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On Demand Businesses 101

How much does it cost to develop an app for Restaurants?

None can doubt the fact that Uber has turned out be one of the most successful ventures and inspired thousands of other young budding minds to think innovatively.

The tremendous response and taste of success in taxi booking app made Uber further expand its customer services and penetrated into the arena of online food deliveryUberEATS, which is also another on-demand app gaining popularity worldwide.Some stats show how the on-demand food delivery app has already got the attention of food lovers. According to one of the surveys, It has been found that

  •  Revenue in the “Online Ordering” segment amounts to US$110,044m in 2018.
  • User penetration is at 12.1 % in 2018 and is expected to hit 18.7 % in 2022.

Who benefits from this market growth?

Chain restaurants and third-party enablers will likely share in those gains, but not equally. If third-party aggregators and delivery services pull ahead, restaurant chains could lose control of the consumer experience. On the other hand, the chains may be better at creating scale and cost efficiencies.

The ramp up of online food delivery faces some challenges. The biggest impediment is cost, given the high current pricing for delivery. While Millennials seem willing to spend on convenience, broader adoption may require lower fees or other creative approaches, Alternatively, chain restaurants may need to reduce a portion of that delivery cost over time. As that occurs, some restaurants may choose to establish their own delivery networks.

As seen in retail, travel, and transportation, technology can and does change consumer patterns when access is easier and cheaper. Ultimately delivery may end up expanding restaurant demand, not just shift share within it.

Creating demand for your restaurant

If you are conducting a thorough research before jumping into the market, you will be familiar that basically foodservice platforms have been categorized into three distinct categories:

  • Online delivery services that only provide a platform for restaurants that run their own delivery service (e.g. Uber eats)
  • Meals ordered online from restaurants that deliver the order themselves through their delivery service(e.g Dominos)
  • Online orders that are picked up in store

Here we will discuss the restaurant order platform  because it has grown in popularity and will also assist in creating or expanding demand for your restaurant business locally.

Features of full-service platform :

  • Online ordering portal for customers
  • Dashboard for seamless restaurant management for Managers
  • Agents or delivery boys- For quick and on-time delivery

How much does it cost to develop an app for Restaurant Ordering Platform?

Cost of making a Restaurant ordering app depends on numerous factors. But here’s an attempt at the estimate. Building an MVP for an On Demand Platform involves creating web/mobile interfaces for both supply and demand. Add to this the fact that native experiences are the expected norm leading to parallel development efforts if we chose to build both for iOS and Android. The other important component is the nerve center/admin panel that doubles up as a CRM and a Dashboard to control some of the critical operations. Everything is glued together by the APIs that operate on top of central databases and control logic – part of the backend framework that runs in the cloud.

Assuming the platform architecture is scalable and is able to handle 500-1000 transactions a day right away we are looking at an upwards of $299k effort for an initial MVP. Variations in the ballpark primarily are on 3 accounts –

  1. Number of stakeholders
  2. Number of platforms that are part of the initial launch
  3. Complexities in the business model
  4. Geography/ Region out of which your development team operates or engineers the product. Per hour rates vary from $40 -$60 (parts of India/Eastern Europe/South East Asia) to $80 -$150 (parts of Western Europe/US)

All in all the costs for an MVP while taking our approach can be as low as USD 299 for an app to USD 80k. But more than the cost advantage the bigger value proposition that we bring to the table is experience drawn from doing more than 50+ On-Demand  Platform in different geographies and domains. This makes the approach consultative wherein at every step, we draw from the playbook of many successful implementations that we have been associated with directly and indirectly.

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