Food Delivery: The New Frontier

By Vladik Rikhter

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It’s a pizza company! … It’s a tech company! … It’s Domino’s!

I doubt Domino’s will pick up a motto that infringes on DC Comics, but that’s essentially what they’ve become—a superhero among companies that handles delivery themselves. Think about all of Domino’s innovations in food delivery over the past decade, as highlighted in this recent Eater articlethat declares Domino’s “the Best Delivery Startup in America.” When it comes to investing in technology, Domino’s has always been a company that got it right.

One of the great paradoxes of Millennials is that they are social media whizzes but antisocial because they are always on their phones. Domino’s foresaw the importance of on-demand and online ordering well before their competitors did.

Domino’s continues to set the bar high for companies who want to maintain control over their food quality by delivering their food themselves. Keep in mind that Domino’s is no spring chicken—it was founded in 1960! While newer pizza companies may be touting the craft pizza experience, Domino’s is still the go-to pizza delivery service for the pajama crowd. With Domino’s introduction of new chatbots, visitors don’t even have to talk to a human or go to the Dominos ordering website to order a pizza—just message the chatbot to order your pizza. Some of these innovations haven’t been perfect upon rollout, but considering Domino’s strong market position, they don’t need to be. Domino’s may be learning what works as they go along, but at the end of the day, they own their own process.

Here’s the reality: the third-party food delivery space is becoming crowded. There will be few winners and many losers. With Amazon, Google and UberEats now moving into the space—not to mention the expansion of GrubHub’s turnkey service—only the best will survive. So the question is: Where does that leave foodservice operators?

There are two possible scenarios
  1. Companies like Domino’s rely on third-party delivery companies to deliver their food
  2. They continue taking ownership of their own food delivery

Restaurant delivery isn’t for everyone. We know from our experience working with foodservice operators: delivery workforces are difficult to maintain.  

But if you offer delivery and you’re serious about becoming better at it, you have to become more serious about technology. You also have to become more serious about what’s going on in your stores. Domino’s can offer a pizza tracker because they’ve got the process for making a pizza down to a science. Even if you’re not at that level of tech, are you able to address problems in real time? Something as basic as an ingredient shortage or a failure to implement a new promotion can really hurt your bottom line.

Zenput is a mobile solution that helps foodservice operators gain valuable insights about their businesses in real-time. Whether you are exploring food delivery or looking to improve your current operations, Zenput can help you identify exceptions, timely address problems, and improve your restaurant operations. Zenput already helps the 5th largest Domino’s operator in the U.S. manage daily tasks and improve store productivity. Find out how Domino’s franchisee Hismeh Enterprises uses Zenput by checking out this case study.

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Topics: Restaurants, Delivery