a restaurant technology company in the U.S.

TARGET COMPANY STATS

• Leading company in its category (top two by sales)
• Had raised a cumulative of close to $100m in funding at the time of the project

Support with custom research to evaluate the market, positioning, and risk of a target company in the foodservice technology space. Insights into the foodservice industry landscape included:

• State of the Industry
• Total Addressable Market
• Competitive Landscape (past, present and future)
• Timelines for Growth, Partnerships
• Consumer Decision Process, Penetration and Retention
• Adoption Rates
• Risk and Relevance for the Technology
• Disruption and Mitigation Strategies
• Forward-Looking Support with Investment Thesis

ADVISE AND IMPACT

• The diligence work from AA&A advised in favor of the investment, with a few yellow flags for competitive threats
• Three years later, the target company had its IPO and raised more than $100m in cash, giving an opportunity to exit the investment and make a return in a short time

Start a Transformation

Restaurant case study #4: qsr operations audit and sales turnaround for  multi-brand f&b group.

Illustrated comprehensive value creation through operational and financial analysis, leading to an IPO and substantial revenue growth. The focus was to streamline operations, ignite growth, and pave the way for a substantial IPO.

• ~20 brands across 15-25 countries and 2,000+ outlets
• Large operator in Food Away From Home and QSR across MENA
• Master franchisee and proprietary brands
• On-site field work, visiting every major market for each brand (1k+ photo observations)
• P&L gap analysis
• Systems gap analysis, accuracy, SOPs assessment
• Location performance cross-section assessment
• Labor analysis
• Purchasing analysis, supplier analysis
• Menu analysis, comps
• Tech stack gap analysis
• Employee survey, morale assessment

This project demonstrates AA&A’s capability to facilitate large-scale strategic overhauls and highlights our expertise in steering companies towards successful public offerings

• Sales Turnaround : Strategic initiatives, particularly in technology and operational efficiencies, led to a +12% boost in same-store sales for the leading brand
• Investment into New Categories : strategic advice to acquire brand rights for high-growth-forecast categories led to the expansion in coffee
• Service Standards : suggestions to improve service, speed, order accuracy, and cleanliness led the company to obtain accolades from the franchisor and improvements in operations compliance scores of 60%
• Productivity improvements : the year after the engagement employee productivity increased by close to 10%

Restaurant Case Study #5: Comprehensive Understanding of the Foodservice Equipment Landscape

An Original Equipment Manufacturer (“OEM”) had questions relative to commercial foodservice equipment purchases, technology/innovation, and restaurant decision-making. The company was looking to get a  comprehensive understanding  of the foodservice equipment (FSE) landscape to decide whether or not to get into the foodservice space at scale.

• $20-$30 billion range in annual revenue
• More than $1 billion adjusted free-cash-flow
• 60k-80k employees range

Insights into the foodservice industry landscape, including:

• Competitive landscape
• Deep dives into competitors’ product portfolio
• Equipment acquisition cycles for restaurant chains
• Restaurant chain typical equipment allocations
• Equipment efficiencies in labor, maintenance, food cost, etc.
• Complexity and variations by type of restaurant segment
• Cost of switching/stickiness
• Restaurant decision-making process (mind of the buyer)
• Decision-making for franchisors vs. franchisees
• Operating model OEM-dealer/distributor

Drawing on our firm’s industry experience, expertise, network, know-how, and know-who, we applied a holistic approach and combined anecdotal, qualitative, and quantitative insights to provide answers and tools:

• Audited the competitive landscape and areas of opportunity
• Surfaced white space and identified gaps existing in the offerings of domestic commercial foodservice equipment providers
• Introduced opportunities for disruption via innovation related to labor automation and alternative formats
• Recommended a dual focus on North America as the biggest segment but also a different market as the fastest-growing
• Inorganic approach to fast growth

About Aaron Allen & Associates

Aaron Allen & Associates  is a global restaurant consultancy specializing in brand strategy, turnarounds, and value enhancement. We have worked with a wide range of clients including multibillion-dollar chains, hotels, manufacturers, associations and prestigious private equity firms.

We help clients imagine, articulate, and realize a compelling vision of the future, align and cascade resources, and engage and enroll shareholders and stakeholders alike to develop multi-year roadmaps that bridge the gap between current-state conditions and future-state ambitions. Learn More.

Global Restaurant Industry Experts

We are focused exclusively on the global foodservice and hospitality industry. You can think of us as a research company, think tank, innovation lab, management consultancy, or strategy firm. Our clients count on us to deliver on our promises of meaningful value, actionable insights, and tangible results. 

Founded and led by third-generation restaurateur, Aaron Allen, our team is comprised of experts with backgrounds in operations, marketing, finance, and business functions essential in a multi-unit operating environment.

How We Help

We bring practical, relevant experience ranging from the dish room to the boardroom and apply a holistic, integrated approach to strategic issues related to growth and expansion, performance optimization, and enterprise value enhancement.

Who We Serve

Working primarily with multi-brand, multinational organizations, our firm has helped clients on 6 continents, in 100 countries, collectively posting more than $200b in revenue, across 2,000+ engagements. 

We help executive teams bridge the gap between what’s happening inside and outside the business so they can find, size, and seize the greatest opportunities for their organizations.

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