New research from online ordering and loyalty platform for takeaways and restaurants - Flipdish - suggests that pivoting to a takeaway/delivery business model during lockdown, saved over half of all independent restaurants in Ireland.
“As a result of the change of business model, 67 percent of businesses were in a position to earn up to 20 percent of revenue compared to their income before the pandemic.
“In total, 2,500 members of the Restaurant Association of Ireland were canvassed in March for the Flipdish survey. The survey was commissioned to mark the anniversary of the first lockdown in Ireland and to bring attention to the challenges that the hospitality sector had experienced in the previous 12 months.
“The research found only 26 percent of restaurant owners relied on aggregators like Just Eat and Deliveroo, while 68 percent of restaurant owners created their own takeaway or food delivery service in the aftermath of the first lockdown restrictions. Of all restaurant owners in Ireland who responded, over nine in 10 (93 percent ) believed that the commission fees (of up to a third of the order value ) charged by aggregators during the pandemic, were unfair.
“The data also showed restaurant owners pivoted for financial reasons, with 61 percent of respondents stating offering takeaway was the only way to keep a revenue stream; 57 percent believed without doing so, they would not have survived. Owners believe they had to take matters into their own hands, as an extraordinary 56 percent do not believe government support has been adequate.
“There are also emotional drivers behind the decision to pivot to takeaway and delivery - 56 percent wanted to provide employment to staff, 40 percent felt it kept them involved in the community, 31 percent believed it was important for their mental health to keep open, and 16 per cent felt obliged to support the community’s vulnerable people. In fact, 62 percent of restaurant owners were able to keep between one and five members of staff working because of the pivot.
“The pandemic has seen the restaurant industry move towards in-house technology to both survive lockdown but also to engage directly with their customer base and look to grow their business when restaurants re-open. Ninety eight percent do not believe using aggregators to provide takeaway services is a long-term solution; 87 percent believe they need to be in control of their data, customers and branding to rally and thrive after the pandemic, which is not adequately provided to them through aggregator platforms; 82 percent of restaurants that use aggregator platforms would consider setting up their own websites or mobile apps to offer takeaway services.
“Restaurants that had already invested in their own website or mobile app are optimistic about the future. Sixty eight percent will continue to offer takeaway and online food delivery services after the pandemic, as they feel it offers a long-term business model; 87 percent of respondents believe that for the long-term sustainability of their business it is important to be in control of their own data, branding and customers by encouraging sales to come directly to their own website/app,” Flipdish stated.
