Food Franchises: The new D2C business model
by Ordering on Feb 22, 2022 4:36:57 PM
The D2C model can be defined as an independent platform where goods and services are offered directly to customers without the involvement of any third parties.
If you own a food franchise or are considering starting one, you're undoubtedly wondering how to go about selling online. We'll go over the D2C model in further detail in this article and how to take a food franchise online game to the next level.
In 2020, many of the biggest franchises started collaborating with delivery services, such as Uber Eats and Deliveroo. In the beginning, as third-party platforms grew in popularity, it was an excellent way for franchisees to increase the convenience factor for their loyal customer and take advantage of third-party technology.
However, the commissions started growing up to 30% over time, and the technology needed to launch their platform became more available than before. For this reason, food franchises began to move towards starting their on-demand delivery platforms, leading directly to their customers.
Why is the D2C business model beneficial for a food franchise?
Closer connection with the customer niche
Compared to a single-store restaurant, franchises like Mcdonald’s or Starbucks already have a big scope of loyal customers, regardless of their presence on third-party apps.
You have probably done a fair share of data collection and analysis regarding your targeted niche if you own a food franchise. You are well aware of their demographics, spending patterns, and overall customer profiles.
This information is essential and valuable when shifting towards a D2C business model. Knowing the customer very well will benefit you in designing your application, figuring out the primary pain, and gaining points.
For example, being aware that your customers value a speedy delivery, you can invest in a higher number of delivery employees and outshine the third-party competition, as you're going to build a reputation f the quickest delivery platform.
More financial control
Without a doubt, having your D2C platform means having more financial control and having a much higher profit margin without the need to increase the prices of your products.
The service and delivery fees are entirely up to the franchise and do not need to comply with the intermediary’s financial requirements.
Possibility to customize
Food franchises become successful because of their consistency and unique experience. Selling online directly to the customer provides the freedom to bring this experience online and give your customers a glimpse of actually visiting the restaurant in person.
This includes videos, colors, logos, special offers, newsletters, and more. Having a direct-to-customer platform provides the freedom to directly interact with the customer, whereas intermediary platforms offer many limitations as to the level of customization of each page.
What tools are needed to launch a DTC platform?
Before implementing the D2C business model, technology is the number one factor that will determine its success.
The operating system needs to be fast and sleek, giving your food franchise a competitive advantage among other platforms. The ordering process should be straightforward and straightforward, including a variety of payment options, basket editing, and reordering favorite meals within a click of a button.
A reliable delivery service
The delivery service is always the most common source of consumer complaints. When selling food, timing is critical because it must be delivered warm, to the correct location, and within the desired timeframe.
To compete with third-party ordering apps, you must offer a pleasurable and memorable user experience that is simple, quick, and engaging. Implementing software with a unique soccer management system and push notifications that keep customers informed about the progress of their orders at all times is a terrific approach to do so.
Order management system
You need to invest in a tremendous internal order management system not to miss a single order. Ensure that the software you are using features a dashboard that provides an excellent overview of the inventory, traffic, and number of pending orders and monitors the driver’s journey.
This will be a helpful tool that not only improves the user’s experience but also avoids having too much or too little inventory.
Are you ready to implement the D2C model for your franchise?
If you are ready to take your food Franchise to the next level, and start selling D2C, check out Ordering.co. You do not need to be an expert in coding and design, to operate their platforms efficiently. The enterprise specialist will guide you along the way with any questions you may have.
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Topics: Solutions and Use Cases