Online Food Ordering - Food Delivery Service

Online food ordering is a process of ordering food from a local restaurant or food cooperative through a web page or app. Much like ordering consumer goods online, many of these allow customers to keep accounts with them in order to make frequent ordering convenient. A customer will search for a favorite restaurant, usually filtered via type of cuisine and choose from available items, and choose delivery or pick-up. Payment can be amongst others either by credit card or cash, with the restaurant returning a percentage to the online food company.

In May 2015, TechCrunch reported that "of the $70 billion [takeout and delivery market], only about $9 billion (roughly 13 percent) is online."

Service types

Restaurant-controlled

The preexisting delivery infrastructure of these franchises was well suited for an online ordering system, so much so that, in 2008, Papa John's International announced that its online sales were growing on average more than 50 percent each year and neared $400 million in 2007 alone.

Local companies have teamed up with e-commerce companies to make ordering quicker and more precise. Annie Maver, director of operations for The Original Pizza Pan, Inc. of Cleveland, Ohio comments that "the system is good for customers who don't speak English."

Some restaurants have adopted online ordering despite their lack of delivery systems, using it to manage pick-up orders or to take reservations.

Independent

Independent online food ordering companies offer two solutions. One is a software service whereby restaurants purchase database and account management software from the company and manage the online ordering themselves. The other solution is an Web-based service whereby restaurants sign contracts with an online food ordering website that may handle orders from many restaurants in a regional or national area.

One difference between the systems is how the online menu is created and later updated. Managed services do this via phone or email, while unmanaged services require the customer to do it. Some websites use wizards to find the best-suited menu for the customer.

Food cooperatives

Food cooperatives also allow consumers the ability to place an order of locally grown and/or produced food online. Consumers place an order online based on what is available for the ordering cycle (month, week) and then pick up and pay for their orders at a central location.

Apps

Many restaurants offer the technology to place an order with an app, and may offer a discount or bonus item when the order is placed.

Online menus

Advantages for online ordering

Customers are turning more towards online food services options for the convenience its offers, the variety of options and affordable food choices.

Disadvantage for online ordering

Customers are not able to ask about quality of food or ask for any specialized diet foods. It is more difficult to ask for gluten free or allergy free foods with online ordering. Also, it is more possible for a customer to place an order but never pick up the order which can lead to waste of food and possibly a loss of profits.

Timeline of online food delivery

This is a timeline of online food delivery.

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But by September, online delivery still accounted for just about 3 percent of the 61 billion U.S. restaurant “visits” or transactions.

Full timeline