The rise of food delivery apps has significantly boosted profits for astute restaurant owners, as insights from banking data aid businesses in optimising their marketing strategies. Recent figures from Westpac indicate a national increase in food delivery spending of 7.8 per cent over the past year.
Avi Labi, who owns South Dowling Sandwiches in Sydney, has successfully adapted his business to take advantage of this trend. With a steady flow of delivery drivers near his establishment, he reports an average of 200 orders daily, highlighting the growing reliance on food delivery services.
Westpac’s analysis reveals that restaurants leveraging food delivery platforms enjoy an average turnover boost of $100,000 compared to those that don’t. Although platforms like Uber Eats, Menulog, and DoorDash charge commissions of up to 30 per cent, Labi finds that the increased customer reach makes it worthwhile, with these platforms now accounting for 50 per cent of his business.
To support small businesses, Westpac offers consumer data analytics, helping them understand market trends and customer behaviours. This data enables restaurants to make informed marketing decisions, such as identifying promising locations for new establishments. For instance, they can reveal hotspots where consumers are most active in purchasing.
The regions that have seen the most benefit from the food delivery surge include Victoria, followed by New South Wales and Queensland. Demand is particularly high in outer suburban areas, such as south-west Melbourne, western Sydney, Ipswich, south-eastern Perth, and northern Adelaide.
In summary, the food delivery boom presents lucrative opportunities for restaurant owners willing to adapt, leveraging data-driven insights to enhance marketing effectiveness and expand their customer base.