In a post-pandemic world, the restaurant industry has witnessed a seismic shift in consumer behavior. Online food delivery has surged, commanding as much as 30 percent of many restaurant brands’ revenue, a significant leap from the pre-pandemic era when it accounted for less than 10 percent. This transformation presents immense opportunities, but it also brings challenges that demand immediate attention. In this article, we explore the twin pillars of dispute management and data consolidation and their pivotal role in the success of restaurants venturing into the world of third-party delivery.
The Dilemma:
1. The Black Box Syndrome: Despite the staggering growth in online food delivery, many restaurant brands have not adapted their operational processes and technologies to accommodate this expanding online business. For many, the realm of third-party delivery remains a mystifying “black box.”
2. Manual Data Dilemma: Existing marketplace systems place a heavy burden on restaurant operators, demanding a substantial amount of manual effort to extract crucial data. Imagine spending an hour per location per week just to gather accurate financial information from these platforms. For a chain with 50 locations, that translates to a colossal amount of manual labor—200 entities across four channels requiring data extraction and analysis.
3. The Cost of Missing Information: Failing to access critical information, such as customer reviews or real-time marketing expenditures, can lead to compromised customer service and reduced marketing performance. In an industry where profit margins are already razor-thin, this lack of real-time insight can prove disastrous.
Mastering Dispute Management:
1. The Growing Challenge: As more customers turn to online food ordering, the potential for disputes has grown exponentially. On average, 5 percent of orders are disputed, resulting in thousands of dollars in lost revenue, directly impacting profits. For a 100-plus location food brand, this lost revenue can reach up to a staggering $400,000 per year. Unresolved disputes also contribute to high customer churn.
2. The Need for SOPs: Currently, many restaurant brands lack standardized operating procedures (SOPs) for effective dispute resolution. This gap further exacerbates revenue losses and erodes brand reputation. However, with advanced AI and machine learning solutions, dispute resolution rates can soar as high as 90 percent.
The Power of Data Consolidation:
To survive and thrive in the digital dining era, the restaurant industry must recognize the profound impact of third-party marketplaces on their business. However, this growth also introduces a significant challenge—data fragmentation.
Data-Driven Decision-Making:
Restaurant operators often find themselves navigating a fragmented data landscape, with limited insights across their online revenue channels. The key to overcoming this challenge is data consolidation. By aggregating, organizing, and analyzing data from various sources, restaurant operators gain a comprehensive view of their performance, enabling informed, data-driven decisions.
Efficient Workforce Management:
Labor management is currently the number one challenge facing the restaurant community. Here, data consolidation offers a powerful solution. By consolidating data from various platforms, restaurant operators gain insights into peak ordering times, order volume trends, and delivery preferences. This invaluable information enables better staffing decisions, improving operational efficiency and cost savings.
Dispute management and data consolidation are no longer optional in the restaurant industry; they are essential strategies for success in the digital dining era. As the complexities of managing disputes and harnessing the power of data from multiple sources continue to grow, restaurant operators must prioritize these aspects to remain competitive, efficient, and profitable. Embracing the opportunities presented by digital dining and leveraging innovative technologies is the key to a bright future for restaurants, especially in the face of unprecedented challenges.
Priyam Saraswat is the CEO and cofounder of Voosh. Saraswat began his career in the tech-driven world of Schlumberger, the globe’s leading oilfield service company. Yet, the vibrant startup ecosystem soon drew him in. He launched Tazzobikes, a bike-sharing initiative, which saw substantial growth and led to a successful exit within two years. Following this, Priyam played a pivotal role in the global expansion of several startups, including the well-known OYO. It was during these travels that he identified a need: many in the food service sector were navigating their businesses with outdated tools. This observation birthed Voosh, aiming to bring modern tech solutions to restaurant operators worldwide. The potential of Voosh was quickly recognized, earning it a spot in the esteemed Y Combinator program.
