How to Build an Online Food Ordering System for Restaurant?

The food industry has always been one of the most thriving and lucrative businesses globally. In recent times, with the advent of online food ordering systems, the food industry has witnessed an unprecedented transformation. Online food ordering systems have revolutionized the way people order food, providing a convenient and hassle-free option to customers. As on-demand app development continues to gain momentum, it is unsurprising to see a surge in the adoption of online food ordering.

What is an On-Demand Food Ordering System?

On-demand food ordering system simply means that users can order food as and when they want. Adding icing to the cake, online restaurant food services help patrons choose their favorite dishes from their favorite eateries and restaurants. Seal the deal with a mobile app development company to work on a customized app for food ordering and delivery with unique features that cater to users’ demands to order food and get it delivered to their doorsteps.

The research giant Statista quotes that the revenue in the online food delivery market is likely to touch the 1 trillion USD mark in 2023 reporting the growth of a whopping CAGR of 12.33% from 2023 to 2027. Furthermore, the same page on the market research portal states that the meal delivery segment is likely to witness the number of its users increase and reach 2500+ million by 2027.

Why should you Invest in an Online Food Ordering System?

When everything is available online today, food delivery, cloud kitchen, or online restaurant is not uncommon. Not limited to first and second-tier cities, in many countries, on-demand food delivery apps have entered smaller towns and villages. This makes it a preferred business in today’s time. With the increasing popularity of online food ordering systems, it has become essential for food businesses to invest in these systems to stay competitive in the market.

An online food ordering system can help food businesses in many ways –

Increased revenue

An online food ordering system can increase the revenue of food businesses by enabling them to cater to a larger audience. With online ordering, customers can order food from anywhere, at any time, resulting in increased sales.

Customer convenience

Online food ordering apps provide customers with the convenience of ordering food from the comfort of their homes. This convenience can help businesses attract more customers and retain existing ones.

Streamlined operations

Online Food Ordering software can help businesses streamline their operations by automating the ordering process, reducing the need for manual intervention.

Better customer experience

Online food ordering solutions provide customers with a better experience by enabling them to customize their orders, track their deliveries, and provide feedback.

Additionally, these systems allow businesses to automate the ordering process and reduce manual intervention, leading to more efficient operations. Overall, investing in an online food ordering system can help food businesses succeed in today’s digital age.

5 Steps to Building your very own Food Ordering System

Online food ordering systems offer several benefits such as improved customer experience, streamlined operations, and increased sales. By going for a dedicated online food delivery application, businesses can provide customers with the convenience of ordering their favorite dishes in just a few taps, which can result in increased customer loyalty and repeat business.

Creating a food ordering system may seem like a daunting task, but it can be broken down into five simple steps:

Define your requirements

The first step is to define your on-demand food ordering app requirements and what features you want in your online restaurant food ordering and delivery application –is it an MVP? Or you want to develop a full-scale application.

Choose a platform

The next step is to choose a platform for your online food-ordering software. You can either build your own food ordering system from scratch or use a SaaS-based online food ordering system such as Foodiv. There are many platforms available that provide ready-made solutions for online food ordering systems, such as Shopify, WooCommerce, and Magento.

Design your product

The third step is to design your system for the restaurant business. You need to decide on the user interface, the ordering process, and the payment system. Your food delivery app system should be easy to use and navigate.

Develop your product

The app development process undergoes several stages, and being the core stage, this step adds functionalities to components designed for the UI. Using various frameworks and platforms, developers write code to make the product work according to the business objectives. After the product is programmed for its functionalities, testing for QA is performed to assure that the food ordering delivery system is developed as per its predefined scopes.

Launch and market your product

The final step is to launch and market an online food delivery and ordering platform with all the required features and functionality. Make sure that it is user-friendly and has little to no bugs. You need to promote your system through social media, email marketing, and other digital channels. You can also hire a top digital marketing agency to market your product.

How do Online Food Ordering Systems work?

On-demand food ordering systems work by connecting patrons with restaurants or food businesses. Below is the process of how food ordering and delivery work on an online restaurant app:

The customer places an order

The customer places an order through the food ordering system, either through a website or an app. It is done through a simple search for a dish or a favorite restaurant. While placing orders they can also choose the payment methods such as Cash on delivery (COD) or any other online or card payment options.

The restaurant receives the order and prepares it

The order placed by a customer is sent to the restaurant or food business. They receive and confirm the order received and then prepare food according to consumers’ cooking instructions.

The delivery partner picks up the parcel

When the customer places an order online to be delivered to their doorstep, a delivery partner picks up the order from the location of the food business such as a restaurant, cafe, bakery shop, fast food outlet, or pizza corner. They get directions through GPS-based features and facilities in the online food delivery app that helps them to navigate and reach the customer’s location.

The delivery partner delivers the order

The food delivery partner delivers the order to the customer. Again, they get a map and the exact location through geo-specific features on the online restaurant app to deliver the parcel.

What are the key features to have in a Food Ordering System?

There are many features available or customizable according to your business objectives. Online food ordering systems have grown exponentially over the years with custom food ordering features and solutions that make it an ideal choice for food business owners. In either case, there are key features of a food ordering system that you may want to look at:

• User-friendly interface
• Customizable menus
• Order management
• Payment gateway integration
• Loyalty programs
• Integration with POS systems
• Feedback and rating system:
• Push Notifications
• Real-Time GPS Tracking
• Easy Order Placement
• Order Scheduling
• QR Codes
• Search Filters
• Order History
• In-app Messages
• Contactless delivery
• Voice integration
• Bookmark favorite restaurants
• Proof of delivery

How to earn money with an Online Food Ordering app?

The ultimate goal is to let the cash flow to your business account. Online food ordering and delivery applications have varieties of business models you can choose from. Here are some of the renowned money-making models for online food ordering and delivery systems. You can adapt one or more than one models for your product.

Commission-based model

This monetization model for online food ordering solutions involves charging restaurants a commission on each order placed through the application. This model is attractive for businesses that don’t have their delivery fleet and can benefit from the app’s delivery services. The commission rate is usually a percentage of the total order value and can range from 10% to 30%.

Subscription-based model

This model to earn money involves charging restaurants a monthly or annual fee for using the online food ordering portal. It is popular among businesses that have their delivery fleet and can benefit from the app’s advanced features. The subscription fee can include features like menu management, order tracking, and customer data analytics.

Advertising-based model

This money-making model involves charging restaurants or food stores for advertising on the app. The app displays ads from restaurants or other businesses on the app and charges a fee for the ad placement, which can be based on clicks, impressions, or conversions. This model can be attractive to businesses that want to increase their brand visibility and reach a wider audience.

Delivery charges

This model to make money involves charging customers a delivery fee for each order. This model is beneficial to food businesses that have their delivery fleet. The app for food ordering and delivery charges a delivery fee from the customer, which can vary depending on the distance and the order value.

Surge pricing

This revenue-generating model involves charging customers more during peak hours or busy periods. Surge pricing is especially important for food delivery businesses that promise fast delivery times, such as 10-minute delivery. With 10-minute food delivery, the pressure to have enough drivers available to fulfill orders quickly is high.

Geolocation-based commission models

Geolocation-based commission models are also essential to earning. With a geolocation-based feature, the system can accurately determine the demand for delivery services in different areas and adjust the prices accordingly.

For example, if the demand for delivery is high in a certain area, but there are not enough drivers available, the system can increase the prices of menu items in that area to encourage more drivers to join the fleet and fulfill orders.

Conversely, if there are too many drivers in a certain area, the system can decrease the prices to incentivize customers to place more orders and balance the supply and demand.

Top 8 Ways to Monetize Your Mobile App

What are the benefits of an Online Food Ordering and Delivery System?

Online food ordering and delivery apps for customers and restaurants have a win-win situation. It makes ordering food and getting customers easier at the same time. Though there are ample benefits of a food ordering system, broadly, we can conclude them into four most important ones:

Increased sales

A food ordering system can increase sales by enabling food businesses such as restaurants to reach a larger audience.

Improved customer experience

Other than receiving the food from their favorite restaurants and food places in the comfort of their home or preferred location, A food ordering system can provide customers with a better experience by offering convenience, customization, and tracking options.

Streamlined operations

A food ordering platform can streamline operations by automating the ordering process and reducing manual intervention.

Better marketing

A food-ordering mobile app can help businesses market their offerings to a wider audience through social media and other digital channels.

Easy expansion

With the rest of the things in the right place, it is easier to expand the business of online food delivery or restaurant ordering.

How much does it Cost to Develop an Online Food Ordering System?

The cost of developing an online food ordering system depends on several factors, such as the features, platform, and development team. A basic system can cost anywhere from $10,000 to $50,000, while a more advanced system such as a super app for food ordering and delivery can cost upwards of $500,000.

What technology stacks should be preferred for food ordering & delivery system development?

Tech Stack for Web

• Frontend: HTML, CSS, JavaScript, React, or Angular
• Backend: Node.js, Express.js, MongoDB, or MySQL

Tech Stack for Mobile

Technology Stacks for Android Food Ordering App Development

• Programming Languages- Kotlin vs Java
• Toolkit- Android Developer tools, Android Studio
• Software Development Kit (SDK)- Android SDK

Technology Stacks for iOS Food Ordering App Development

• Programming languages- Objective-C, Swift
• Toolkit- Apple Xcode
• Software Development Kit (SDK)- iOS SDK

Technology Stacks for Hybrid Food Ordering App Development

• PhoneGap/Cordova
• Ionic

Technology Stacks for Cross-Platform Food Ordering App Development

• React Native
• Flutter
• Xamarin

Payment Gateway Integration

• Stripe
• PayPal
• Braintree

Cloud Hosting

• Amazon Web Services (AWS)
• Google Cloud Platform
• Microsoft Azure

Push Notifications

• Twilio
• Push.io

SMS, Voice, and Phone Verification

• Nexmo
• Twilio

Database

• MongoDB
• HBase
• Cassandra
• Postgres

Email

• MailChimp

Real-time Analytics

• Hadoop
• Spark
• Apache Flink
• Cisco
• IBM

Map Navigation

• Google Map

Food Ordering Simplified!

In conclusion, an online food ordering system is a must-have for any food business looking to expand its reach and provide a better customer experience. The system can help businesses streamline their operations, increase sales, and attract new customers. By following the steps outlined above and considering the key features and business models, anyone can create a successful online food ordering system.

Avantika Shergil   |  Mar 21, 2023

An enthusiastic Operations Manager at TopDevelopers.co, coordinating and managing the technical and functional areas. She is an adventure lover, passionate traveler, an admirer of nature, who believes that a cup of coffee is the prime source to feel rejuvenated. Researching and writing about technology keeps her boosted and enhances her professional journeying.