F&B industry is on the verge of a huge transformation taking shape in form of IT oriented services and amenities. Bourgeoning smart phone users and the rise of middle class has shaped the current transformation. Consumers are becoming more demanding than before with growing purchasing power. On the other hand, a massive information flow has facilitated the society to be updated with latest trends across the globe. Mobile business is becoming a mainstream trend across every business sector. The contribution of this sector is growing in business, as transactions are becoming mobile oriented. Communication and information exchange through mobile devices is gradually emerging as a major revenue earner in any business.
There were more than 850 million active mobile connections in the country in March 2015. With increasing proliferation of communication throughout remote locales across the country, number of mobile subscribers will further increase exponentially. Mobile devices became the primary mode for long distance connection and communication. With Smart phones turning to be the most popular device among masses, use of mobile applications is gaining massive momentum. There is a mobile app for almost everything, offering competitive range of services. They have become a part of daily lives of people integrated to lifestyle and living. The trend is gradually encompassing new sectors and industry verticals. Mobile apps were adopted long before in sectors such as finance, banking and retail. Within sectors such as health and agriculture, they are gaining rapid popularity.
The current trend, which is rolling over with tremendous impact on the market is Restaurant or Food Ordering Mobile App. The F&B industry is pacing up in the race of technology boom. In this backdrop, the market is growing to be highly competitive. This has rendered a sheer requirement of innovation and flexibility of any business matching up to expectation of customers. A look at the evolution of restaurants and food ordering traits over the last 10 years will prove how technology has changed the whole landscape of both B2B and B2C operation.
More than 70% of mobile apps are used in urban locales in India. This urban middle class forms the largest categories of customers who have adopted a technology-oriented lifestyle the most. Food ordering apps are becoming popular among this customer segment. Mobile apps have grown to encompass the whole dining out experience of customers. From the first touch point, which is discovering a restaurant up to paying up the final bill; mobile apps are being used throughout its every state. The preferences of localities, the sitting arrangements, distance, checking out the menu, ordering and so on can be all done through mobile apps. Mobile apps allow every little customization of cuisines, size, ambiance and place that can make the experience a happening one. They offer what users exactly want and provide tailored services.
The advent of technology is offering dynamism to the entire restaurant business. Before businesses relied on word-of-mouth, hoardings and flyers, which offered limited outreach. In printed media businesses had to spend good amount, as only a famous critic could promote them through written reviews. Now, with the advent of digital media, unbiased reviews of restaurants and services are available and additionally, customers could offer reviews of their own, completely at no cost. These add to popularity as well as the quality of any restaurant or foodservice. As people can share their experience with millions in no time using mobile apps, customers are now empowered to impact the business and contribute to improvement of any service. Businesses now run with much vigilance to satisfy consumers as it has direct impact on profit. Therefore, apps are becoming a powerful platform to proffer innovation and excellence in F&B sector. Using this platform, small and medium businesses can enjoy greater outreach to customers on a very limited cost.
Mobile apps offer customers wide and convenience payment options. Mobile payment facilities provide options of cashless transfer and customer no longer need to carry money. Online payments are gradually becoming more popular among consumers in India. The Indian E-tailing industry is expected to grow to $50 Billion by 2020.
App based business is helping small and medium enterprises to extent their scope of business. Online food ordering is emerging as a segment that caters to a wide range of consumers. Leveraging this platform, companies are offering all round solutions to various stakeholders of the industry such as merchants, consumers, logistics and marketing. IT platforms offers comprehensive range of business avenues making operation processes easier to manage.
The market of Deal and Coupons is emerging as a unique segment. The category is gaining massive popularity among urban elites. Incentivizing purchases, referrals and providing loyalty offers are strong marketing techniques that form a massive customer base. It helps the business to grow exponentially without extra investment in advertisement and promotion. Apart from this, another segment of apps have started to show up that are now providing solutions to other aspects related to one's dining experience. Apps let customers to calculate the ideal amount and allow splitting it the bills among the buyers. There are apps that suggest the type of drinks one should have based on the ordered food.
Mobile apps are transforming business paradigms in F&B Industry offering amenities to both customers and business. There are over 55,000 restaurants across India and the trend will become more fervent in coming times.
(Author Sameer Grover is CEO Crown it)
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