In 2020, the fast-food market was worth $860 billion, and by 2021, it will be worth $970 billion. By 2028, the industry is expected to reach $1450 billion, with a 6.05 percent compound annual growth rate. The food and beverage industry has outgrown other industries as customer demand for faster delivery grows.
The industry's growth has been fueled by changing consumer behavior and the people who spend money on food, particularly the youth, as well as digital payments. Furthermore, most businesses have begun to accept orders online, which has resulted in explosive growth, particularly in developing countries.
At Apptunix, we've helped several top brands automate Delivery Management Software, including Starbucks, KFC, BurgerKing, and Pizza Hut, and here are some key takeaways for any upcoming fast food restaurant chain looking to digitize and automate their delivery management:
Rider Standard Operating Procedures (SOPs) that are simple to follow
I've seen stores/branches dealing with this issue when using an outsourced delivery partner. Companies that use an in-house fleet as delivery partners will have fewer driver management issues than those that use an outsourced carrier, because the latter will lack the best training to meet the company's standards.
As a result, businesses should have a standard operating procedure (SOP) that demonstrates a simple and streamlined process that only deals with pick-up and delivery, as well as additional photos for proof of delivery. A standardized SOP will help drivers understand the process and act accordingly to meet the highest delivery standards, as rider attrition is among the highest in the QSR industry.
You won't have to worry about training your riders for the last mile delivery if you train them using documentation or videos.
Demand forecasting and smart rider management for peak utilization
Consider a scenario in which a store has five riders to complete a delivery. Unless you're into breakfasts, the time between 9 a.m. and 11 a.m. is usually slow. However, after 11 a.m., when people order in for lunch, there is usually a surge in orders, and all of the drivers are fully utilized to complete the deliveries.
There may be times when you are unable to make deliveries due to a driver shortage. In such cases, having a smart on-demand delivery management system that can assist you with demand forecasting will ensure that your riders are used to their full potential.
A predictive system that can assist the store manager in predicting the number of orders that will be received per day and that can be easily integrated with any solution will ensure that your fleet is being used to its full potential.
For instance, a solution like LogiNext can help you get a rough estimate of the number of deliveries, which will help you figure out how many drivers you'll need to finish the job. This feature will improve the user experience for last-mile delivery companies by a factor of ten.
Smart Orders are assigned based on the length of time it takes to prepare an order in the queue.
In most business use cases, I've found that as soon as an order is received at the store, the nearest driver is notified to pick it up.
The driver who is closest to the store will receive the alert and will arrive at the store to pick up the package. The issue with this type of driver assignment is the amount of time the driver must wait for the order to be handed over. As a result, preparation time is critical in QSR deliveries.
If the driver is not assigned within a certain amount of time for FIFO order deliveries, the store manager must manually assign the driver. However, with a smart order management system, the driver will be notified when there is only a short amount of time left to prepare the order, such as 3-5 minutes, and only then will a driver requirement alert be sent, reducing driver wait time at the store.
As a result, integrating a delivery management system with a kitchen management system will ensure that your drivers are used efficiently for last-mile delivery.
Riders will be rewarded with smart incentives if they improve their delivery performance.
Riders/delivery associates are compensated in one of two ways: as a freelancer or as a salaried employees. A freelance model is more efficient because riders are paid based on the number of orders they deliver.
By offering driver incentives, I mean that the number of orders a delivery associate/rider can deliver in a certain amount of time, particularly during peak hours, will earn them more money. Additionally, offering additional incentives to make deliveries on weekends will encourage a faster driver turnaround.
To attract more drivers and improve last-mile delivery, a quick service delivery management company should focus on a smart incentive system.
The new fad that the media has created as a risk factor for drivers is driver safety in completing orders. However, this is where I believe the smartness comes into play: the delivery can be broken down into multiple slabs, such as completing a certain number of orders within a certain timeframe so that the pool is efficiently managed and the driver is not overworked.
Any third-party rider management company can seamlessly onboard you.
Integration with third-party carriers has become necessary as the number of orders continues to grow, in addition to providing complete visibility and real-time delivery tracking.
Because most companies will outsource their logistics needs, the integration should be seamless. Onboarding third-party carriers, in my opinion, will become the main selling point for any product seeking efficient last-mile delivery.
With accurate ETAs and a seamless customer experience,
Customer service is king in any last-mile delivery operation. The key to ensuring maximum customer satisfaction is to have the perfect combination of a dependable system and capable drivers.
At the end of the day, the customer only cares about one thing: his or her order. And providing accurate real-time delivery estimates is crucial to establishing consumer trust in food or grocery deliveries.
I am convinced that the success of all of the aforementioned points is contingent on high on-the-ground compliance by all teams. Your team must be proactive; drivers must be well-trained in order to use the app, and the app must be designed in such a way that it is easy for them to use on a regular basis.
The store crew, store manager, and driver/rider all play critical roles in ensuring all compliances are met when completing deliveries for a seamless last mile delivery experience.
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