Grow your restaurant delivery business by thinking small. The advantage to hyper-local restaurant delivery data.
As companies expand their operations to a global scale, others are seeing results by going the opposite direction. Hyper-localization is yielding tremendous results in a variety of industries. E-commerce is leveraging micro-fulfillment centers and major brands are offering same-day delivery, much to the delight of customers—and the bottom line.
Many restaurant delivery services and other companies have massive footprints, which can put pressure on RDS owners to think big. However, a hyper-localized approach to food delivery offers considerable advantages to RDS owners.
Here are three advantages to choosing a hyper-local food delivery range.
A smaller footprint means faster food delivery.
According to Statista, over 50% of people expect their food delivery orders to arrive in under half an hour. And people are more than willing to shell out for that service: 27% to 33% of customers will happily pay extra to get their food faster.
Simply put, fast delivery has real value for customers. The best way to deliver that value—pun intended—is to choose your delivery range accordingly. Opting for a tighter delivery range means you can set yourself apart by offering lightning-fast delivery.
Shorter food delivery times lead to better food quality.
Temperature plays a meaningful role in the taste—and enjoyment—of many foods. But food delivery can introduce a complicating factor: time. Hot foods cool down, cool foods become lukewarm, and frozen foods melt as the minutes tick by. The only way to preserve that intended serving temperature for as long as possible is speedy delivery.
A smaller delivery footprint makes this much easier. When the food never travels farther than a set distance, you can reduce the likelihood of delivering a disappointing meal.
Reduce operating costs with shorter deliveries.
Sticking to a smaller delivery radius can lead to cost savings for your business. Shorter routes means lower fuel costs for every delivery, not to mention more efficient use of driver time. If your drivers aren’t going as far for every delivery, they can complete more deliveries per shift.
Leverage customer loyalty with a hyper-local food delivery approach.
There are many reasons why customers prefer to support local businesses. In fact, since the COVID-19 pandemic, a majority of people are motivated to prioritize local businesses over large chains. Opting for a smaller footprint allows you to leverage this passion for supporting local, especially if you market your RDS strategically.
Action steps: How to execute a hyper-local food delivery strategy.
There are two initial steps you might consider when developing a hyper-localization strategy for your RDS.
The first is to define your geographical delivery range. Based on the earlier cited statistic, you may simply decide to limit your footprint to guarantee a thirty-minute delivery window. You may also choose to limit based on distance, rather than travel time. If your RDS has a “homebase” or central location, this can serve as your starting point for mapping out that footprint.
The second is to build your footprint based on your current or desired restaurant clients. Determine the most popular restaurants in your area, the ones that yield the best revenue for you. These can be your anchors as you determine the boundaries of your delivery range.
Once you’ve determined your delivery range, you can focus all your marketing efforts within that footprint. After all, that’s where all your potential customers are. There’s no need to spend time or money outside those boundaries.
Lots of your marketing will be focused on the specific meals and foods you can deliver. But you can share messaging about supporting small, local businesses, too. Check out this article on how to earn the trust of your local customers.
One of the most effective tools for managing your local delivery footprint is restaurant delivery service software, like DataDreamers. DataDreamers uses artificial intelligence (AI) to optimize delivery routes and streamline communications between restaurants, drivers, and customers. This state-of-the-art software has all the tools you need to leverage a hyper-local approach and bolster your RDS business.
Ready to see DataDreamers in action? Schedule a demo >